Financial performance

11.02.2009

Strong growth of volumes and market share in 2008

KP RESULTS FOR TWELVE MONTHS ENDED 31 DECEMBER 2008

PERFORMANCE HIGHLIGHTS

•    Volume of 15,0 m hl, 6.2% above 2007
•    Market share 42.1%, 1.7% above 2007
•    Exports volume of 444 thous. hl, 46% above 2007
•    Tyskie market share 17%
•    Żubr market share 12.8%
•    Lech market share 7.6%

Managing Director Comment

Dieter Schulze, the Managing Director of Kompania Piwowarska said: “Regardless of challenging circumstances, Kompania Piwowarska (KP) demonstrated very good performance, thanks to its balanced portfolio of consumers’ favorite brands as well as best-in-class market execution capabilities supporting future growth prospects. However our performance in 2008 reflects also the impact of unfavorable economic conditions in Poland and abroad, adverse weather conditions, rising commodity costs and, almost equally important, the fact that the Polish beer market consolidated the rapid growth seen in recent years. The significant increase of the excise tax (March 1st) and an attempt to further restrict our advertising freedoms come in the worst possible moment for the entire industry, which has been providing jobs and livelihood for over 700,000 people and generating ca. 2% of the state budget tax revenues.

Sales results and market shares

Kompania Piwowarska SA (a subsidiary of SABMiller plc) domestic sales in 12 months (January – December) of 2008 amounted to 15 m hl, representing a 6.2% increase compared to the previous year. Volumes increased by 4.7% on an organic basis (excluding Browar Belgia sales), representing almost three times the industry volume growth of 1.7%. Exports amounting to 444 thous. hl grew by over 46%.

With the total domestic market estimated at 35.6 million hectolitres, KP market share amounted to 42.1%, up from 40.4% in 2007.

All of KP main brands increased its sales and grew market shares. The best selling Polish beer brand, Tyskie, increased its market share up to 17% with Żubr (market share of 12.8%) being the second largest Polish beer brand. The third best selling brand in KP portfolio was Lech with market share of 7.6%. KP’s female consumer offering, the leader in the flavored beer segment, Redd’s, increased  its market share to a level of 1.4%.

Investments


Kompania Piwowarska concluded its investment program by increasing the capacity of the Lech Brewery in Poznań. Now the brewery stands at 7.5 m hl annual capacity making it one of the largest and most modern breweries in Europe. The brewery received an expanded fermenting hall, new brewhouse, new filtration facilities, an ultra-modern canning line filling cans at a speed of 100,000 units per hour and a beer warehouse extension. The expenditure amounted to ca. PLN 250 m. The total production capacity of KP stands now at the level of over 18 m hl per annum.

***

Kompania Piwowarska - leader of the Polish beer industry
Kompania Piwowarska is the largest brewer in Poland. Hundreds of years of experience in beer brewing, state-of-the-art technology and rigorous adherence to the World Class Manufacturing principles guarantee the highest quality beer. The company's product portfolio includes TYSKIE - Poles' favourite beer, ŻUBR - the second largest Polish beer brand, LECH, Dębowe Mocne, Pilsner Urquell, Redd's, Dog in the Fog, Peroni Nastro Azzurro and Miller Genuine Draft. Kompania Piwowarska was established in 1999 as a result of a merger of Tyskie Browary Książęce and Lech Browary Wielkopolski. In 2003 Dojlidy Brewery in Białystok was acquired by KP and in 2008 a brewery in Kielce. In the fiscal year F08, ended on 31 March 2008, KP sales volume amounted to 14.5 mill hectolitres.

SABMiller – one of the largest brewers in the world

Kompania Piwowarska is part of one of the world's largest brewing groups - SABMiller plc. SABMiller plc is one of the world's largest brewers with brewing interests or distribution agreements in over 60 countries across six continents. The group's portfolio of over 150 brands includes world-renowned international names and established local brands recognized for their superior quality and brewing excellence (Miller Genuine Draft, Grolsch, Peroni Nastro Azzurro and Pilsner Urquell). The company is also one of the largest Coca Cola bottlers outside the US. In the fiscal year F08 ended on 31 March 2008 SABMiller generated sales worth $21.4 billion and profit before taxation of $3.2 billion. Sales volume amounted to 239 mill hectolitres.

Further enquiries:

Paweł Kwiatkowski
Corporate Affairs Director, the company spokesman
KOMPANIA PIWOWARSKA SA
11 Szwajcarska St., 61-285 Poznań
Tel. +48 61 8787 881
Fax +48 61 8787 850
Cell phone +48 601 599 198
pawel.kwiatkowski@kp.sabmiller.com
www.kp.pl

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