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Žito Group: Sales Higher than Last Year at the End of the Third Quarter, Sales Growth also in Exports

Ljubljana, 13 November 2015 – At the yesterday’s meeting, the company’s Supervisory Board discussed the business report on the operations of the Žito Group and the company Žito, d.d., for the period January-September 2015. In this period, the sales of the Žito Group were one percent higher than in the same period last year, amounting to EUR 82.3 million, while the company Žito, d.d., sold for EUR 76.8 million products and services. A 10.4 percent growth in sales is recorder in foreign markets. By the end of September 2015, the Žito Group generated net profit in the amount of EUR 1.9 million, and the company Žito d.d. in the amount of EUR 1.4 million.

The important events in this period also include the completed sale of a majority interest of the company Žito, d.d., to the Croatian company Podravka.
By the end of September 2015, the Žito Group generated net profit in the amount of EUR 1.9 million, while net profit in the comparable period last year amounted to EUR 2.1 million. Žito d.d. generated a net profit of EUR 1.4 million, while it generated a net profit in the amount of EUR 1.5 million in the same period last year.
The sales of the Žito Group increased by 0.7 percent from the comparable last year sales. Sales rose in pillars Bread and Contemporary Kitchen, while they dropped slightly in pillars Confectionery, Milling and Principals. Although sales in the domestic market decreased by 0.8 percent compared to the same period last year, the domestic market still accounts for the majority of revenue. A 10.4 percent increase in sales was recorded in foreign markets, where Žito generates 21 percent of revenue. The increase is mainly due to increased sales of half-baked bakery products to the markets of the European Union.
At the end of the third quarter of 2015, the Žito Group employed 1,153 people. That is 27 people more than in the comparable period last year when the Žito Group employed 1,126 people.

˝In Žito we are satisfied with the business results achieved at the end of the third quarter, since in the recent period, despite the processes of the sale of the Žito company, we were strongly focused on our basic business activity and mission. I can in particularly highlight the results of the sale of the Žito Group and revenues from sale of the company Žito, d.d., which are higher than comparable last year’s, and sales in exports, where we recorded a growth of little more than 10 percent,˝ commented Janez Bojc, President of the Management Board of the Žito Group, regarding business in the period from January to September.
On 5 October 2015, the Croatian company Podravka d.d. met all the conditions for closing the transaction for the acquisition of 51.55 percent of the Žito company’s share capital. This led to the realisation of the sale of the majority interest of Žito, d.d., and Podravka thus became the majority owner of the company.
On 22 October 2015, Podravka d.d. as the majority owner published a takeover bid for the purchase of all remaining shares of Žito, d.d. The purchase is still ongoing since the takeover bid is valid from 23 October 2015 to 23 November 2015 inclusive.

Full report at: Interim report 1-9 2015 Žito Group and Žito company, pdf

Additional information:
Nina Rus Turuk,
Public Relations, Žito Group
Telephone number: +386 1 5876 120
E-mail: pr@zito.si

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