Saku Õlletehas                FINANCIAL RESULTS                 05/29/2002



FINANCIAL RESULTS, Q1 2002



Saku Brewery Group ended the first quarter with net sales of

EEK  136.1m  (EUR 8.7m), a 7 percent increase  on  the  same

period  of  2001.  The contribution of self-produced  beers,

cider and returnable bottles increased. In the local market,

sales of canned products and multipacks continued climbing.

Operating  profit  for  the first quarter  amounted  to  EEK

730,000  (EUR  47,000), an improvement of EEK  1.2m  as  the

first  quarter of 2001 ended with an operating loss  of  EEK

505,000  (EUR 32,000). Profitability improved because  sales

strategies  were  adjusted to seasonal fluctuations  in  the

sales of different product groups.

In quantitative terms, sales amounted to 9.6 m litres, a 3.4

percent  increase  on  the first quarter  of  2001.  Exports

accounted  for  8  percent of the  total.  The  main  export

markets   were   Finland,  Latvia  and  Lithuania.   Smaller

quantities  were  exported to the  USA  and  Japan.  Results

improved, above all, on account of an increase in the  sales

of the Rock line and soft drinks.

In April, sales of self-produced beers shot up in connection

with  the  renewal  of  the  Brewery’s  primary  brand  Saku

Originaal,  and the month ended with sales of  4.7m  litres.

Revitalisation  of  the brand led to a  more  than  two-fold

increase  in Saku Originaal bottles product sales,  compared

to March, and a 42 percent increase on the figure attained a

year ago. The upgrading of Saku Originaal allowed Saku beers

to  increase their share in the segment of premium beers  to

almost 70 percent.

In  the  first  quarter of 2002, Saku Brewery increased  its

market  share  to  45 percent, an increase of  a  percentage

point  on  the  same period of 2001. In April the  company’s

market  share increased by a further 3 percentage points  to

48  percent,  an improvement of a percentage  point  on  the

corresponding period of 2001.

In the Estonian beer market, demand varies by season. In the

first  quarter  the best sales results are attained  in  the

sector  of  extra strong and low price beers, in the  second

and third quarters in the sector of premium beers and in the

fourth  quarter also in the sector of extra strong  and  low

price  products including seasonal groups of  wintertime  as

porters  and dark beers. Saku Brewery has positioned itself,

above  all,  as a producer of premium beers. Therefore,  the

largest  sales are always attained and market  share  always

increases in the second and third quarters, which  are  high

season  for  premium beers, and in the fourth  quarter  when

porters and dark beers rise. The segment of premium beers is

going  to be a growing market in Estonia and a product group

is profitable.

Saku  Brewery’s expenses for the first quarter  amounted  to

EEK  136.9m (EUR 8.7m), 5 percent up on a year ago. Expenses

grew mostly on account of an increase in input costs such as

materials, power and services. Personnel expenses  increased

in  connection  with  a scheduled adjustment  of  wages  and

salaries, which was conducted at the beginning of 2002  with

a view to ensuring their competitiveness.

On  31  March 2002, the Brewery’s total assets stood at  EEK

401,458,000 (EUR 25,657,000), a figure comparable to the one

of a year ago.

The main financial ratios were the following:



                              2002   2001

                             first  first

                               3      3

                             months months

Operating profit to net      0.5 %  -0.4 %

sales

Net profit to net sales      0.5 %  -0.5 %

Average debtors’ days          20     19

Average creditors’ days        15     12

Inventory turnover ratio      1.6    1.4

Current ratio                 3.3    3.7

Quick ratio                   1.1    1.1

Debt ratio                   12.2 % 11.3 %

Return on assets             0.17 % -0.17

                                      %

Return on equity             0.19 % -0.19%

Non-current asset turnover    0.5    0.5

ratio

Total asset turnover ratio    0.3    0.3

                              

In  2002  Saku Brewery will continue investing in production

facilities and development of the organisation. At  the  end

of  the  first  quarter,  additions to  non-current  assets,

investments  in  progress  and prepayments  for  non-current

assets  totalled  EEK 15.6m (EUR 995,000).  All  investments

were internally funded. To date, the company has invested in

additional  lab equipment, new bottle filling equipment  and

fermenting tanks (April) and development of the can  filling

line  (May).  The  objective  of  investment  is  to  ensure

sufficient  output for the summer season and stable  quality

in combination with high operating efficiency.



                                               



                                                                 

CONSOLIDATED BALANCE SHEET                                       

(In thousands)                  EEK                EUR           

                    31.3.02  31.3.01  31.12.01  31.3.02 31.3.01 31.12.01  

                          

                              Adjuste Adjuste        Adjuste Adjuste

                                   d**     d*             d**     d*

ASSETS                                                           

Cash and bank          3 227  4 400  20 199    206     281  1 291

Shares and other              3 908   3 907            250    250

securities

Trade receivables     30 422 24 561  29 157  1 944   1 570  1 863

(Note 2)

Other receivables      3 794  1 386   2 100    243      88    134

and prepayments

(Note 3)

Inventories (Note 4)  92 283 95 087  77 441  5 898   6 077  4 949

TOTAL CURRENT ASSETS 129 726 129 342 132 804  8 291   8 266  8 487

                                                                 

Non-current assets                                               

Long-term financial   16 718 13 800  17 300  1 068     882  1 106

investments (Note 5)

Long-term                164    335     186     10      21     12

receivables (Note 6)

Intangible assets        674    184     747     43      12     48

(Note 7)

Tangible assets      254 176 243 284 249 142 16 245  15 549 15 923

(Notes 7, 8)

TOTAL NON-CURRENT    271 732 257 603 267 375 17 366  16 464 17 089

ASSETS

TOTAL ASSETS         401 458 386 945 400 179 25 657  24 730 25 576

                                                                 

LIABILITIES AND                                                  

EQUITY

Current liabilities                                              

Debt obligations       1 580  1 557   1 714    101     100    110

(Note 8)

Trade payables        23 585 17 279  22 314  1 507   1 104  1 426

Payables to the          563    818             36      52       

parent

Tax liabilities       11 426 13 308  12 123    730     851    775

(Note 9)

Payables to            2 590  2 446   3 329    165     156    213

employees

Other accrued         41 028  1 879     379  2 622     120     24

expenses

TOTAL CURRENT         80 772 37 287  39 859  5 161   2 383  2 548

LIABILITIES

                                                                 

Non-current                                                      

liabilities

Non-convertible debt   3 106  3 885   3 412    199     248    218

(Note 8)

                                                                 

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  184 838 214 362 169 786 11 813  13 700 10 851

Profit for the           672   -659  55 052     43     -42  3 518

period

TOTAL EQUITY         317 580 345 773 356 908 20 297  22 099 22 810

TOTAL LIABILITIES    401 458 386 945 400 179 25 657  24 730 25 576

AND EQUITY

                                                                 

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

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

and the accounting for kegs.

                                                                 



CONSOLIDATED INCOME                                                      

STATEMENT

(In thousands)                      EEK                     EUR           

                                                                        

                        January- January- 2001   January-January-  2001

                          March   March           March  March          

                          2002     2001           2002    2001          

                                 Adjusted Adjusted*      Adjusted Adjuste

                                      **                   **         d*

Revenue                                                                 

Net sales (Note 10)      136 148 127 128 745 937  8 701    8 125  47 674

Change in work in progress and                                          

finished goods             1 142   2 449     555     73      156      35

inventories

Other revenue (Note 12)      340     176     660     22       11      42

Total revenue            137 630 129 753 747 152  8 796    8 292  47 751

                                                                        

Expenses (Note 13)                                                      

Materials, consumables    89 038  84 385 477 494  5 690    5 393  30 517

and supplies

Other operating           24 014  22 752 115 920  1 535    1 454   7 409

expenses

Personnel expenses        12 131  11 330  48 097    775      724   3 074

Depreciation              10 514  10 504  42 831    672      671   2 738

Other expenses             1 203   1 287   6 761     77       82     432

Total expenses           136 900 130 258 691 103  8 749    8 324  44 170

                                                                        

OPERATING PROFIT/LOSS        730    -505  56 049     47      -32   3 581

                                                                        

Financial income (Note        98      75     433      6        5      28

14)

Financial expenses           156     229   1 430     10       15      91

(Note 14)

                                                                        

PROFIT BEFORE TAXES          672    -659  55 052     43      -42   3 518

Income tax expense                                                      

PROFIT FOR THE PERIOD        672    -659  55 052     43      -42   3 518

Basic earnings per          0,08    0,00    6,88   0,01     0,00    0,44

share (Note 15)

Diluted earnings per        0,08    0,00    6,88   0,01     0,00    0,44

share (Note 15)

                                                                        

                                                                        

** - Adjusted for the change in the                                     

accounting for kegs.

*  - Adjusted for the change in the valuation of                        

finished goods and the accounting for kegs.





Kristina Seimann

PR manager

+372 6508 303