DROGA KOLINSKA GROUP January to March 2009

DROGA KOLINSKA GROUP
January to March 2009
Ljubljana, 29.05.2009
CONTENTS
1.
BASIC INFORMATION ................................................................................................................................... 2
2.
FINANCIAL HIGHLIGHTS FROM OPERATIONS................................................................................................ 3
3.
SIGNIFICANT BUSINESS EVENTS ................................................................................................................... 4
4.
COMPOSITION OF THE DROGA KOLINSKA GROUP AS AT 31 MARCH 2009 ................................................... 5
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1. BASIC INFORMATION
Company profile of Droga Kolinska, d.d.
REGISTERED NAME: DROGA KOLINSKA, Živilska industrija, d.d.
ABBREVIATED NAME: Droga Kolinska, d.d.
REGISTERED OFFICE: Kolinska ulica 1, 1544 Ljubljana, SLOVENIA
TELEPHONE: 00386 1 472 15 00
FAX: 00386 1 472 15 35
E-MAIL: [email protected]
WEBSITE: www.drogakolinska.si; www.drogakolinska.com
MANAGEMENT BOARD: Slobodan Vučićević, President; Milena Štular,
Member, Branko Greganovič, Member, and Enzo Smrekar, Member
REGISTRATION NO.: 2114011000
VAT NO.: SI88736172
COMPANIES REGISTER NO.: 14189800
DATE OF ENTRY IN THE COMPANIES REGISTER: 3 May 2005
SHARE CAPITAL: EUR 61,379,314.81
NUMBER OF SHARES: 14,708,939
LISTING OF SHARES: The company's shares are not listed on the organised
market.
Position of the Company in the business group
Droga Kolinska, d.d., together with its subsidiaries, comprises the Droga Kolinska Group, which in
turn is a constituent part of the Istrabenz Group.
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2. FINANCIAL HIGHLIGHTS FROM OPERATIONS
− Net revenue: Droga Kolinska Group generated net revenue of EUR 75.8 million in the first quarter of
2009. Net revenue was down on the same period in 2008 due to: (i) the sale of non-core businesses
and the termination of the Unilever programme, and (ii) the unexpected depreciation of the Serbian
dinar, which lost 12% of its value against the euro compared with the same period last year (the
Serbian market accounts for approximately 50% of the Group's sales). Revenue on the Serbian
market, expressed in Serbian dinars, was actually up 7%.
− Strategic businesses are growing in line with expectations: The net sales revenue of strategic
businesses, expressed in euros, was down 3% on the same period last year, mostly due to the effect
of the Serbian dinar's depreciation. Revenue from non-core businesses was down 43% on the
revenue generated last year, due to the disposal of most non core businesses. Sales of strategic
businesses were in line with expectations, with exceptionally good sales results achieved on all
markets by the Argeta spreads and Smoki flips.
− Debt and liquidity: Droga Kolinska Group is paying its liabilities to creditors and suppliers regularly.
Total net debt was down from EUR 190 million at the end of last year to EUR 175 million at the end of
March 2009. Over the same period, Droga Kolinska Group increased its cash balance to EUR 13.3
million, which ensures the Group's financial stability during highly unpredictable operating conditions it
faces in 2009.
Movement of the Serbian dinar exchange rate relative to the Euro in the period from May 2008 to May 2009
− Operating profit: Droga Kolinska Group generated EBIT in the amount of EUR 1 million in the first
quarter of 2009. The decline in EBIT is primarily a result of the 12% depreciation of the Serbian dinar,
as the Serbian market generates approximately one-half of the Group's total revenue.
−
Net cash flow and net profit: Negative exchange rate differences due to the depreciation of the
Serbian dinar and higher interest expenses on account of an increase in the level of debt compared
with the same period in 2008 contributed most to Droga Kolinska Group's negative net cash flow and
the resulting net loss.
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in EUR thousand
ITEMS FROM THE UNAUDITED INCOME STATEMENT
OF THE DROGA KOLINSKA GROUP
1
Jan–Mar 2009
Jan–Mar 2008
Index
Net sales revenues
75,829
85,464
89
of which: strategic businesses
65,123
66,798
97
2
EBITDA
6,741
9,284
73
3
EBIT
1,029
3,235
32
4
Net cash flow
-6,211
-5,049
123
5
Net profit of loss for the accounting period
-5,636
-1,796
314
in EUR thousand
ITEMS FROM THE UNAUDITED BALANCE SHEET AND
NUMBER OF EMPLOYEES OF THE DROGA KOLINSKA
GROUP
31 March 2009
31 December 2008
Index
1
Net financial debt
175,438
190,214
92
2
Total equity
192,251
202,034
95
3
Total assets
435,166
481,568
90
4
Number of employees
2,805
2,953
95
3. SIGNIFICANT EVENTS
February 2009
The Belsad fruit spreads and Proja coffee substitute were sold in February as part of the strategy of selling
off non-core brands.
Banka Koper sold its ownership stake in Droga Kolinska d.d. to Probanka and Factor banka.
April 2009
The term of three members of the Supervisory Board, shareholder representatives Igor Bavčar, Miroslav
Golubić and Milan Ćadež, expired.
At the beginning of April, Droga Kolinska suspended sales of the Bebi children's food product line, as
conditions on the market no longer facilitated sales under acceptable terms. The Droga Kolinska Group
sold the Viki chocolate spreads busienss. Thus, Droga Kolinska effectively concluded the process of
selling off non-core brands, which began almost exactly one year ago, in April 2008. The sell-off of noncore brands was carried out in line with the realisation of Droga Kolinska's new business strategy, which
envisages focusing on a smaller number of the strongest brands with regional potential. Of all the
businesses put up for sale, only the industrial and road salt has yet to be sold. Operations will cease at the
end of 2009, as a new owner, prepared to move production to a new location, was not found. The new
owners have retained the workers of the businesses that have been sold off to date. Thus no employees
lost their job in the sales process.
May 2009
th
The Company's Management Board convened the 8 Annual Shareholders Meeting, to be held on 8 June
2009 at 11.00 am at the Company's registered office, Kolinska ulica 1 in Ljubljana.
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4. COMPOSITION OF THE DROGA KOLINSKA GROUP AS AT
31 MARCH 2009
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