Taste for takeovers

In the first six months of the year Grupa Jutrzenka posted a revenue of zł.221 million, up by 12 percent year-on-year. Net profit for the period rose to zł.13.2 million, a 16-percent increase from H1 of 2006. The rising financial results have helped Jutrzenka to grow faster than the market. According to market-research firm MEMRB, Jutrzenka grew 9.5 percent over the last twelve months, while the market grew just over six percent.

"Q2 of this year was much better than last year's. We have seen a clear increase in sales due to a better-prepared product portfolio for the summer," Jutrzenka's president Jan Kolański said. He added that the group is focusing on wafers, hard candy and gummy candy, rather than chocolate.

The firm's results were supplemented by the takeover of beverage producer PP Hellena, which Jutrzenka acquired for zł.75.2 million. As Jutrzenka underlines, despite financial difficulties, Hellena's brand recognition in the fizzy drinks segment stands at 80 percent. Hellena's products might land in the stores soon. "We plan to launch production this season," Kolański said, adding that the beverages should be available before the end of the summer.

The group plans further acquisitions to strengthen its position on the food and beverages market. It plans to issue 4.55 million shares of the C-series to acquire a 100-percent stake in Kaliszanka (the producer of the Grześki brand of wafers) and a 99.5-percent stake in spice producer Ziołopex, which will allow the company to diversify its products. Jutrzenka also plans a second share issue and wants to devote the proceeds to development, investing in a logistics center near Poznań, expansion of a production plant in Bydgoszcz and acquisitions of foreign brands with strong position on the spices market and its own distribution network. The issue is due to take place before the end of the year.