Download - Kompania Piwowarska SA

Warszawa, May 16th, 2008
Annual Results Announcement
KOMPANIA PIWOWARSKA DELIVERED
STRONG VOLUME AND MARKET SHARE GROWTH
Sales and market share
Kompania Piwowarska (KP) achieved strong sales growth in the F08 fiscal year (1 st of April 2007 to
31st of March 2008). Domestic sales volumes amounted to 14.5 million hectolitres, representing
growth of 12.0 % (up from 12.9 million hectolitres in F07). The 14.5 million hectoliters figure includes
sales of Browar Belgia acquired in January 2008 for the period of first three months of 2008. The
organic growth (i.e. excluding Browar Belgia sales) amounted to 11.4%. With the total domestic
market estimated at 35.4 million hectolitres, Kompania Piwowarska market share was 40.8 %, up from
38.7% in F07. Thus Kompania Piwowarska growth was almost double the industry volume growth of
6.1%.
Managing Director comment
Providing a summary of the recent performance, Dieter Schulze, the Managing Director of Kompania
Piwowarska said: “The main drivers of the strong KP sales growth have been the continuous
improvement in management practices throughout the whole company and enhanced understanding
of consumer needs supported with marketing excellence. These developments have been
underpinned by the continued growth of the Polish economy and reasonable pricing strategy against
moderate inflation levels and strong raw materials and packaging cost pressure”.
“With continuous market growth Polish consumers have drunk an average of 93 litres per capita per
annum thus making Poland one of the leading European and, as a matter of fact, global beer markets.
The current growth trends are expected to continue and this will enable us to continue our support for
the Polish national football team with its famous coach and the Polish Olympic team but also our CSR
programs supporting the reduction in poverty and social exclusion,” Dieter Schulze said.
Brand portfolio and brand performance
All KP brands achieved significant sales and market share growth with Żubr and Lech achieving
double digit sales growth (17% and 11% respectively).
Tyskie, the best selling Polish beer brand, increased its market share up to 16.4%, achieving strong
growth of 8.5 % off a very high base. The communication of Tyskie brand corresponded strongly with
consumer expectations and included the brand’s engagement in supporting the Polish national football
team and its coach Leo Beenhakker. The brand proved close and relevant to consumers through
many other activations including numerous summer events held across the whole country providing
unforgettable experience for as many as 400 thousand consumers.
Żubr remained # 2 Polish beer brand, while Lech attracted consumers to its unique brand world
associated with good company, partying and music.
KP’s offering for female consumers, Redd’s, continued to be the flavored beer segment leader with
ca. 58 % share of this segment.
Financial results
Kompania Piwowarska delivered a strong profit growth in the fiscal year F08 with revenues up 14.7 %
and net profits up 14 %. Kompania Piwowarska remained one of the top contributors to the fiscus, with
total taxes paid in F08 of over PLN 1.3 billion.
Investment program
Increased demand for KP brands has prompted a number of capacity extension investments. In F08
Browar Belgia (now Browar Kielce) with a production capacity in excess of 1 million hectoliters has
been acquired and integrated into the existing production footprint consisting of breweries in Tychy,
Poznań and Białystok.
The investment program included also extending capacity in Tychy and resulted in increasing the total
KP annual capacity to the level of 17 million hectoliters. Considerable resources have been deployed
to support Kompania Piwowarska brands in the marketplace.
Exports growth
The unchallenged leader of the Polish beer exports has been in F08 Tyskie, the best selling Polish
beer brand, with the estimated share of all Polish beer exports of 14.7%. Total KP exports have grown
by 67%, up to 345 thousand hectoliters with main exported brands being Tyskie and Lech, while the
total KP estimated share of Polish beer exports have amounted to 26% (almost double that of the
nearest competitor). The key export markets were the UK, Germany, Ireland, the United States and
Canada.
SABMiller plc F08 financial results
This has been another year of strong growth for the group. This strong result for the year has been
achieved despite challenging comparative growth rates across a number of markets in the prior year
and a substantial rise in input costs for the group as a whole. Total beverage volumes were up 6%, to
288 million hl and total lager volumes were up 11% to 239 million hl,
including the impact of acquisitions in China and Europe. A 15% increase in group revenue translated
into EBITA growth of 15% to US$4,141 million, or 9% on an organic constant currency basis. This
reflects the benefit of price increases, mix improvements and productivity gains, all of which have
offset the rise in input costs, in addition to favourable currency rates against the US dollar. The group’s
ability to recover these higher costs underlines the strength of its brands and its operational capability
in enhancing net revenue per hectolitre through effective control of package mix and portfolio pricing.
The group EBITA margin remained
level with the prior year at 17.4%. Earnings benefited from currency strength and lower effective tax
rates in certain jurisdictions.
SABMiller Europe performance
The group’s business in Europe delivered excellent performance, with organic lager growth of 8%, and
EBITA growth of 15% in organic constant currency and 30% on a reported basis. Strong volume
growth in Poland, Romania and Russia was complemented by market share gains in several
countries. Price increases, mix improvements and the introduction of new products and packs,
assisted by operational efficiencies, offset significant brewing raw material and packaging cost
increases.
Kompania Piwowarska - leader of the Polish beer industry
Kompania Piwowarska is the largest brewer in Poland. Hundreds of years of experience in beer
brewing, state-of-the-art technology and rigorous adherence to the World Class Manufacturing
principles guarantee the highest quality beer. The company's product portfolio includes TYSKIE Poles' favourite beer, ŻUBR - the second largest Polish beer brand, LECH, Dębowe Mocne, Pilsner
Urquell, Redd's, Dog in the Fog, Peroni Nastro Azzurro and Miller Genuine Draft. Kompania
Piwowarska was established in 1999 as a result of a merger of Tyskie Browary Książęce and Lech
Browary Wielkopolski. In 2003 Dojlidy Brewery in Białystok was acquired by KP and in 2008 a brewery
in Kielce. In the fiscal year F08, ended on 31 March 2008, KP sales volume amounted to 14.5 mill
hectolitres.
SABMiller – one of the largest brewers in the world
Kompania Piwowarska is part of one of the world's largest brewing groups - SABMiller plc. SABMiller
plc is one of the world's largest brewers with brewing interests or distribution agreements in over 60
countries across six continents. The group's portfolio of over 150 brands includes world-renowned
international names and established local brands recognized for their superior quality and brewing
excellence (Miller Genuine Draft, Grolsch, Peroni Nastro Azzurro and Pilsner Urquell). The company is
also one of the largest Coca Cola bottlers outside the US. In the fiscal year F08 ended on 31 March
2008 SABMiller generated sales worth $21.4 billion and profit before taxation of $3.2 billion. Sales
volume amounted to 239 mill hectolitres.
Further enquiries:
Paweł Kwiatkowski
Corporate Affairs Director, the company spokesman
KOMPANIA PIWOWARSKA SA
11 Szwajcarska St., 61-285 Poznań
Tel. +48 61 8787 881
Fax +48 61 8787 850
Cell phone +48 601 599 198
[email protected] www.kp.pl