While Deutsche Brauerei seems to have had almost overnight success in Ukraine, financial statements show that this success has been purely cosmetic. Using lax credit terms, Oleg Pinchuk has been able to report rapid sales growth yet seems unlikely to collect on some of the accounts. The focus on sales has masked the fact the Deutsche Brauerei is not very profitable and has been experiencing an increase in costs. Because of this, the companys value is actually declining. To rectify this situation, Deutsche Brauerei needs to focus on increasing profitability by cutting costs and reducing dividends.
The current tasks facing the board of directors are approving the budget for 2001, declaring the quarterly... View More »