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Synergy announces operational results for the 2Q and 1H 2014

22July2014OJSC Synergy (MOEX: SYNG), the leading distilled spirits producer in Russia, announces today operational results for the second quarter and first half of the Y2014.

OJSC “Synergy” (MOEX: SYNG), the leading distilled spirits producer in Russia, announces today operational results for the second quarter and first half of the Y2014. The Company’s sales for the 2Q 2014 reduced by 7% and amounted 2,645 thousand deciliters comparing to 2,847 thousand deciliters reported in the 2Q 2013. Sales for the 1H 2014 declined by 8% and amounted 4,375 thousand deciliters comparing to 4,760 thousand deciliters reported in 1H 2013. 

Following the results of the 1H 2014 the Company increased the volume of export and import operations. The distribution of import premium brands boosted by 28% from 82 thousand deciliters to 105 thousand deciliters. The export growth made by 20%, from 208 thousand to 250 thousand deciliters. Export of super premium Beluga brand grew by 35%. 

Commenting on the operational results, Chief Executive Officer of Synergy, Alexander Mechetin said:  “Operational dynamic of the Company in the 1H 2014 despite of decline by 8% is in advance of the current indicators of the Russian spirits market in general which demonstrated 16% descend. 

It should be noted that for the reporting period the export and import operations of the Company considerably grew. They are dynamically developing within the strategy of Synergy’s diversified business. We continue to sign new contracts, expanding portfolio of premium imported brands and open new countries to deliver our own products, thereby increasing stability and profitability of the business. 

Besides, the fact that the Government of the Russian Federation decided not to raise an excise duty for the next two years inspires careful optimism on stabilization of the Russian spirits market”. 

About Synergy, Co

OJSC “Synergy” is the leading producer of distilled spirits in Russia with a 15% share of the legal vodka market in Russia. The Company`s strategic focus lays on production of alcoholic beverages. Synergy possesses its own distributional platform, ensuring the largest possible market coverage, and diversified portfolio of federal brands, addressing market demands across the full spectrum of price points, from the low-middle to the super-premium price segments.

The Company`s federal brand portfolio includes super-premium vodka Beluga, premium vodka Veda, sub-premuim vodkas Myagkov and Russky Lyod, middle vodka Belenkaya, low-middle vodka Gosudarev Zakaz and brandy Zolotoy Reserv. The Company operates seven spirits production plants and one of the largest distributional platform in Russia. Synergy is the exclusive distributor of one of the global premium spirits producer William Grant & Sons, representing in Russia such brands as Scottish whisky Glenfiddich, Grant’s, Clan McGregor, The Balvenie, gin Hendrick’s and Irish whisky Tullamore Dew. In addition to this, the Company distributes also the products of  French house of Camus cognac.

The combination of strong portfolio of brands, strong production base and developed sales system supports Synergy`s competitive advantages and profound organic growth year on year.

Click on http://sygroup.ru/ for more information on the Company.

For further information please contact: 

Prokhor Malytin
Director, Public Relations

OJSC “Synergy”

Tel. +7 495 510 26 95
Fax +7 495 510 26 97
e-mail: malyutin@sygroup.ru

Sergey Kuptsov
Director, Corporate finance

OJSC “Synergy”

Tel. +7 495 510 26 95
Fax +7 495 510 26 97
e-mail: kuptsov@sygroup.ru