SAKU ÕLLETEHAS

COMMENTARY TO FINANCIAL RESULTS



COMMENTARY TO FINANCIAL RESULTS, H1 2000



Sales results



In H1 2000 Saku Õlletehas sold more than 26 million liters of beverages, 

providing 4% annual increase.



Compared to H1 1999, the sales volume of Saku beers remained on approximately 

same level (22.6 liters). Saku market share stood at 49% (2% y-o-y drop), 

thus being the largest beer producer in Estonia.



Sales of mineral water and soft drinks grew in H1. In the first half year the 

company sold more than 2 million liters of mineral water Vichy Classique, 

which is 7% more than in H1 1999. In H1 Saku sold 970 thousand liters of 

Pepsi drinks, which is 2.5 times more than in H1 1999. Increased sales of 

Pepsi drinks are mainly due to transfer of sales responsibility for Pepsi 

beverages to Saku Õlletehas in the beginning of this year, along with more 

targeted sales and marketing support activities.



Relatively modest increase in sales and consumption of beer, mineral water 

and soft drinks in Estonia were mainly due to cooler than average weathers in 

this spring and summer.





Financial results



Currently only the group's parent company, Saku Õlletehase AS, operates 

actively. 



In H1 2000 Saku Õlletehas group net sales amounted to EEK 365.9 mln, 

providing EEK 20.8 mln or 6% annual increase. The group's expenses (EEK 332.8 

mln) increased 8%.



The group's operating profit amounted to EEK 38.6 mln, remaining unchanged 

from H1 1999. The group's H1 net profit was EEK 39.2 mln (26.6% increase from 

H1 1999). In H1 the group's earnings per share were EEK 4.91 (26.9% increase 

from H1 1999.



As changes were made to the Estonian income tax law, effective as of 

01.01.2000, the profit figures of H1 2000 are not comparable with the 

respective results from H1 1999.





Ruth Roht

Public Relations Manager

+372 65 08 303