Tallinn, Estonia, 2011-03-09 15:15 CET (GLOBE NEWSWIRE) --
According to the management of the company, increase of turnover and profit is expected in all business segments and the increase of sales volumes together with the increase of production efficiency in fish and ice-cream segment will bring along increase of profit.
In ice-cream segment, the management expects growth in all target markets, thereby for the purpose of expanding and improving the efficiency of production activities, the company has executed a lease agreement with an ice-cream producer OOO „Leda“ and as a result of which the production activities of Khladokombinat will be relocated from the existing lease premises in the centre of St Petersburg to logistically well-suitable premises of the ice-cream factory situated 160 km from St Petersburg in the city of Kirishi. Costs occurred in the course of the relocation in 2011 amount to 280,000 euro but at the same time the relocating the activities of Khladokombinat to new rental premises results in savings amounting approximately up to 100,000 euro in 2011 and as from 2012 approximately up to 500,000 euro per year. Operating in the new premises will additionally enable the company to diversify the product line. Due to the relocation employment contracts with 137 employees related to production in St Petersburg will be terminated, but at the same time 80 new employees in Kirishi will be hired, also key employees of the sales and marketing divisions and some of the current production specialists continue to work for the company. Improvement of efficiency and continuous development of the existing brands in the Baltics is, in the opinion of the management, solid ground for the growth expectations.
Aggressive approach in frozen goods segment continues and in addition to the existing markets the company enters into that business segment also in St Petersburg and Finland by development of company’s own trademarks, which will be achieved through diversification of product line. Increase of volumes in the frozen goods business segment enables to even out the effect of seasonality of the ice-cream segment.
In fish segment growth is expected after the reorganisation of production carried out last year and because of active product development carried out for trademark Heimon Gourmet in the Finnish market and by launching the trademark Viking in the Baltics’ frozen fish products segment this year.
“The Supervisory Board has approved the proposal of the Management Board to distribute profit in the amount corresponding to 30% of the 2010 net profit of Premia Foods to be paid as the dividends of 2010 and corresponding proposal will be made to the annual General Meeting of shareholders in order to get its approval. In our opinion it is important to develop consistent dividend policy on which the shareholders could rely on in the future. Liquidity ratios and debt-to-equity ratio of Premia Foods are solid and the company has enough funds or options for future investments and further development,” said the Chairman of the Management Board Kuldar Leis.
Premia Foods is a group of companies consolidating food companies, which operates in the Baltic countries as well as in Finland, Sweden and Russia and which is particularly well-known for its highly rated trademarks. The company’s unaudited consolidated turnover for 2010 was 77.3 million euro and altogether 797 people are employed by the company. Premia Foods is listed on NASDAQ OMX Tallinn Stock Exchange since 5 May 2010.
Kuldar Leis
Premia Foods
Chairman of the Management Board
T: 6 033 800
kuldar.leis@premia.ee
www.premiafoods.eu