Who paid dividends. “Beluga”: double-digit growth and excellent outlook

Beluga Group PJSC ABELU2615,00

Sales structure of the company

The main activity of "Beluga-group" is related to the sale of alcoholic beverages in the local market, but in addition, the Russian manufacturer still has two other independent segments - retail and food, — which in total bring companies about 45% in total income.

Sale of alcoholic products. "Beluga-group" is engaged in the production and sale of vodka, guilt, Cognac, liqueur, Roma, whiskey and other strong drinks. Key brands of the company: Beluga, «Arkhangelskaya», "The King", "Belenka", Fox & Dogs, Golubitskoe Estate.

At the same time, the leader of the Russian market sells not only products under its own brands., but also exclusively cooperates with world-famous alcohol brands, for example Bacardi, William Grant& Sons, William Lawson’s, with a line of Armenian cognacs "Noy", Familia Torres and many others.

Brand sales structure of "Beluga-group" in Russia:

1. Sales of private labels 84%.
2. Sales of partner import brands — 16%.

Retailer "Vinlab". Own retail network is the main competitive advantage of Beluga Group. This allows the company to sell its products in a larger volume through this sales channel.. The segment works not only offline, but also online: you can buy alcohol through a mobile application or website, and then pick up at the store yourself.

Vinlab retailer is a unique asset in the Russian market, its profitability is 2-4 times higher than the industry-wide indicator. The management of Beluga threw all its forces into the development of this business, and by 2024, the company's chain of stores should double.

Food. Secondary business of the company, the results of which management prefers not to disclose in operating indicators because of their insignificant effect. In total, this segment 6% in general sales.

"Beluga-group" in the Far East is engaged in the production of dairy and meat products. Dairy products are produced by a subsidiary of JSC "DAKGOMZ", a total of more than 300 products, and meat — meat processing plant "Nakhodkinsky", about 200 items.

Operational results

In the first half of 2022, the two main segments of Beluga Group demonstrated strong operating performance.. Total shipments of alcoholic beverages increased by 13,6% against the background of strong results of imported brands - Armenian brandy "Noy" and Dominican rum Barcelo - and good sales of premium products of its own brands: Beluga, "White Owl", "Arkhangelskaya" and many others.

Winlab also managed to please the shareholders of Beluga Group: in the reporting period, the retailer increased its own sales by almost 34% thanks to organic business growth – in 1 in the first half of 2022, the management increased the network of stores by 23%, opening 234 new stores.

Sanctions and new perspectives

In addition to sales in the local market, the company sent a small part of its products abroad.. In 2022, this segment, probably, will show not the best results: U.S. and EU in 2 Quarterly imposed a ban on the import of Russian alcohol. But the shareholders of Beluga Group should not worry., after all, the share of export supplies in total sales in 2021 was only at the level of 4%.

A much greater positive impact on the company's financial results will have the fact, that many foreign competitors of Beluga Group decided to leave the Russian market. Chronology of events:

1. 1 In March, a major manufacturer of alcoholic beverages Nemiroff curtailed its activities.
2. 2 March Czech alcohol companies Plzensky Prazdroj, Old source, Budejovicky Budvar and Bernard stopped deliveries to Russia.
3. 2 - Pernod Ricard, a Jameson whisky producer in March, Chivas Regal, Ballantine’s, as well as Beefeater gin and Absolut vodka - suspended its supply of alcoholic beverages to Russia.
4. 3 In March, the world's largest alcohol producer Diageo stopped its export to Russia, and 28 In June, he announced his final retirement.. The main brands of this company: Smirnoff, Black Label, Johnnie Walker, Guinness, Baileys, Captain Morgan.
5. 9 March American Brown-Forman, which produces Jack Daniel's whiskey and Finlandia vodka, suspended its activities in Russia.
6. 19 May it became known, what's about 60% foreign wine may disappear from Russian stores.

Medium-term management forecast and comparison with competitors

Beluga Group's development strategy until 2024 is aimed at doubling the business, which will be achieved due to the organic growth of its own retail network "Winlab". According to the management plan, the company should open an average of about 250 new stores in each half of the year., given the current results, this looks quite feasible.

In addition to the development of the retail network, the management also intends to rebuild its core business - the sale of alcoholic beverages., increasing the share of non-alcoholic beverages with 35 to 45%. The transformation is mainly due to the reorientation of the main market: Russians began to consume more wine, than vodka.

Strategic goals until 2024

Comparison with competitors

What's the bottom line?

Beluga Group demonstrated good operating results in the first half of 2022: total shipments of alcoholic beverages increased by 13,6%, sales of the retailer "Vinlab" — on 33,8%. IN 2 in the first half of 2022, the main segment has every chance to show more impressive dynamics after the departure of many industry competitors of the company from the Russian market.

Is it worth it now to purchase shares of the leading manufacturer of strong drinks in the Russian Federation or is it better to wait for a correction?? Current levels look promising, but even more tempting is the valuation in 2300 R, которая соответствует минимумам коронавирусного падения 2020 года с EV / EBITDA 3,5.