NovaBev Group (formerly Beluga Group)

Beluga Group (PJSC Beluga Group) is a Russian alcohol company that produces and sells alcoholic beverages in Russia and abroad.

Illustration: kommersant.ru

BELUGA GROUP produces products at 6 of its own factories and the Golubitskoye Estate winery, some of which have centuries of production traditions.

In addition, BELUGA GROUP is one of the largest importers of strong alcohol in the country. Partners include William Grant & Sons and the French cognac house Camus. The company also exclusively presents wines in Russia from iconic producers from France, Italy, Spain, Germany, the USA, South Africa and other countries, including Torres, Masi Agricola, Faustino, Cono Sur, Calvet, Piccini, Barefoot.

Performance indicators

2023: Revenue growth by 20% to RUB 116.9 billion

The net profit of the alcohol manufacturer Novabev Group according to international financial reporting standards (IFRS) for 2023 amounted to 8.1 billion rubles. This is 4% less than a year earlier. This was announced on March 14, 2024 by TASS.

At the same time, the company's revenue for the same period increased by 20% to 116.9 billion rubles. Gross profit of the group increased by 13% to 43.3 billion rubles. EBITDA rose 11% to 19.3 billion rubles. The company's net debt in 2023 increased by 29% to 32.1 billion rubles. This is explained, first of all, by the debt on rental payments caused by the growth of the Vinlab network.

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According to the company, when excluding income and expenses not related to ordinary activities, the company has a positive trend in net profit.

The main drivers of revenue growth were an increase in shipments of brands from the premium segment and above in Russia, as well as the development of a premium import portfolio. In addition, revenue growth was influenced by the growth of the Vinlab network, whose revenue increased by 35%, the scale of the network increased by 23%.

The Novabev Group company owns five distilleries, one alcohol factory, the Golubitskoye Estate wine farm, and the Vinlab retail chain.

The company's key own brands are Beluga vodka, Belenkaya vodka, Myagkov and Arkhangelskaya. In addition, the company owns the Golden Reserve cognac brand, Fox & Dogs whiskey, Golubitskoe Estate wine, Tete de Cheval sparkling wine, as well as several brands of other strong alcohol (gin, rum).^[1]

2022: Revenue growth by 30% to RUB 97.31 billion

At the end of 2022, Beluga Group raised 97.32 billion rubles, which is 30% more than a year earlier. The net profit of the Russian manufacturer of alcoholic beverages during this time rose by 119% and reached 8.44 billion rubles. The company released such data on March 10, 2023.

According to materials presented on the Beluga Group website, the total shipments of alcohol from the company in 2022 reached 16.8 million decaliters, exceeding the 2021 figure by 7%. Sales growth was observed both in the group of brands of own production - 13.9 million decalitres (+ 5.4%), and imported - 2.9 million decalitres (+ 13.8%). The categories of tinctures, whiskey, gin and rum showed the greatest dynamics. Brands of high-margin segments - premium and above - continue to strengthen their positions, which has a positive effect on financial performance, according to a press release.

Beluga Group financials

The qualitative result was achieved thanks to a vertically built business model that controls all stages from production to product sales, the company's focus on operational efficiency, strong brands, including both popular and new ones - from previously unrepresented regions and countries, as well as a wide distribution system that includes its own retail network "VinLab," - said in Beluga Group.

By the end of 2022, the number of VinLab stores reached 1,350 outlets, sales grew by 52.3%, and the average check - by 11.1%. Sales of alcohol by prior order on the VinLab website increased by 115%.

It is also reported that the long-term obligations of Beluga Group as of December 31, 2022 amounted to 29.11 billion rubles against 19.03 billion rubles a year earlier, short-term - 38.64 billion rubles against 33.37 billion rubles, respectively.^[2]

2020: Revenue growth by 23%, to 63.29 billion rubles

Beluga Group's revenue in 2020 reached 63.29 billion rubles, an increase of 23% compared to 2019. Net profit increased by 72%, amounting to 2.46 billion rubles.

The largest Russian alcohol company associated the rise in revenue with an increase in shipments of products in physical terms by 11%, as well as the growth of the VinLab retail chain.

The largest alcohol company in Russia increased revenue by 23% in 2020

At the end of 2020, Beluga Group sold alcohol in the amount of 15.6 million decaliters, which is 11% higher than a year ago.

The group said in a statement that in 2020 the company demonstrated sustainable development, double-digit growth in shipments and strong financial results, despite the unfavorable situation. As the chairman of the board of the company Alexander Mechetin noted, the decline in sales caused by the lockdown was compensated by an increase in home consumption. High performance was achieved thanks to the business model, combining the production of a wide range of brands, large-scale distribution and its own specialized retail "VinLab."

The VinLab network showed the greatest dynamics among the group's business segments, its share in revenue reached 34%. In 2020, the number of VinLab stores exceeded 640 points, sales grew by 48%, while like-for-like sales showed + 23%% dynamics. The volume of Internet sales on the click & collect system for the year increased fivefold (absolute indicator is not given).

By the end of 2020, the group's net debt amounted to 12.41 billion rubles, having decreased by 11% compared to the previous year. Total debt obligations (loans and bonds) increased by 15.2%, to 17.3 billion rubles.^[3]

The growth of Beluga Group shares at the Moscow Exchange exceeded 20% (up to 2599 rubles apiece) after the publication of the company's financial report.

History

2023: Change of name to NovaBev Group

In August 2023, Beluga Group changed its name to NovaBev Group. This is reflected on the company's website, where it is already named in a new way. It is noted that the prerequisites for this were several factors.

With the evolution of the company, the existing name ceased to reflect its essence and versatility, as well as comply with the business diversification strategy. Today, the activity is based on an innovative vertically integrated business model that unites production, distribution and retail in one company, which in conjunction create a synergistic effect, strengthening each other, - said in a press release in early August 2023.

2022

Ending the year with record alcohol supplies

In 2022, the Beluga Group holding delivered 16.8 million decaliters of alcohol, which is 6.8% more than a year earlier. This figure for the group turned out to be a record.

The Beluga Group said that its own brands in 2022 supplied 13.9 million decaliters of products (+ 5.4% by 2021), and partners - 2.9 million decaliters (+ 13.8%).

Beluga Group ends year with record alcohol supply

Among the products produced by the company, the greatest dynamics in Russia was shown by the brands of Beluga vodka (+ 36%), Orthodox (+ 25.3%), PARKA (+ 21.3%) and Arkhangelskaya (+ 12.6%), cognacs Tiflis Treasure (+ 32.5%) and Golden Reserve (+ 7.2%), Beluga Hunting bitters (+ 27.3%), Fox & Dogs whiskey (+ 55.4%) Babwing + 182.3%)

In the portfolio of imported brands, the largest growth rates were the Roma Barcelo (+ 44%) and Plantation (+ 160.3%), cognac "Noah" (+ 27%), as well as a collection of imported wines (+ 16%). In the mid-price segment, vodka "Russian Ice" (+ 32.9%) and cognac "Ardeli" (+ 9.6%) showed confident results.

In 2022, the development of the WineLab drinks supermarket chain continued. The number of outlets for the period reached 1,350, thus, its scale increased by 35% over the year, new stores were opened mainly in Moscow, the Moscow region and St. Petersburg. Sales volume increased by 52.3% compared to last year, traffic by 37.1%, like-for-like-sales by 8.3%, and the average check by 11.1%. The e-commerce sector available in the alcohol sector of Russia through the click & collect system continues to develop: the volume of e-com sales increased by 115%, and the number of orders by 171%, thus, more than 1.2 million online orders were issued.

In a volatile 2022, BELUGA GROUP demonstrated business sustainability based on a broad diversification strategy across both product and price segments, as well as a vertically integrated business model that allows you to control all stages of product creation and distribution. The team, having many years of experience in the crisis period, acted promptly and accurately, - said the press service of the Beluga Group.[4]

Alexander Mechetin left the post of head of the company

The founder of Beluga Group, Alexander Mechetin, left the post of head of the company. The press service of the alcohol manufacturer announced this on December 7, 2022. Read more here.

2021: 104.5% increase in vodka exports

In 2021, Beluga Group delivered alcohol products in the amount of 15.7 million decaliters, which is 0.6% more than a year earlier. Sales of vodka outside Russia increased by 104.5% to record values ​ ​ and exceeded the volume sold in Russia, the company said without specifying absolute indicators.

According to the press service of Beluga, the brand is gaining popularity in the world and demonstrates high dynamics in, USA,, Israel, Germany To Poland and also has a strong position in, and. France According England to the chairman of the Australia board of Beluga Group Alexander Mechetin, this was facilitated by the strengthening of the brand's image, including thanks to large-scale activations: acting as an exclusive vodka partner of the Russian pavilion at the Expo 2020 world exhibition in Dubai, as well as one of the official partners of the first edition of the guide in, Michelin To Moscow the opening of the luxurious Beluga Caviar Bar in, as well as Sheremetyevo integrations.

Beluga increases vodka exports by 104.5%

The company noted the growth of its own and partner brands from the high-margin segment "premium." Drivers among their own brands in vodka were Beluga, which added more than 50%, Belaya Sova (+ 8%) and Arkhangelskaya (+ 14%), which overcame the milestone of 3 million decaliters, in the cognac category - Bastion, which doubled volumes, and Tiflis Treasure, which showed double-digit dynamics. Other categories include Fox & Dogs whiskey (+ 26%), Green Baboon gin, which has doubled in size, and wines - quiet Golubitskoe Estate and sparkling Tete de Cheval (+ 27% combined).

VinLab's own retail network is growing in both quantitative and qualitative terms. At the end of December 2021: the number of stores in the chain exceeded 1000, its scale increased by more than 50% per year, new outlets were opened mainly in Moscow, the Moscow region and St. Petersburg.^[5]

2021: Attracting 5.6 billion rubles under the SPO

On June 9, 2021, it became known about the secondary public offering of shares (SPO) of the Beluga group. As a result of the transaction, the largest alcohol company in Russia earned about 5.6 billion rubles.

According to RBC, in total, within the framework of the SPO, the vodka producer sold 2 million securities to investors, or about 12.7% of the share capital. Secondary placement took place along the lower limit of the range of 2800-3200 rubles. Beluga plans to spend the funds raised to accelerate business growth in accordance with the adopted development strategy.

The largest alcohol company in Russia held an SPO and earned ₽5,6 billion

During the proposal, new international and Russian investors were attracted to the capital of the company, and the share of shares of Beluga Group PJSC, which are in free circulation, increased almost 2 times. We expect that this will have a positive effect on the liquidity of Beluga Group shares and will strengthen its position in the public equity market, "said Alexander Mechetin, the main owner, chairman of the Beluga board.

The joint global coordinators and joint bookrunners of the transaction were Alfa Capital Markets Ltd, Renaissance Capital, Sova Capital and VTB Capital, the co-manager of the offer was PJSC Bank FC Otkritie.

By June 9, 2021, the main owner of the Beluga Group is Mechetin (he owns 58% of the shares). Management owns 5%. Before the SPO, the share of shares in free circulation with the company was about 15%. After the SPO, based on the parameters of the deal, the figure will rise to about 28%.

According to RBC on June 9, 2021, the price of the company's shares fell below the placement price of new securities - by 7.79%, to 2791 rubles at 13:16 Moscow time. By 15:00 Moscow time, they cost 2847 rubles. Beluga stock quotes show negative dynamics from the beginning of June 2021 - from June 4 to June 9, securities lost about 24% of their value.^[6]

Notes