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23.06.2003

WIMM-BILL-DANN FOODS OJSC ANNOUNCES 3 MONTHS 2003 FINANCIAL RESULTS

Moscow, Russia – June 23, 2003 – Wimm-Bill-Dann Foods OJSC (NYSE: WBD) today announced its financial results for the first quarter of 2003.

During the first quarter of 2003, Wimm-Bill-Dann’s sales increased by 13.4% compared to the first quarter of 2002. Gross profit increased by 16.3%, with gross margins rising to 29.3% compared to 28.6% last year. Net income decreased by 26%, primarily due to the combined effect of a temporary slowdown in juice sales growth as well as costs associated with expansion in the dairy segment. EBITDA showed a slight decrease year-on-year.

Commenting on the announcement, Sergei Plastinin, CEO of Wimm-Bill-Dann Foods OJSC, said; “The first three months of this year saw continued growth in sales and improvement in gross margin. Over recent months, we have developed and launched a number of programmes such as better supply chain management, newly designed IT infrastructure and investment in technology and new equipment to enhance operational cycle and improve our cost structure. We are also in the process of improving our brand and product portfolio, launching new products and increasing efficiency of our distribution and sales channels.”

Key Operating and Financial Indicators of Q1 2003

	Q1 2003	Q1 2002	Change
Sales volumes, thousand tons	374.1	338.0	10.7%

	US$ ’mln	US$ ’mln

Sales	223.9	197.4	13.4%
Dairy	159.0	136.2	16.7%
Juice	64.9	61.2	6.0%
Gross Profit	65.7	56.5	16.3%
Selling and distribution expenses	(32.2)	(21.8)	47.7%
General and administrative expenses	(17.7)	(14.9)	18.8%
Operating income	14.6	18.4	(20.7)%
Financial income and expenses, net	(4.7)	(4.6)	2.2%
Net income	7.1	9.6	(26)%
EBITDA	21.6	21.8	(0.9)%
CAPEX including acquisitions	27.4	15.5	77%

In the first three months of 2003, Wimm-Bill-Dann’s sales amounted to US$223.9 million, compared to US$197.4 million during the same period last year.

Sales in Wimm-Bill-Dann’s dairy segment in the first quarter increased by 16.7% from US$136.2 million in 2002 to US$159 million in 2003. Gross margins in the dairy sector grew to 26.7% from 25.4% last year due to a 5% drop in the cost of raw milk compared to last year, favorable price increases for sterilized milk and a higher share of value-added products in the product portfolio.

Sales in Wimm-Bill-Dann’s juice segment increased by 6% from US$61.2 million in the first quarter of 2002 to US$64.9 million in the first quarter of 2003. Although sales slowed down in the first quarter following an exceptionally strong fourth quarter, we were able to improve our average price by 4.4% compared to the previous quarter. Pricing and volume growth were partially offset by increases in the cost of raw materials and the increased share of lower priced brands in the overall product portfolio. Gross margins in the juice division remained flat at 36%, the same as last year.

The company’s increased geographical coverage and investments in brand promotion continued to be the main cost drivers. Selling and distribution costs increased substantially, from US$21.8 million during the first quarter of 2002 to US$32.2 million this year. During the first three months of 2003, US$9.5 million was spent on the personnel portion of selling and distribution expenses, and US$10 million on marketing and advertising, US$6.8 million on transportation costs and US$1.2 million on warehousing.

During the first three months of 2003, general and administrative expenses were US$17.7 million. Net income decreased from last year and was US$7.1 million. EBITDA decreased slightly to US$21.6 compared to US$21.8 million during the first three months of 2002.

Reconciliation of EBITDA to US GAAP Income before provision for income taxes and minority interest

		Q1 2003		Q1 2002
Income before provision for income taxes and minority interest .............................................................................		9,861		13,800
Interest expense....................................................................................		5,223		4,752
Depreciation and Аmortization............................................................		6,537		3,199
EBITDA..............................................................................................	$	21,621	$	21,751

WIMM-BILL-DANN FOODS

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE MONTHS ENDED MARCH 31, 2003 AND 2002

(Amounts in thousands of U.S. dollars, except share and per share data)

		Three months ended March 31, 2003		Three months ended March 31, 2002
		(unaudited)		(unaudited)

SALES	$	223,866	$	197,427

COST OF SALES		(158,177)		(140,955)

Gross profit		65,689		56,472

SELLING AND DIStrIBUTION EXPENSES		(32,248)		(21,755)
GENERAL AND ADMINIStrATIVE EXPENSES		(17,706)		(14,905)
OTHER OPERATING EXPENSES		(1,147)		(1,376)

Operating income		14,588		18,436

FINANCIAL INCOME AND EXPENSES, NET		(4,727)		(4,636)

Income before provision for income taxes and minority interest		9,861		13,800

PROVISION FOR INCOME TAXES		(2,589)		(3,404)

MINORITY INTEREST		(215)		(832)

NET INCOME	$	7,057	$	9,564


Earnings per share - basic and diluted:	$	0.16	$	0.24

Weighted average number of shares outstanding		44,000,000		39,500,000

WIMM-BILL-DANN FOODS

CONSOLIDATED BALANCE SHEETS

AS OF MARCH 31, 2003 AND DECEMBER 31, 2002

(Amounts in thousands of U.S. dollars)

				March 31, 2003		December 31, 2002
CURRENT ASSETS:				(unaudited)		(audited)
		Cash and cash equivalents	$	18,603	$	29,340
		trade receivables, net		63,539		60,146
		Inventory, net		82,085		86,063
		Taxes receivable		77,370		68,352
		Advances paid		23,883		10,811
		Net investment in direct financing leases		1,254		1,338
		Deferred tax asset		2,040		1,850
		Other current assets		5,356		5,810
Total current assets				274,130		263,710

PROPERTY, PLANT AND EQUIPMENT, net				315,804		293,580

INTANGIBLE ASSETS				2,764		2,736

GOODWILL				21,516		19,885

NET INVESTMENT IN DIRECT FINANCING LEASES – long-term portion				4,023		4,381

INVESTMENTS				2,152		1,989

OTHER LONG-TERM ASSETS				1,248		2,812

Total long-term assets				347,507		325,383
Total assets			$	621,637	$	589,093

CURRENT LIABILITIES:
		trade accounts payable	$	51,078	$	40,144
		Advances received		4,133		3,905
		Short-term loans		94,684		94,050
		Long-term loans, current portion		2,012		2,483
		Bonds payable		16,303		16,096
		Taxes payable		18,982		15,551
		Accrued liabilities		8,606		8,346
		Government grants – current portion		2,059		2,033
		Other payables		33,027		25,770
Total current liabilities				230,884		208,378

LONG-TERM LIABILITIES:
		Long-term loans		4,163		4,546
		Other long-term payable		54,383		55,047
		Government grants – long-term portion		8,184		8,568
		Deferred taxes		11,212		8,121
Total long-term liabilities				77,942		76,282
Total liabilities				308,826		284,660

MINORITY INTEREST				22,042		21,549

SHAREHOLDERS’ EQUITY:
	Common stock			29,908		29,908
		Share premium account		164,132		164,132
		Currency translation adjustment		828		-
		Retained earnings		95,901		88,844
Total shareholders’ equity			$	290,769	$	282,884
Total liabilities and shareholders’ equity			$	621,637	$	589,093

WIMM-BILL-DANN FOODS

CONSOLIDATED CASH FLOW STATEMENT

FOR THE THREE MONTHS ENDED MARCH 31, 2003 AND 2002

(Amounts in thousands of U.S. dollars)

		Three Months ended March 31, 2003		Three Months ended March 31, 2002
		(unaudited)		(unaudited)

CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	7,057	$	9,564
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortisation		6,537		3,199
Bad debt and inventories provisions		1,572		109
Other adjustments		(916)		1,050
Changes in operating assets and liabilities:
Decrease in inventories		4,780		17,173
Increase in trade accounts receivable		(3,903)		(2,303)
Increase in advances paid		(12,822)		(10,206)
Increase in taxes receivable		(8,301)		(1,653)
Decrease in other current assets		595		1,370
Increase in trade accounts payable		10,328		4,066
Increase in advances received		176		1,402
Increase in taxes payable		3,488		3,028
Increase (decrease) in accrued liabilities		152		(657)
Increase in other current payables		1,156		2,058
Decrease in other long-term payables		(96)		(90)

Total cash provided by operating activities		9,803		28,110

CASH FLOWS FROM INVESTING ACTIVITIES:
Cash paid for acquisitions of subsidiaries, net of cash acquired	$	(492)	$	(192)
Cash paid for property, plant and equipment		(16,497)		(15,545)
Cash paid for net investments in direct financing leases		(48)		(84)
Cash paid for acquisitions of investments		-		(416)
Proceeds from disposal of investments and property, plant and equipment		697		-
Cash paid for other long-term assets		-		(5,687)

Total cash used in investing activities		(16,340)		(21,924)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of capital stock, net of direct expenses		-		162,048
Government grants received		-		786
Repayment in short-term loans		(574)		(34,389)
Repayment of long term payables		(2,970)		-
Proceeds from long-term loans		-		7,000
Repayment of long-term loans		(936)		(6,086)

Total cash (used in) provided by financing activities		(4,480)		129,359

Total cash (used in) provided by operating, investing and financing activities		(11,017)		135,545
Impact of exchange rate differences on cash and cash equivalents		280		(309)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS		(10,737)		135,236

CASH AND CASH EQUIVALENTS, at beginning of period		29,340		6,919
CASH AND CASH EQUIVALENTS, at end of period	$	18,603	$	142,155

Wimm-Bill-Dann Foods OJSC
16 Yauzsky Boulevard, Moscow, Russia
Phone: +7 095 733-97-26/9727
Fax: +7 095 733-97-25
web: http://www.wbd.com
E-mail: kagan@wbd.ru

Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Wimm-Bill-Dann, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements to conform them to actual results. We refer you to the documents Wimm-Bill-Dann files from time to time with the U.S. Securities and Exchange Commission, including our Form F-1. These documents contain and identify important factors, including those contained in the section captioned “Risk Factors” in our Form F-1, that could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, potential fluctuations in quarterly results, our competitive environment, acquisition strategy, risks associated with operating in Russia, volatility of stock price, financial risk management, and future growth subject to risks.
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