BELUGA GROUP is one of the largest players in the Russian alcohol market, which produces and sells alcoholic beverages in all price segments. For several years now, the company has shown steady growth in all indicators. Blitz facts about Beluga:

📌 Sales in more than 80 countries 🌏

📌6 own wine-vodka distilleries 🏭

📌 Broad portfolio diversification: production of the most famous brands Beluga, Myagkov, Belenkaya, as well as distribution of foreign brands Barceló, Louis Latour, Domaines Barons de Rothschild 🥃

Вин wide own distribution network Vinlab, which includes 600 stores in 11 regions of the Russian Federation 🛒

As of 2018, BELUGA GROUP ranks 1st among alcohol companies in Russia with a share of vodka production — 11%, cognac-12% and alcoholic beverages-24%.

According to official statistics (https://ac.gov.ru/files/publication/a/21614.pdf) in 2018, alcohol production in Russia amounted to almost 80 million decaliters (1 dal = 10 liters), of which about 20 million are accounted for by the Beluga Group. 🔍

Despite the strong results, the company has been on the market for only 20 years - in 1999-2001, the synergy group was founded, which in 15 years will be renamed the BELUGA GROUP. In 2002, the company acquired a factory with more than a century of history - Ussuri balsam🐅

In the following years, Beluga continued its rapid development: it acquired factories all over Russia, which gives it an advantage over its competitors in logistics, as well as entering foreign markets 🛍

Beluga has a wide range of brands:

📍 Vodka:
Beluga, "Myagkov", "Belenkaya", "Arkhangelsk", "White owl", "Copper Horse", "Russian ice", "Tsar","Georgievskaya".

Cognac (Russia):
"Treasure of Tiflis", "Ardeli", "Georgievsky", "Old guard", "Golden Reserve", Le Lion de Pierre, "Bastion".

📍 Other categories:
Beluga Hunting, VOGUE, Fox & Dogs, Ussuriysky, USURI, Trinity, Doctor August, Captain's Collection, arbatskoe.

Права rights to import various foreign brands of spirits and wines to Russia.

Alexander Mechetin, the founder and permanent Chairman of the company's management Board, deserves a special mention. Unlike the typical image of an alcohol magnate, Alexander is a family man with 5 daughters and a true professional in his field. For example, in 2016, during an interview with Ksenia Sobchak, Mechetin was brought 3 different glasses of vodka, from which he had to determine his own. And he really managed to distinguish his Beluga From other brands 🔍

Owning the largest alcohol business, Mechetin did not forget about his native land-the far East. In 2013, the Zarya center for contemporary art was opened in Vladivostok. Today, this is a truly unique project that supports artists and creative youth. We welcome the social orientation of business, especially aimed at developing the far corners of our country🏔

Learn more about the group's business diversification:

Собственное own production of various alcoholic brands that are the most recognizable in Russia and abroad✅

📌 Own chain of retail stores, with a growth rate of new outlets of about 25% per year✅

Собственное own food production: meat and dairy products in the far East✅

Let's move on to the financial indicators that we calculated with our own hands ✍ ️ 🧮

EPS=73.87, which is significantly higher than the average among MOEX bidders (approximately 7 times). This indicates the high efficiency of the company 💹

📍P/E=20,98. The indicator is not very good, but based on the above information, we conclude that the company is developing more and more every year and, at the same time, P/E will decrease due to profit growth, which we forecast this year. In addition, the high value of the indicator indicates that the company has a lot to grow 📈

📍 As we can see, Beluga is really developing, but its average yield is 5.98%, which hardly covers inflation (we are skeptical about the statements of Rosstat and the Central Bank about "3.5% inflation") ⚖ ️

Бета beta coefficient=0.094, which tells us that Beluga is not growing fast enough, which, unfortunately, is not keeping up with the market. However, the pandemic is in the company's favor, as alcohol has become almost a daily necessity, its sales are growing. Alcohol markets are not closed and are unlikely to become so, and this gives grounds for investing in Beluga💰

A serious disadvantage of the company is the lack of a specific dividend policy, as well as the annual payments themselves. Despite the strong growth in the market value of the securities themselves, Beluga Group can hardly be included in the strategy of buying shares for the sake of dividend income. However, the steady growth in net profit suggests the possibility of payments in the near future ✅

It should also be said that in Russia recently there has been a trend towards a slow gradual transition from spirits to wines and sparkling wine. In turn Beluga continues to diversify its business and opens its own wine production 🍾

Thus, the company may be attracted by the rapid growth of quotations, which is likely to accelerate with the release of operating results for the 2nd quarter of 2020. However, the situation with dividends is contradictory: on the one hand, an increase in net profit should signal the Board of Directors to change the dividend policy, but on the other hand, a consistently high growth in the value of the company's shares is already an excellent advertisement for shareholders, whom the Board may not want to attract with additional spending, so the issue of dividends remains open 🤷 ♂ ️