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YEREVAN COGNAC PLANT NET PROFITS DROP 24% LAST FINANCIAL YEAR
Interfax
Sept 14 2011
Russia
CJSC Yerevan Cognac Plant, Armenia's leading alcoholic beverages
producer, saw net profits drop 24.4% year-on-year to 2.422 billion
dram in the financial year ending with June 2011, the plant's executive
director, Ara Grigoryan, said at a Wednesday press conference.
Sales volume was up 9.4% at 2.842 million liters, and was in line
with production volume, Grigoryan said.
Despite the increase in sales, the plant was unable to regain its
pre-crisis level, and was 12% behind the 2007 figure, he reported.
The drop in profits was attributable to the company having to cut
its product prices to maintain sales on its traditional markets amid
global economic crisis and lower demand.
Prices were reduced in Russia and the Baltic countries. Lowering prices
with the aim of pushing sales up was a result of the plant procuring
30,000 more tonnes of grapes than necessary over the past three years,
and production capacity was occupied. The company was compelled to free
up that capacity and make additional investments in order to ensure
the availability of containers and new grape buys, Grigoryan said.
During the last financial year, the structure of the plant's sales
underwent change. Where the Russian market had represented 71% of
export sales, that figure dropped to 64%. Sales in Europe were up 47%.
Grigoryan noted that the plant intends to enter new markets to
diversify sales, particularly in Asia. China's market looks the most
desirable, but it is very complicated and huge investment is being
made to promote the Ararat brand in that country, which is quite
unfamiliar with Armenia and its products. Plans call for expansion
on markets in the United States and Germany, where Yerevan Cognac
Plant product has been available for two or three years already.
The plant will lay in some 20,000 tonnes of grapes this year, almost
9,000 tonnes less than last year, Grigoryan said. It would suffice
to buy all of 5,000 tonnes from farmers this year, considering the
plant's cognac inventory, he said, but because of social factors the
company has decided to increase that amount to 20,000 tonnes. The
plant accounts for 30% of overall grape purchases in Armenia.
Yerevan Cognac Plant is Armenia's biggest producer and export of
cognac. It belongs to the French group Pernod Ricard.The official
exchange rate for September 14: 374.56 dram/$1.
From: Baghdasarian
Interfax
Sept 14 2011
Russia
CJSC Yerevan Cognac Plant, Armenia's leading alcoholic beverages
producer, saw net profits drop 24.4% year-on-year to 2.422 billion
dram in the financial year ending with June 2011, the plant's executive
director, Ara Grigoryan, said at a Wednesday press conference.
Sales volume was up 9.4% at 2.842 million liters, and was in line
with production volume, Grigoryan said.
Despite the increase in sales, the plant was unable to regain its
pre-crisis level, and was 12% behind the 2007 figure, he reported.
The drop in profits was attributable to the company having to cut
its product prices to maintain sales on its traditional markets amid
global economic crisis and lower demand.
Prices were reduced in Russia and the Baltic countries. Lowering prices
with the aim of pushing sales up was a result of the plant procuring
30,000 more tonnes of grapes than necessary over the past three years,
and production capacity was occupied. The company was compelled to free
up that capacity and make additional investments in order to ensure
the availability of containers and new grape buys, Grigoryan said.
During the last financial year, the structure of the plant's sales
underwent change. Where the Russian market had represented 71% of
export sales, that figure dropped to 64%. Sales in Europe were up 47%.
Grigoryan noted that the plant intends to enter new markets to
diversify sales, particularly in Asia. China's market looks the most
desirable, but it is very complicated and huge investment is being
made to promote the Ararat brand in that country, which is quite
unfamiliar with Armenia and its products. Plans call for expansion
on markets in the United States and Germany, where Yerevan Cognac
Plant product has been available for two or three years already.
The plant will lay in some 20,000 tonnes of grapes this year, almost
9,000 tonnes less than last year, Grigoryan said. It would suffice
to buy all of 5,000 tonnes from farmers this year, considering the
plant's cognac inventory, he said, but because of social factors the
company has decided to increase that amount to 20,000 tonnes. The
plant accounts for 30% of overall grape purchases in Armenia.
Yerevan Cognac Plant is Armenia's biggest producer and export of
cognac. It belongs to the French group Pernod Ricard.The official
exchange rate for September 14: 374.56 dram/$1.
From: Baghdasarian