Hortex considering entering the stock exchange

2010-07-15

Hortex, the well-known Polish producer of food and soft drinks, is considering going public, according to a report in Parkiet. The company’s management emphasises that its debut on the stock exchange would be the best possible way of acquiring business investors. Tomasz Kurpisz, the company’s chairman, quoted in the newspaper, claims that the company’s activity is based on two crucial areas: frozen food and soft drinks, and that finding a single investor for the entire business would probably be impossible. The earliest possible date for entering the stock exchange is 2011.
In addition, Hortex is considering a number of acquisitions in order to introduce a new category of products to its range. The company’s management emphasises that Hortex is not interested in taking over producers which manufacture goods under private label names but, instead, companies with strong brand names.
Preliminary estimates suggest that there was a 4% reduction in the company’s sales revenues, to PLN 740m (€190m) in the 2009/2010 fiscal year which ended on 31 May 2010. Its net profit is also expected to be lower than that of 2008/2009, which was PLN 19m (€4.5m). The disappointing results reflect reductions in exports to Russia, which is a strategic market for Hortex. There has been a 25% reduction in consumption of frozen food on the Russian market over the last two years. Hortex has, therefore, suspended its plans to build a factory in Russia.
In total, the company’s exports declined by 14% in 2009. At present, foreign sales account for 45% of company's sales revenues.