Year-end better than last year due to consumer trust in our quality products. Planned growth in sales and profit in 2014.

Regardless of the drop in retail sales, Žito finishes the year with better operating results than last year both with profits and sales revenue. With the increase in export sales they replaced the drop in consumption in the domestic market. By the end of this year (estimate) Žito should achieve €111.6 million sales revenue and generate €2.0 million net profit.

Otherwise the Žito results have been encouraging for the first nine months of this year. By the end of September 2013 the Žito Group generated €1.06 million net profit while in the comparative period last year it generated a loss totalling €566 thousand. The Žito Group d.d. generated a profit totalling €1.14 million while in the same period last year it generated a loss totalling €315 thousand. During this period the Žito Group sold €79.9 million worth of goods. The Žito d.d. parent company sold €74.6 million worth of products and services. The sales of Group increased by 0.8% compared to the last year. The sales of the parent company increased by 2% compared to the last year.

“Without motivated employees and the trust our customers have for our products we would not achieve such results. Proof of this are all Best Buy awards of the ICERTIAS Swiss organisation that conducts surveys about customer experience and satisfaction taking into account price to quality ratio on the market. We ranked top with our Zlato polje rice in the Slovenian market as well as in Bosnia and Herzegovina and Croatia. The best price to quality ratio was also confirmed by Slovenian customers for the following products Sport müsli, Maestro spices, Žito rusk and breadsticks as well the Žito fresh bakery products,” was pointed out by Janez Bojc, the Chairman of the Management Board of Žito. To this he added that Žito succeeded a breakthrough in numerous foreign markets with breads for final baking. Furthermore, they concluded an important investment to a new line for final beaking of bread in Maribor and a warehouse. They continued with the development of brands with the highest potential. They received 13 awards for breads, supplemented and upgraded quality certificates that position Žito among the leading companies in the food industry. The key accomplishments in 2013 belong also organisational changes with which they achieve greater efficiency and responsibility, disposal of financial investment in Mlinotest company with which they concluded an acquisition agreement that was not adopted locally and lasted for many years. They also take pride in the socially responsible activities in the field of sponsorship, donations of bread and nut rolls in the pre-Christmas period and doughnuts in the pre-Carnival period. They also take pride in this year’s donation of candy to the socially endangered children. The action will be finished next week.

Next year’s plans include penetration of the Žito Group into foreign markets

In 2014, Žito forecasts an even more ambitious penetration into foreign markets. Export will be the only thing to boost economic activity especially due to improvement of conditions on global markets. Regardless of the negative trends, the Žito Group plans a growth in sales concerning quantity and value. It will achieve this with a more aggressive and efficient approach in the field of HORECA, by maintaining market brand positions and with new successes abroad as well as by signing agreements for representations with important suppliers. The share of export in sales will in 2014 increase by 1.4 percent to 17.8%.

The Žito Group plans a growth in profits by cost management. The productivity will increase with production automation and more efficient work organisation. The number of employees in 2014 will remain at the same level. The Žito Group plans savings with the optimisation of sales channels in the field of logistics.

“In 2014 our most important investments will be directed to production and packaging automation – the freezing tunnel with continued freezing and automated packaging in the Vrhnika bakery. In Maribor we will see automation of flour handling machinery and a new truck terminal for sampling and receipt of raw materials. Among other things we also plan an expansion in retail through purchase or rental of retail units at new locations and visual identity restoration of the existing retail units. The total plan includes an investment of €5.4 million that will be entirely financed from the generated cash flow,” forecasted Janez Bojc.

Žito will in the coming year also mark the 150-year anniversary of the Maribor grain mill, the oldest industrial mill in Slovenia as well as 50 years of the 1001 CVET teas brand of the national Slovenian skiing team and 60 years of the Maestro spices brand.

Additional information:

Nina Rus Turuk
Public relations, Žito Group
Phone: 003861 5876 120
e-mail: pr@zito.si

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