Praline-driven profit

Confectioner Mieszko turned in healthy results in Q3. The firm recorded sales revenues of zł.60.1 million and a zł.3.5 million net profit, marking y/y growth of 10 and 216 percent, respectively.

For the Q1-Q3 period, sales revenues reached zł.158.6 million and the net profit amounted to zł.3.4 million. In the same period of 2007, meanwhile, sales revenues were zł.148.8 million and the firm saw a zł.299,000 net loss.

All key economic indicators rose in the third quarter, the company reported. The y/y sales growth of its key product, pralines, reached a 44.5 percent, while the market for pralines grew by 21.6 over the quarter. Mieszko now claims a 6.1 percent share in the domestic pralines market.

Pralines comprised around 57 percent of the company's sales in the Q3, followed by caramels (25 percent), wafers (12 percent) and other products (six percent). 

The market for pralines is still smaller in Poland than in Western countries, but it has seen a strong growth over the last two years, according to Adam Mroziński, an expert at food-industry website Gieldaspozywcza.pl.

"Pralines and bonbons used to be treated as gifts for special occasions, but today they often accompany a daily cup of coffee," he said. The market will continue to grow in next few years, but it will be balanced by the global economic slowdown, Mroziński said.

Mieszko expects sales revenues for the year to be a significant improvement over last year's revenues. Moreover, according to the firm's president, Marek Moczulski, "Revenues will increase by close to double digits."

The company said it would present its development strategy by December 15.

Founded in 1993, the company's strategic investor is Central European Confectionary Holdings, which holds a 66.2 percent stake.