H1 2010 brings lower profitability for Jutrzenka

2010-09-06

Jutrzenka, the confectionery producer, reported PLN 289.8m (€72.4m) of sales revenues in H1 2010, reflecting a rise of around 7% when compared to the analogous period of the previous year. Still, the company’s net profit went down by 27.6% from PLN 13.4m (€3.4m) in H1 2009 to PLN 9.7m (€2.4m) in H1 2010. The lower profitability is the effect of the cost incurred in the attempt to acquire Wedel, a popular Polish sweets brand. Eventually, the latter company was bought by Lotte Group, though while preparing from the takeover, Jutrzenka slowed down its development, especially in the chocolate segment.
At present, the producer is working on rebuilding its position in the market. In the second half of 2010, Jutrzenka plans to increase its sales and reach the profitability of the same level as in 2009. Moreover, the company considers other acquisitions.
Jutrzenka also operates in the beverages and spices segments in Poland. The sales of Hellena, the soft drinks brand, went up by 53% year-on-year to PLN 38m (€9.5m) in H1 2010, while the spices sector increased its sales by 8% year on year.