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Badel 1862 Achieved a Net Profit of 6.5 Million Kuna

Badel 1862, a company engaged in the production, sale, and distribution of alcoholic and non-alcoholic beverages as well as water, achieved a net profit of 6.5 million kuna in the first nine months of this year, which is 2.8 percent less than in the same period last year.

The business results are largely influenced by the acquisition of the company Eurobev and the sale of non-alcoholic beverages through Badel, što is a new sales segment for Badel 1862, as stated in the company’s announcement published on the Zagreb Stock Exchange. The total revenues of the company in the observed period increased by 24.2 percent, to 342.8 million kuna. Revenues from domestic sales, which constitute the majority of income, increased by 38 percent, to 278.42 million kuna, while revenues from foreign sales increased by five percent, to 38.5 million kuna. In the range of strong alcoholic beverages, in which Badel 1862 remains the largest producer and market leader with a market share exceeding 50 percent, there is continuity in sold quantities with a nine percent increase in sales revenue.

Revenues from foreign sales grew by five percent, with the best export results achieved in the countries of the former Yugoslavia, Germany, and Central Europe. Given the acquisitions, accelerated business development, and expansion in the region, financing costs are extremely high and significantly diminish the positive effects achieved in operational business, the company notes. They also state that they are investing significant efforts and money for further integration of companies within the Badel Group, and the results in Kalničke vode Bionatura d.d. and Eurobev d.o.o. are significantly better than the previous year. At the end of this year and during 2009, further consolidation of the non-alcoholic business is expected in the joint venture Badel BAP.

In the water segment, significant contracts for export to the countries of the Persian Gulf and service production for Cedevita Go have been concluded this year, which instills optimism for positive results in the coming year, the company says. Total expenses of Badel 1862 in the first nine months of this year increased by 25 percent compared to the same period last year, amounting to 336.3 million kuna. Costs of raw materials and materials are down by 20 percent, depreciation costs are at last year’s level, service costs are up by 60 percent, while other operating costs are down by 63 percent, as stated in the explanation of business results. (Hina)