YEREVAN BRANDY COMPANY CONCLUDES 2008-2009 FISCAL YEAR WITH POSITIVE INDICES

NOYAN TAPAN
SEPTEMBER 11, 2009
YEREVAN

YEREVAN, SEPTEMBER 11, NOYAN TAPAN. Despite the global crisis, Yerevan
Brandy Company (YBC) concluded the 2008-2009 fiscal year (from July
2008 to June 30, 2009) with positive indices. CEO of the company Ara
Grigorian announced at the September 10 press conference that in the
indicated period the index of the previous year – 4 million liters
was maintained, while the profit of YBC grew by 14%. Exports also
remained at the same level, even a slight growth was recorded.

Nevertheless, according ti A. Grigorian, the crisis affected in some
degree the company as it failed to achieve the indices of 18% growth
expected for early 2009.

Speaking about the first two months of the 2009-2010 fiscal year that
began on July 1, A. Grigorian noted that there has already been a
50% decline in the output. The main reason is the crisis in Russia –
the major market of YBC.

In his words, sales of YBC’s products in Russia fell by 36%
in July-August 2009 on the same period of last year. Sales of
brandies made in Armenia (exclusive of Ararat brandy) fell by 30% in
Russia. Thus, exports of Armenian brandies to Russia declined by 54%.

As for the steps to be taken in the future, A. Grigorian said they
envisage expanding the list of countries to which Ararat brandy is
exported by entering new markets, in particular markets of Asian
and Central European countries. Measures are being taken to open
representative offices in two African countries.