Estonian beverage maker A. Le Coq boosts H1 operating profit 26.7 pct

Photo: Lugeja foto

The beverage maker AS A. Le Coq, a company of the listed Finnish Olvi Oyj group, increased its operating profit for the first half of this year 26.7 percent compared with the corresponding period in 2012 to eight million euros.

The company's net sales grew 2.7 percent to 42.1 million euros in the same comparison, whereas sales volume declined by 1.7 million liters or 2.5 percent to 67 million liters, Olvi told the stock exchange. Net sales growth outperformed volume growth thanks to improved average price.

The sales decline was due to the fact that intra-group sales contracted by 4.8 million liters. Domestic sales meanwhile increased by 2.6 million liters.

Of the improvement in operating profit 0.9 million euros was attributable to extended depreciation periods, it said.

Exports and tax-free sales by A. Le Coq increased by 16.1 percent over the preceding year and represented 4.5 percent of total sales, compared with 3.8 percent a year ago.

Olvi said A. Le Coq is the clear market leader in long drinks and juices in Estonia, whereas in beers and ciders it is in a tight struggle for the number one position, while in soft drinks it is the number two player, according to a Nielsen study for April-May 2013. The company has increased its market share in mineral waters and is equal in strength among the top three.

According to the same study by Nielsen, the sales of all beverage product groups save for mineral waters declined in the Estonian market in the first half of the year. Sales of mineral waters grew by almost 12 percent. The biggest decline was seen in beers, which fell almost nine percent. Ciders declined by roughly six percent and long drinks by three percent, and the sales of juices and soft drinks declined as well.