BBH Ukraine Posts Net Income of USD 8.5 mln in 2007

Baltic Beverages Holding Ukraine, yesterday announced IFRS financials consolidated for two of its companies in Ukraine: Slavutych (SLAV: BUY) and Lvivska Pyvovarnya. Consolidated net income made up USD 8.5 mln in 2007, sales surged 47% yoy to USD 313.8 mln, while Р•BITDA grew 60% yoy to USD 46.5 mln in 2007. BBH also noted that its share on the Ukrainian beer market expanded to 20.4% in 2007 from 17.8% in 2006. Anna Dudchenko: BBH’s market share in 2007 at 20.4% was in line with our forecast. We project financials only for Slavutych, one of the two companies in the group that is traded, which make them not directly comparable to the numbers announced by management yesterday. Given that Slavutych roughly accounts for 75% of the group’s sales, we believe that our sales projections of USD 234.5 mln (56% yoy growth) for Slavutych have been fulfilled. We reiterate our BUY recommendation on the stock.