The subsidiaries of multinationals operating in the beer industry, Ursus, Heineken, InBev and URBB, last year generated cumulated net income worth 100m euros, 140% higher than the level reached in 2005, of only 41.3m euros, according to the companies published on the Finance Ministry website.
The most profitable brewer was Ursus Breweries, the domestic unit of SABMiller, producer of Ursus and Timisoreana brands, according to Finance Ministry data. In the past five years, Ursus has constantly doubled its profit, from a net income of 2m euros in 2002 to 35.1m euros at the end of last year. Ursus in 2006 generated net turnover of 188.3m euros, up 18% year-on-year, thus leaving behind the former leader of the domestic beer market, Heineken Romania, according to the data published by companies on the Finance Ministry's website. Contacted by ZF, Dieter Schulze, Ursus Breweries chairman, stated he could not comment on his rivals' financial results.
Heineken Romania in 2006 reached 166.9m-euro net turnover, up 5% from 2005. Instead, Heineken last year boasted the biggest income increase among the four domestic subsidiaries of multinationals, with profit hitting 26.8m euros, 7 times higher than in 2005.
While the top two market players last year saw their profitability increase, InBev, which ranks third domestically, in 2006 stood out through the biggest turnover increase. Thus, InBev Romania in 2006 reached 158.3m-euro turnover, up 40.3% year-on-year. The company also saw its income rise by 50.2% to 21.3m euros. URBB, producing Tuborg and Carlsberg brands under a licence, also saw its income double last year, with net income reaching 16.3m euros, compared with the 7.8m-euro profit in 2005 and turnover of 82.9m euros, up 22% year-on-year from 67.7m euros.
The domestic units of multinationals present on the beer market in the second quarter of this year registered a sales volume of 4.75 million hectolitres, double the volume of the first three months amid the high temperatures.
Multinationals are closely followed by Romanian brewers in terms of profit increases. European Food, the 4th competitor on the beer market, in late 2006 reported 157.3m-euro financial results, up 11% year-on-year. Bere Mures, a smaller company in terms of turnover, in 2006 posted a 46% increase in income, to 15.2m euros, while turnover advanced by only 9% to 49m euros.
Domestic beer consumption last year was in line with the European average of 81 litres per capita, rising by 16% year-on-year. Against the 15-20% growth pace from the previous year estimated by the main players in the industry, the beer market could reach a sales volume of over 20 million hectolitres and a value of some 1.2bn euros by yearend.
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