6 Aug 2010 15:05

CEDC increases H1 sales 27% to $710 mln

MOSCOW. Aug 6 (Interfax) - Polish alcohol holding Central European Distribution Corporation (CEDC), which owns the Russian vodka-makers Russian Alcohol and Parliament, increased its first-half sales 27% to $710.8 million from $559.6 million in H1 2009, the company reported.

CEDC's gross profits for the period were up 30.9% at $162.6 million, while net losses were down at $101.4 million from $126 million in H1 2009.

Company President William Carey, who was cited in the report, pointed out the growing demand for his company's products on the Russian market, where around 75% of CEDC's revenues comes from. Q2 vodka sales were up 7.5% in terms of physical volume, and those of imported alcoholic beverages 14%, in large part due to the Russian government's crackdown on illegal alcohol producers. Parliament brand product sales were also up 14% thanks to improved distribution.

CEDC expects its sales revenues to rise to $1.8-$1.9 billion in 2010 as a whole, and net profits to $175-$183.6 million. Operating profits could be from $315 to $330 million, the company predicts.

CEDC is one of Poland's leading vodka distillers and distributors. Its brands include Zubrowka, Bols, and Soplica. CEDC distributes over seven hundred brands, including Remy Martin, Jagermeister, Metaxa, Corona, Foster's, Jim Beam and Guinness. The company's shares received a listing on the Nasdaq Global Select Market in August 1999.

CEDC and Lion Capital acquired about 90% of shares in Russian Alcohol Group in July 2008. CEDC purchased 42% of shares for $181.5 million and its partner, Lion Capital, bought a controlling stake. The Polish company later reached agreement to purchase Lion's stake. CEDC also owns Parliament, a vodka distiller and the distributor of Whitehall Group products.

Russian Alcohol produces vodka brands Zelyonaya Marka, Zhuravli, Marusya, Chorny & Mikola and others, as well as pre-mixed alcoholic beverage brands VDK, Bravo, Gordon's and Doza.