Polish meat business to open second plant

By Jaroslaw Adamowski

- Last updated on GMT

Polish meat business to open second plant
Polish meat business Agro-Rydzyna Ltd is to launch construction work on its second plant in Poland, following last year’s expansion of the production capacity of its existing facility, according to the company’s parent group.

Agro-Rydzyna operates a plant in Kłoda, in the country’s western part, and is a subsidiary of Grupa Dino Polska S.A. In addition to its activities in the Polish meat industry, the group operates a supermarket chain under the brand Dino Polska.

"The aggregate value of the investments that we carried out in 2017 stood at PLN 457 million which was an increase of 20% compared with a year earlier," ​Grupa Dino Polska said in its financial report for last year. "The main areas of investment, besides the development of Dino supermarkets, included, in particular, the expansion of distribution centres, and the increase in the production capacities of Agro-Rydzyna’s meat plant."

The investment plans are to be supported by the company’s positive financial results for 2017. Last year, Grupa Dino Polska reported aggregate sales of PLN 4.516bn (€1.065bn) which represented an increase of 34% compared with a year earlier. The group posted a net profit of PLN 213.6m (€50.4m), up 41% year-on-year.

Investments to grow production capacity

"In 2018, we will continue the investment programme, and its value is estimated at about PLN 650 million,"​ the group said. 

This indicates that Grupa Dino Polska plans invest a total of PLN 1.107bn (€261m) in the years 2017 to 2018. 

In the financial report, the group states that the investments in Agro-Rydzyna are expected to further strengthen the product offer at its supermarkets, and attract customers. In 2017, meat and processed meat products were responsible for about 43% of the group’s revenues from the sale of fresh products, and 16% of the group’s aggregate sales revenues, according to data released by Grupa Dino Polska. 

Agro-Rydzyna’s portfolio includes a wide range of poultry, pork and beef meat products, including processed meat products such as hams, sausages, bacon, frankfurters, and others. The company was set up in 1992. 

It is noteworthy that the planned increase in the group’s meat production and processing activities is necessitated by its development plans in the coming years. 

"Dino Polska’s aim is to exceed 1,200 opened stores by the end of 2020. The company considers that the potential of the Polish market allows to operate at least 2,700 Dino stores,"​ the group said. 

The group currently operates 775 stores with a total retail surface of 295,200 square metres across the country.

Since April, 2017, Dino Polska has been listed on the Warsaw Stock Exchange (WSE). The group’s initial public offering (IPO) was valued at about PLN 1.65bn (€389m). 

Local businessman Tomasz Biernacki holds a majority stake in Dino Polska, with 51.1% of the shares. As of end 2017, the holding was operated by a total of 13,100 employees, according to data from Grupa Dino Polska.

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