Net profit for Russia's Baltika Breweries, which belongs to Carlsberg Group, fell 18% in 2010 to 19.171 billion rubles ($654 million) to IFRS, Baltika said on Monday.
Revenue fell by 15.4% to 79.307 billion rubles.
Sales volume amounted to 37.6 million hectoliters last year, a 12.0% fall on 2009.
Gross profit fell by 11.9% to 45.145 billion rubles, operating profit slumped 20.2% to 23.631 billion rubles. Gross margin grew by 2.2% to 56.9%, while operating margin slipped 1.8% to 29.8%, the company said.
Baltika blamed the poor financial results on the fall in sales.
"Nevertheless, despite the decline, investment in product promotion increased and the company successfully maintained high profitability, demonstrating an ability to manage fixed costs whilst operating within a highly volatile market due to ongoing efforts to improve efficiency and high level of control of expenses in all areas of the company's activities. For example, in the reporting period, administrative costs were reduced by 4%," Baltika said.
"In 2010, company sales abroad increased by 19% compared to 2009, exceeded 3.3 million hectoliters and accounted to 9% of total volumes. International sales of the Baltika brand amounted over 60% of the company's total sales abroad."
MOSCOW, February 21 (RIA Novosti)
