CEE round-up : Baltic companies boost exports to Russia
products to Russia after federal auditors acknowledged that around
150 companies had been given approval to export their products.
According to a report from Business & Baltia, the preliminary results of audits conducted last month indicate that a variety of Baltic companies specialising in the export of meat, dairy and fish products had undergone the process. The results of the audit are due to be finalised on 20 August.
The report added that of the three Baltic States Estonian companies had faired the best, with none of the 36 companies showing significant violations. In Latvia 81 companies signed up for the audits, but 23 of them later dropped out of the process, on the grounds that they would not meet the requirements. Meanwhile some 90 per cent of the 80 Lithuanian companies who underwent the process were said to have been successful.
Danone to invest €60 million in yoghurt
Shareholders from Danone's Russian division, Danone-Industria, have announced plans to invest €60 million to increase production capacity.
According to a report from The Russian Finance Report, the money will be used to increase production capacity by up to 150 per cent in an attempt to close the gap with market leader Wimm-Bill-Dann. The announcement came a week after the EBRD said it would contribute €17.5 million towards project, having agreed to back up the shareholders investment.
Danone's Moscow region production facilities, based in Chekhov and Togliatti, currently produce 120,000 tones a year. The investment will be used to up production of yoghurt and milk-based desserts at the two plants. Currently WBD has a 45 per cent share of the market, while Danone controls 14 per cent, according to Troika Dialog investment company.
Polish confectioner boosts profits, loses out on share price
Polish confectioner Jutrzenka has reported a six-fold increase in its profits, but share prices slide by 5 per cent upon the announcement was made.
The company posted a second quarter net profit of PLN 640,000 (€135,175) last Wednesday. Yesterday the company's share fell a further 3.25 after the days trading.
Company president Jan Kolañski said he could not understand the reaction to the company's performance. Although the confectionery sector as a whole in Poland has been suffering in the light of increased sugar tariffs since joining the EU, Jutrzenka has faired well against the added market pressure. Kolañski added that he didn't think there would be a problem with the company repeating last year's PLN 5.6 million earnings, stating that he thought net profits would be even higher for 2004.
