Variant steers for southern Europe

Variant, a producer and distributor of car accessories, chemicals and lubricants, sells its products under the Variant, Sunnycar, Mobil Medic, Pulsar, Norma, Oetiker, ABA and Petro-Canada brand names. In a contract with the Norma Group signed on December 29, Variant confirmed the sale of 25 percent of its shares to the group for EUR 900,000 (zł.3.49 million).

The company also became the exclusive distributor of Norma Group products in Poland but resigned from their distribution in Russia, Ukraine and the Baltic States in return for a E1 (zł.3.88) million compensation fee. Instead, Variant will sell Norma Group products in southern European countries. In addition, Variant bought part of the premises of ABA Polska, a part of Norma Group, for EUR 300,000 (zł.1.16 million).

In 2007 the company plans to reduce the share of exports in its total production from 25 to eight percent, while at the same time achieving a fourfold growth in export value, and focusing on southeastern European markets via dependent distributors. Further plans include the integration of its sales network, the acquisition of smaller companies, as well as launching new products and oil-sector projects.

The estimated cost of these investments is around zł.30 million and will be partially covered by an additional share issue of up to zł.25 million. The company's profit forecast for 2007 is zł.7.7 million with revenues of zł.70 million.

The company fulfilled 86 percent of its 2006 prognosis which, according to the company's chairman, Wiesław Cholewa, was due to a warm winter and resulting decline in demand for the company's products.