ZPC Otmuchow to carry out sizable investments

2010-08-30

Zaklady Przemyslu Cukierniczego Otmuchow, a confectionery producer, plans to spend PLN 84m (€21m) on the investments within the next two years. Around PLN 57m from that amount, the company plans to obtain from a share issue. The company will offer 4.25 million series D shares and 1.34 million series B shares. As much as PLN 17.5m (€4.6m) of raised funds will be spent for acquisitions, while around PLN 39.7m (€10m) will be invested in production capacity and modernisation of its plants and storage facilities.
The first acquisition is scheduled to take place in 2010/2011. The producer is looking for companies that operate in the prospective segments, in which ZPC Otmuchow could become a leader. Moreover, the firms have to generate between PLN 4-5m (€1-1.2m) of monthly sales revenues and should be profitable.
In the case of organic growth, ZPC Otmuchow plans to build a new factory that would produce jelly sweets. It will also work on production optimisation. In addition, the production capacity will be doubled.
Mentioned investments are to increase sales revenues by PLN 100m (€25m) and net profit by PLN 10m (€2.5m) a year.
In 2009, the producer made PLN 140.5m (€35.1m) of sales revenues and PLN 9.6m (€2.4m) of net profit. The financial forecast for 2010 envisages making PLN 160.8m (€40.2m) of sales revenues and PLN 12.7m (€3.2m) of net profit.