Borjomi Increases Revenue to $436 Million in 2023
Borjomi Holding has released its 2023 financial report, showing a revenue increase of $21 million, bringing the total to $436 million. Additionally, the company recorded a profit of $85.6 million for the first time since the imposition of Russian sanctions.
Borjomi mineral water is part of an international holding company, with its ultimate controller being Cyprus-based Rissa Investments Limited. The group produces several water brands, including Borjomi, Likani, Bakuriani, Svyatoi Istochnik, and Morshinsky.
According to Rissa Investments Limited's report to the Russian financial regulator, the main source of revenue in 2023 was sales to the Russian Federation, totaling $300.7 million. Georgia ranked second with $34.8 million in sales, followed by Kazakhstan with $33.5 million, Belarus with $19.2 million, and Ukraine with $13.9 million.
Before the war in Ukraine, the controlling stake in the group was held by the sanctioned oligarchs Mikhail Fridman and Petr Aven, part of "Alpha Group." To protect the national brand, the Georgian government acquired 7.73% of the group's shares for free. Giorgi Maisuradze was appointed chairman of the board of directors.
The ownership structure of Borjomi is now as follows:
- Erasmony Limited (Mikhail Fridman and Petr Aven - Alpha Group): 49.99%
- Black Waters Limited (Patarkatsishvili family): 38.48%
- State of Georgia: 7.73%
- Former employees and various shareholders: 3.79%
Georgia's participation in the shareholding structure allows the country to receive dividends from Borjomi's net profit, though it is unclear when these will be distributed. The Ministry of Economy and Sustainable Development is yet to provide details on this matter.
Borjomi Holding's total assets are valued at $410 million.