Fota shifts into overdrive

Fota Group International reported positive results for 2006 based on the exceptional performance of its subsidiaries. The group's revenues rose more than 35 percent last year, exceeding zł.438.5 million and beating analysts' forecasts by 25 percent.

These results can be attributed to the performance of the group's replacement-parts distributor, Fota. Considered Poland's leader in distribution, with a market share of 10 percent, it achieved profits of zł.434.2 million and an increase in sales of 33 percent over 2005.

The group now aims to continue its expansion in a market dominated by small dealers. Its strategy entails swallowing up as many of these outlets as possible in order to solidify its market position both locally and in Western Europe. The company's debut on the WSE last November provided it with zł.50 million for the investment.

Expansion always comes at a price, however, and Fota paid that price in net profits, which fell short of expectations, coming in at barely five percent over those of 2005. Fota's president, Bohdan Stankiewicz, expressed confidence that this result would be insignificant in the long run. "I consider these profits a good accomplishment ... Starting up three [foreign] subsidiaries this year was a great challenge in terms of logistics and financials. This is why profits were lower than expected," Stankiewicz explained.