Sinergiya : Synergy announces operational results for 4Q 2015 and full Y2015

29.01.2016JSC 'Synergy' (MOEX: SYNG), the leading distilled spirits producer in Russia, reports that its sales for 4Q 2015 decreased by 14% and amounted 3,268 thousand decalitres

JSC 'Synergy' (MOEX: SYNG), the leading distilled spirits producer in Russia, reports that its sales for 4Q 2015 decreased by 14% and amounted 3,268 thousand decalitres comparing to 3,803 thousand decalitres reported in 4Q 2014. Sales for full Y2015 decreased by 10% and amounted to 9,870 thousand decalitres comparing to 11,021 thousand decalitres declared in 2014.

In Y2015 import volume of partner's brands exclusively distributed by Synergy considerably increased. Total volume of Synergy's import operations reached the amount of 461 thousand decalitres, which is 32% higher than in Y2014. In 4Q 2015 this indicator showed 190 thousand decalitres, which is 13% higher than in 4Q Y2014

Commenting on the operational results, Chief Executive Officer of Synergy, Alexander Mechetin said: 'In general, operational results of the Group are at those level that the management had expected. The major factor causing a decrease of sales in the 4th quarter was a new law obliging wholesale and retail trade to implement the Unified State Automated Information System from January 1, 2016. It caused abnormally low stocks throughout the country as both distributors and large retail companies had no opportunity to stock-up in the high season giving the specific features of the system implementation period. It was a one-time situation and now we note that the distributor's and retailer's stocks are getting stable which results in a considerably more positive dynamics of our sales at the beginning of the current year.

In response to global economic challenges in 2015 the Company continued to diversify it's business by launching own new brands and products: the Beluga line has been expanded by launching Hunting bitters and Celebration, the production and distrtibution of Vogue sparkling wines started in cooperation with Conde Nast publishing house, own series in bitters and balms category - the Captain's brand - are actively developed. We have also launched several collections of limited series in premium and middle price segments. Our import distribution is being dynamically developed. New exclusive and legendary brands such as Sailor Jerry rum, Xenta absinthe liqueur, Torres brandy, Sambuca Antica liqueur and others have been added to our portfolio

In summary I'd like to note that Synergy continues its proactive strategy which helps us to quickly react on the market changes due to our balanced approach to production and marketing operations offering the consumer only the mostly demanded products. Concentration of efforts on profitable and effective operations will let the Company keep its the market leadership using all of the market advantages».

About Synergy, Co

OJSC 'Synergy' is the leading diversified spirits group in Russia with a 15% share of the legal vodka market in Russia. The Company`s strategic focus lays on production and distribution of alcoholic beverages. Synergy is #1 Russian independent importer of spirits. Synergy possesses its own distributional platform, ensuring the largest possible market coverage, and diversified portfolio of federal brands, addressing market demands across the full spectrum of price points, from the low-middle to the super-premium price segments.

The Company`s federal brand portfolio includes super-premium vodka Beluga, premium vodka Veda, sub-premuim vodkas Myagkov and Russky Lyod, middle vodka Belenkaya, low-middle vodka Gosudarev Zakaz and brandy Zolotoy Reserv. The Company operates seven spirits production plants and one of the largest distributional platform in Russia. Synergy is the exclusive distributor of one of the global premium spirits producer William Grant & Sons, representing in Russia such brands as Scottish whisky Glenfiddich, Grant's, Clan McGregor, The Balvenie, gin Hendrick's and Irish whisky Tullamore Dew. In addition to this, the Company distributes also the products of French house of Camus cognac. Also the imported portfolio of Synergy includes Ron Barcelo rum, Amarula liqueur, Milagro tequila, brandy 'Tsar Tigran', 'Yerevan Traditional' and the balms line of Latvijas balzams.

The combination of strong portfolio of brands, strong production base and developed sales system supports Synergy`s competitive advantages and profound organic growth year on year.

Click on http://sygroup.ru/ for more information on the Company.

For further information please contact:

Prokhor Malytin Director, Public Relations	OJSC 'Synergy'	Tel. [phone] Fax [phone] e-mail: [e-mail]
Sergey Kuptsov Director, Corporate finance	OJSC 'Synergy'	Tel. [phone] Fax [phone] e-mail: [e-mail]