Kolinska set for further growth
of last year's investment in its production facilities, increasing
sales volumes and profits significantly. And more is to come,
having just bought out a 19.7 per cent stake in a Slovenian
processor, Droga.
Kolinska posted net profits of SIT 1.21 billion (€5m) for 2003, a figure which was 7 per cent above the company's own target figure and 9 per cent more than profits in 2002. The company said that net sales revenues increased, in line with expectations, by 5 per cent to SIT 17.95 billion. Perhaps most significantly, it has been able to maintain its increase in the all-important export market, up from 29 per cent of total sales to 31 per cent.
Currently the company's most important markets are the surrounding former Yugolslavian countries, the most significant being Slovenia. The company has a broad portfolio which includes mayonnaise, powdered foods, baby foods, snacks, soups and chewing gum.
Reflecting last year's €1.8 million investment in its Serbian bottling facilities, the company also reported that its operating profits had grown by 13 per cent to reach SIT 1.65 billion.
Speaking about the year ahead, the company said that it plans to increase revenues in its core products, which include the branded soft drink, Cockta, the mineral water brand Donat as well as its various lines of baby food.
The company has also recently bought out a 19.7 per cent stake in Slovenian food processor, Droga, which will also help to boost sales for this year. On the back of this move, Droga is hoping that the investment will also significantly boost its overall sales.
Droga said that it is now expecting to grow its sales for 2004 by an estimated 13 per cent, driven largely by efforts to raise its share of the market in other former Yugoslavian countries. The company also said in a press statement that it would try to increase its penetration of the European retail chain and the Russian market, as well as conducting studies into entry of the North African, Middle East and Turkish markets.
