Saku Õlletehas                FINANCIAL RESULTS                 08/23/2002



2002 FIRST 6 MONTHS RESULTS



Saku Brewery finished the first six months of 2002 with an

operating  profit of EEK 26.9 million (EUR 1.7  million),

an  improvement on the EEK 25.5 million (EUR 1.6 million)

attained a year ago.

Net sales reached EEK 372.4 million (EUR 23.8 million), a 7

percent  increase on the corresponding  period  of  2001.

Sales of imported and self-produced beers and soft drinks

improved and sales of can-products continue to grow.

Saku Brewery is the biggest beer producer in Estonia, 

total beer sales  from January to June reached 23,7 m 

litres,  a  4% increase  on the corresponding period 2001. 

Besides  beer

products Saku Brewery sells sider, mineral water and soft

drinks.  Since  III  quarter  also  gin  long  drink   is

available.  Saku  Brewery  total  sales  reached  26,9  m

litres,  a  4%  increase on the corresponding  period  of

2001.  The priority of Saku Brewery is beer products  and



to  hold stable leading position in Estonian beer market.

Saku  Brewery is the leader of the Estonian beer  market.

According  to  Estonian beer producers,  in  January-June

2002  Saku  Brewery  controlled in  cumulative  terms  46

percent  of the local beer market. In July, our  position

improved by a further half of a percentage point to  46.5

percent.  Tartu Brewery retained the 38 percent  attained

in  June  and Viru Brewery lost half a percentage  point,

dropping  to  4  percent. Pärnu Brewery  and  Viru-Nigula

Brewery   upheld  their  3.5  percent   and   2   percent

respectively. In July imports accounted for 6 percent  of

the Estonian beer market.

Sales improved first and foremost on account of an 

increase in the

sales of the two main brands Saku Originaal and Rock. The

renewal  of Saku Originaal, which was launched in  April,

increased  the  sales  of its bottled  version  within  a

couple  of  months (April, May) 17 percent compared  last

year same period and contributed Saku Brewery`s share  in

premium  beer  segment  until 70 percent.  Gradually  the

packaging of the whole blue Saku line will be renewed  in

line with the revitalisation of the core brand.

The sales of the Rock line grew during first six months 

by 20% percent  compared  last  year  same  period, 

largely  on account of sales campaigns.

The launch of the international beer brand Carlsberg 

in 0.5-litre returnable bottles by Saku Brewery was 

highly successful. To  date  the  new product has seized 

20 percent  of  the imported beer market.  Goal is to get 

second position  to Carlsberg in Estonian imported beer 

market during a year. Sales of canned products grew above 

all thanks to the upgrading of

the  canning  line, implementation of a new can  and  the

launch  of new sixpacks, which are supplied with handles,

at  the  beginning of the high season. The  results  were

further improved by the launch of KISS in 0.5-litre cans,

which  increased the cider’s market share in  June  by  5

percentage points to 22 percent.

In the first six months of 2002 Saku Brewery continued 

to produce canned products under contracts and to 

supply Latvian and Lithuanian breweries with cider.

The group’s expenses totalled EEK 349.1 million (EUR 22.3

million),  an increase of 7 percent. The growth  results,

above all, from changes in the prices of materials, power

and services. Personnel expenses increased on account  of

an  adjustment of wages and salaries, which was conducted

at the beginning of 2002 to ensure competitiveness.

On 30 June 2002, total assets stood at EEK 435.9 million 

(EUR 27,900), a 9 percent increase on the end of 2001.

The period’s financial ratios break down as follows:

                              2002   2001

                             first  first

                               6      6

                             months months

Operating profit to net      7.2 %  7.3 %

sales

Net profit to net sales      7.0 %  7.1 %

Average debtors’ days          20     21

Average creditors’ days        14     12

Inventory turnover ratio      4.6    4.0

Current ratio                 2.1    2.5

Quick ratio                   0.8    0.9

Debt ratio                   20.2 % 18.1 %

Return on assets             6.2 %  6.2 %

Return on equity             7.5 %  7.3 %

Non-current asset turnover    1.3    1.3

ratio

Total assets turnover ratio   0.9    0.9

The period’s largest investments were directed at 

upgrading the production  facilities and developing  

the  organisation.

The  objective  of production-related investment  was  to

sustain  top  quality in combination with high  operating

efficiency.   The   period’s   accomplishments    include

upgrading  of  the  filling lines, and implementation  of

fully  electronic equipment for packaging the  multipacks

and  additional  lab  equipment. Altogether,  investments

amounted to EEK 43.6 million (EUR 2.8 million).







CONSOLIDATED BALANCE SHEET                                                 

(In thousands)                           EEK                       EUR     

                            30.6.02 30.6.01 31.12.01  30.6.02 30.6.01 31.12.01

                                   Adjusted Adjusted         Adjusted Adjusted

                                          **        *               **       *

                                                                        

ASSETS                                                                     

Cash and bank                  2,611   2,252   20,199      167     144  1,291

Shares and other securities            3,907    3,907              250    250

Trade receivables (Note 2)    52,634  50,585   29,157    3,364   3,233  1,863

Other receivables and          6,374   1,249    2,100      407      80    134

prepayments (Note 3)

Inventories (Note 4)          85,712  86,216   77,441    5,478   5,510  4,949

TOTAL CURRENT ASSETS         147,331 144,209  132,804    9,416   9,217  8,487

                                                                           

Non-current assets                                                         

Long-term financial           16,367  14,400   17,300    1,046     921  1,106

investments (Note 5)

Long-term receivables (Note6)    142     283      186        9      18     12

Intangible assets (Note 7)       601     345      747       38      22     48

Tangible assets (Notes 7,8)  271,505 253,134  249,142   17,352  16,178 15,923

TOTAL NON-CURRENT ASSETS     288,615 268,162  267,375   18,445  17,139 17,089

TOTAL ASSETS                 435,946 412,371  400,179   27,861  26,356 25,576

                                                                           

LIABILITIES AND EQUITY                                                     

Current liabilities                                                        

Debt obligations (Note 8)     31,962  24,777    1,714    2,042   1,583    110

Trade payables                32,451  26,519   22,314    2,074   1,695  1,426

Payables to the parent           845     818                54      52     

Tax liabilities (Note 9)      24,427  23,939   12,123    1,561   1,530    775

Payables to employees          3,410   3,093    3,329      218     198    213

Other accrued expenses         1,497   3,005      379       95     192     24

TOTAL CURRENT LIABILITIES     94,592  82,151   39,859    6,044   5,250  2,548

                                                                           

Non-current liabilities                                                    

Non-convertible debt (Note 8)     2,726   3,649    3,412   174     233    218

                                                                           

Equity                                                                     

Share capital                 80,000  80,000   80,000    5,113   5,113  5,113

Capital reserve                8,000   8,000    8,000      511     511    511

Other reserves                44,070  44,070   44,070    2,817   2,817  2,817

Accumulated profits          180,441 169,786  169,786   11,532  10,851 10,851

Profit for the period         26,117  24,715   55,052    1,670   1,581  3,518

TOTAL EQUITY                 338,628 326,571  356,908   21,643  20,873 22,810

TOTAL LIABILITIES AND        435,946 412,371  400,179   27,861  26,356 25,576

EQUITY                                                               

                                                                           

** - Adjusted for the change in the accounting for kegs.

*  - Adjusted for the change in the valuation of finished goods and

accounting for kegs.

                                                                            







CONSOLIDATED INCOME                                                         

STATEMENT

(In thousands)                            EEK                      EUR      

                                                                           

                            January- January-    2001 January- January- 2001

                                June    June             June     June      

                                2002    2001             2002     2001      

                                    Adjusted Adjusted        Adjusted Adjusted

                                          **        *              **      *

Revenue                                                                    

Net sales (Note 10)          372,380 346,910  745,937  23,799  22,172 47,674

Change in work in progress                                                 

and

finished goods inventories     3,171   5,162      555     203     330     35

Other revenue (Note 12)          463     311      660      30      20     42

Total revenue                376,014 352,383  747,152  24,032  22,522 47,751



Expenses (Note 13)                                                         

Materials, consumables and   236,170 222,077  477,494  15,094  14,193 30,517

supplies                                                                 

Other operating expenses      60,732  56,845  115,920   3,882   3,633  7,409

Personnel expenses            26,309  23,530   48,097   1,681   1,504  3,074

Depreciation                  21,314  21,333   42,831   1,362   1,363  2,738

Other expenses                 4,612   3,103    6,761     295     198    432

Total expenses               349,137 326,888  691,103  22,314  20,891 44,170

                                                                           

OPERATING PROFIT              26,877  25,495   56,049   1,718   1,631  3,581

                                                                           

Financial income (Note 14)       105     110      433       7       7     28

Financial expenses (Note 14)     865     890    1,430      55      57     91

                                                                           

PROFIT BEFORE TAXES           26,117  24,715   55,052   1,670   1,581  3,518

Income tax expense                                                         

PROFIT FOR THE PERIOD         26,117  24,715   55,052   1,670   1,581  3,518

Basic earnings per share        3.26    3.09     6.88    0.21    0.20   0.44

(Note 15)

Diluted earnings per share      3.26    3.09     6.88    0.21    0.20   0.44

(Note 15)

                                                                           

** - Adjusted for the change in the                                        

accounting for kegs.

*  - Adjusted for the change in the valuation of finished goods and        

accounting for kegs.





Kristina Seimann

PR Manager

+372 6 508 303