Increased sales and continued strong profit for V&S Group during 2006

• Operating profit increased by 10% to SEK 2,275 (2,069) million
• Profit after tax increased by 5% to SEK 1,577 (1,505) million
• Net sales increased by 8% to SEK 10,345 (9,578) million
• Sales volume increased by 3% to 25.7 (24.9) million 9-litres cases
• Improved operating profit for all business areas
• ABSOLUT VODKA increased its volumes by 7%

“It is pleasing that our focus on profitable growth, a better product mix and lower costs is yielding results. All three business areas are reporting increased profitability for the second consecutive year. This demonstrates that we have a stable foundation for continued growth and increased profitability,” says Bengt Baron, CEO of V&S Group.

In V&S Absolut Spirits, the Group’s business area for international brands, operating profit increased by 9% to SEK 1,912 million. Sales increased by 9% to SEK 5,882 million and volumes by 13% to 11.2 million 9-litre cases.

“Increased sales of the Group’s largest brand, ABSOLUT VODKA, are a result of our strategy of increasing efforts on the US market while focusing on a number of prioritized markets. We are increasing our market share in the United States and volumes are continuing to show double-digit percentage growth on most prioritized markets outside the United States.”

Operating profit in the V&S Distillers business area increased by 8% to SEK 284 million, mainly due to streamlining and a focus on products with higher margins. Sales decreased by 4% to SEK 1,948 million.

Operating profit in the V&S Wine business area increased considerably to SEK 112 million, mainly due to continued cost control, streamlining and a focus on products with higher margins. Sales decreased by 2% to SEK 2,160 million.

The entire year-end report is enclosed and will be published at www.vsgroup.com