Beluga : Financial Results for 2023

Novabev Group (MOEX: BELU), the leading alcohol company in Russia, announces the IFRS consolidated financial results for 2023: revenue increased by 20% to 116.9 billion rubles, gross profit grew by 13% to 43.3 billion rubles, EBITDA showed +11% dynamics and amounted to 19.3 billion rubles, net income decreased slightly by 4% to 8.1 billion rubles. When eliminating one-time income and expenses in 2022 and 2023 that are not related to ordinary business activities, the dynamics of net profit for 2023 will be positive.

Financial highlights and main corporate events:

	2023
Sales in volume terms (million 9L cases)	18.9 (+1%)
Revenue (mln rubles)	116,888 (+20%)
Gross profit (mln rubles)	43,270 (+13%)
Operating profit (mln rubles)	13,934 (+7%)
EBITDA (mln rubles)	19,284 (+11%)
Net income (mln rubles)	8,064 (-4%)
Earnings per share (rubles)	687 (+7%)

The successful focus of the business on the Russian market ensured stable results in 2023. Total sales increased by 1% and approached 19 million 9L cases. In Russia, the fastest growing own brands are Beluga, Orthodox, Snow Owl vodkas, Green Baboon gin and Tête de Cheval and Golubitskoe Estate wines, while the fastest growing imported brands are Barceló and Plantation rums, Noy Armenian brandy as well as the wine portfolio. All of these brands are in high-margin segments - premium and above - which has a positive impact on financial performance.

WineLab's own retail chain made a significant contribution to the year's results through further quantitative and qualitative development in priority regions. The scale increased by 23% over the year. Sales volume grew +35% and traffic +21%. Like-for-like sales were up 11.9%, traffic was up 3.5% and average ticket was up 8.1%. Online sales through the click & collect system more than doubled and e-commerce accounted for 10% of chain's total sales. Delivery service and product availability have been significantly improved. The WinClub loyalty program was extended to all regions of WineLab's presence, the number of its members exceeded 7 million, and at the end of December the group's own retail chain was once again included in the top 3 chains with the best loyalty programs, according to the INFOLine agency.

In 2023, the focus was on distribution development, capacity expansion at a number of distilleries, productivity improvements, the introduction of new flavors in high-margin brand lines, and work on product quality, plant efficiency, workplace safety and retention of top talent.

The Board of Directors pays attention to the investment attractiveness of the company. In accordance with the policy, dividends have been paid for 2022 and interim dividends for the first half and third quarter of 2023.

In March, Expert RA Agency confirmed the company's credit rating at the level of ruAA- with a stable outlook.

The company continues to adapt to new market realities and evolve in a highly competitive environment. Due to its strategic vision, innovative approaches, established partnerships and, of course, an efficient team led by experienced top management, Novabev Group remains a key player in the industry. In 2024 there are new challenges, perspectives and goals. The group's activities will be focused on launching innovative products and services, developing retail and e-commerce, improving customer service and strengthening its position in the country.

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