Saku Õlletehase AS                 News Release                   Nov 30, 2005



Saku Õlletehase AS financial results for 9 months 2005



BALANCE SHEET                                                                

(In thousands)                        EEK                         €      

                            30.9.05  30.9.04 31.12.04 30.9.05 30.9.04 31.12.04

                                                                         

ASSETS                                                                       

 Cash and bank               35,789   21,018   36,461    2,287  1,343   2,330

 Trade receivables (Note 2)  59,034   36,506   43,319    3,773  2,333   2,768

 Other receivables and        5,923    9,213    6,766      379    588     432

prepayments (Note 3)

 Inventories (Note 4)       117,027  130,168  109,674    7,479  8,319   7,009

TOTAL CURRENT ASSETS        217,773  196,905  196,220   13,918 12,583  12,539

                                                                             

Non-current assets                                                           

 Long-term financial         10,120   11,778   11,029      648    753     707

investments (Note 5)

 Property, plant and        239,852  246,611  239,295   15,328 15,762  15,293

equipment  (Note 6)

 Intangible assets (Note 7)     410      342      596       27     22      38

TOTAL NON-CURRENT ASSETS    250,382  258,731  250,920   16,003 16,537  16,038

                                                                             

TOTAL ASSETS                468,155  455,636  447,140   29,921 29,120  28,577

                                                                             

LIABILITIES AND EQUITY                                                       

Current liabilities                                                          

 Debt obligations (Note 8)       95      420      140        6     27       9

 Trade payables              19,837   11,602   16,266    1,268    742   1,039

 Other payables (Note 13)     2,094    9,272      471      134    593      30

 Tax liabilities (Note 9)    27,114   21,036   23,314    1,733  1,344   1,490

 Payables to employees        3,392    2,999    3,095      217    192     198

 Other accrued expenses       7,359    7,672    3,078      470    491     196

 Short-term provisions       24,569   32,055   24,636    1,570  2,047   1,575

(Note 10)

TOTAL CURRENT LIABILITIES    84,460   85,056   71,000    5,398  5,436   4,537

                                                                             

Equity (Note 11)                                                             

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

 Statutory 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        188,070  194,032  194,032   12,020 12,400  12,401

 Net profit for the period   63,555   44,478   50,038    4,062  2,843   3,198

TOTAL EQUITY                383,695  370,580  376,140   24,523 23,684  24,040

                                                                             

TOTAL LIABILITIES AND       468,155  455,636  447,140   29,921 29,120  28,577

EQUITY

  



INCOME STATEMENT                                                       

(In thousands)                      EEK                       €        

                         January- January-        January- January-    

                        September September      September September     

                            2005   2004     2004     2005    2004    2004

Revenue                                                                   

 Sales revenue (Note 12)  498,464 416,027  530,865  31,858  26,589  33,928

 Other revenue (Note 14)      137     554      705       9      35      46

Total revenue             498,601 416,581  531,570  31,867  26,624  33,974

                                                                          

Expenses                                                                  

 Changes in work in                                                       

progress and finished

  goods inventories        -1,565  -7,581   -6,105    -100    -484    -390

 Materials, consumables   215,808 188,962  241,305  13,793  12,077  15,422

and supplies used

 (Note 15)

 Other operating expenses 113,463  96,596  125,292   7,252   6,173   8,008

(Note 15)

 Personnel expenses (Note  53,764  44,237   58,081   3,436   2,827   3,712

15)

 Depreciation and          34,413  32,749   45,025   2,199   2,093   2,878

amortization expense

 (Notes 6, 7)

 Other expenses (Note 15)   1,780   2,953    3,915     114     189     250

Total expenses            417,663 357,916  467,513  26,694  22,875  29,880

                                                                          

PROFIT FROM OPERATIONS     80,938  58,665   64,057   5,173   3,749   4,094

                                                                          

 Financial income and         301    -133       35      19      -8       2

expenses (Note 16)

                                                                          

PROFIT FOR THE PERIOD      81,239  58,532   64,092   5,192   3,741   4,096

BEFORE TAX

                                                                          

 Income tax expense        17,684  14,054   14,054   1,130     898     898

                                                                          

NET PROFIT FOR THE PERIOD  63,555  44,478   50,038   4,062   2,843   3,198

                                                                          

Basic earnings per share     7.94    5.56     6.25    0.51    0.36    0.40

(Note 17)

Diluted earnings per         7.94    5.56     6.25    0.51    0.36    0.40

share (Note 17)

     

 Review of operations and performance



In  the first nine months of 2005, Saku Õlletehase AS sold

63.0  million litres of beverages, 10.4 million litres  or

19.7% up on the same period in 2004. Revenues totalled EEK

498.6  million (€31.9 million), an EEK 82.0 million  (€5.2

million)  or  19.7% improvement on a year  ago.  The  main

growth drivers were beer and other alcoholic beverages.



According  to the Estonian Breweries Association,  in  the

first nine months of 2005 the Estonian beer market grew by

roughly  14.7%.  The  accumulated  market  share  of  Saku

Õlletehase AS was 44.9% (a year ago: 41.5%), allowing  the

company  to retain its leading position in the local  beer

market.  The  upswing in market share was triggered  by  a

successful  launch of novel high-quality AM  packaging  in

February 2005 and a new upper economy beer line Blond.  On

October  a  new  Estonian premium  beer,  Saku  Kuld   was

launched,  which  has  increased quality  brand  share  in

portfolio.



Growth  also  continued in the cider and  gin  long  drink

markets  which expanded by 13.0% and 40.7% on a  year  ago

respectively. Saku Õlletehase AS increased  its  sales  in

the  local cider and long drink markets by 7.5% and  63.4%

respectively,  its share in the cider market  shrinking  a

little (from 33.4% in 2004 to 31.9% in 2005) and its share

in the long drink market improving slightly (26.3% in 2005

against  22.5% in 2004). In autumn Saku continued  product

development  and  a new water Montavit Active  and  orange

flavoured gin long drink was launched.



Saku has renewed its canned main beer brand and started

export to Swedish market. Saku Õlletehas has forecasted to

export during last months of 2005 to  Sweden 80 000

litres, next year amount will be increased. Saku beer is

distributed in co operation of Carslberg Sverige AB.



Expenses  for  the  first nine months totalled  EEK  417.7

million  (€26.7 million), EEK 59.7 million (€3.8  million)

or 16.7% up on the same period in 2004. The largest growth

occurred  in  the  cost  of  materials,  consumables   and

supplies,  largely  on  account  of  expanded  sales   and

production volumes. Compared to a year ago, the volume  of

beverages  sold in one-way packaging (cans  and  PET)  has

grown  by 45% to 73% of sales (60% a year ago), triggering

an  increase in related materials costs. Rising  operating

volumes  and proactive marketing have magnified personnel,

transport and advertising expenses.



The growth in operating volumes and market share has had a

definite  positive impact on operating results.  With  the

growth rate of revenues surpassing that of expenses,  Saku

Õlletehase AS ended the first nine months of 2005 with  an

operating  profit of EEK 80.9 million (€5.2  million),  an

EEK 22.3 million (€1.4 million) improvement on a year ago,

and  a net profit of EEK 63.6 million (€4.1 million)  (EEK

44.5 million (€2.8 million) a year ago).





FINANCIAL RATIOS                      January-  January-

                                      September September

                                        2005      2004

                                                

Operating margin (operating profit  /     16.2%     14.1%

total revenue)

Net   margin  (net  profit  /   total     12.7%     10.7%

revenue)

Return on assets (net profit / total      13.9%     10.0%

average assets)

Return on equity (net profit /            16.7%     12.1%

average equity)

Non-current asset turnover ratio            2.0       1.6

(total revenue / average non-current

assets)

Total assets turnover ratio (total          1.1       0.9

revenue / average total assets)





Additional information:

Liia Rikson

Assistant of executive board

+372 6 508 301