Hortex plans to return to profit through Russian sales

Frozen food and juice producer Hortex Holding recorded a net loss of zl. 33 million on revenues of zl. 323 million in the 2001-2002 accounting year, which ended in May. "In the early months of last year we suffered subs tantial production and sales reductions due to decreased sources of fi nancing, which were due to restructuring. We had high financial costs and lacked the resources for marketing and promotion," Hortex president Tomasz Kurpisz told Rzeczpospolita. The company is currently financed through a zl. 55 million loan from Bank of America (BoA) and also through commercial bonds amounting to around zl. 220 million owned by BGZ, EBRD and BoA. Hortex is no longer willing to concede market share to its competitors and its president promises a tough fight for market leadership. At present the company holds a 45% shares of domestic and Russian markets. Last year Hortex exported goods worth 20% of its total revenues to Russia and the former Soviet republics and plans to increase this figure by further 20% in 2002. The company will soon initiate aggressive promotion of its products in Russia, due to which Hortex plans to record revenues of over zl. 500 million and should produce net profits in the 2003-2004 accounting year. (Rzeczpospolita, p. B4) M.M.