...No Excise Increases in 2015-2016: OAO Synergy was upgraded by one notch in December 2014 to reflect Fitch Ratings' expectation of a stabilising Russian duty-paying vodka market, with better visibility on Synergy's revenues and profits thanks to the cancellation of previously planned excise duty increases in 2015-2016. This should support Synergy's sales volumes and its ability to pass through cost increases to customers. Improving Diversification: Synergy is improving its diversification by developing its brandy and whisky production, widening its portfolio of imported alcoholic beverages and increasing its exports (2013: altogether 18% of revenues). We expect the distribution division's revenues to more than double by 2017. EBITDA Margin Under Pressure: We do not expect Synergy's EBITDA to return to pre-2014 levels in the medium term as the beneficial effect from expanding sales of its own-produced premium-priced products will be offset by an increasing contribution from less profitable...
