Zagreb, April 2, 2007 – In 2006 Viro sugar factory realized the best business results in its history. Realized net profit increased by 38.40 percent amounting to 101.81 million kuna, while the revenue increased by 26.94 percent amounting to 639.40 million kuna. During the past year Viro sugar factory sold 127.379 tons of sugar, which represents an increase of 22.45 percent in relation to the year 2005.
Viro’s sales in the European Union market are up by 53.39 percent amounting to 72,569 tons, while the biggest growth was registered on the markets of Germany, Hungary, Great Britain and The Netherlands. In the Croatian market sales are down by 8.22 percent amounting to 54,809 tons, but Viro has kept its leading position in the Croatian sugar market with a market share of 37 percent.
Along with the production of 107,481 tons of consumption sugar and the rise of selling price of sugar, Viro’s purchase of sugar produced in Osijek sugar factory Kandit with the objective of stabilization of sugar prices in the Croatian market has also contributed to the increase of revenues. Viro is going to continue that kind of practice in 2007 in agreement with Kandit Premijer.
The most important events in 2006
Viro sugar factory published an initial public offer of shares in January 2006, and the whole emission was listed in only 17 seconds. The shares were listed by 761 new shareholders. In March the subscribed capital increased from 104,000,000 kuna to 138,666,700 kuna, and when the capital increase was completed Viro's shares were enlisted in the official market of Zagreb Stock Exchange in April 2006 with the initial price of 369 kuna.
In order to increase its competitiveness in the European Union market, in May 2006 Viro sugar factory signed a Contract on Strategic Cooperation with Pfeifer & Langen, the third largest sugar producer in Germany. In August a new facility for sugar packaging was opened which enabled export of sugar in packages of one kilo to the European Union market reaching a higher price. By opening new facilities for production of liquid sugar Viro has offered an alternative solution for home producers of non alcoholic beverages who until then were importing isoglucose syrup. The total investment in 2006 reached 78.58 million kuna.
In October 2006 a total of 13,866,670 kuna of dividends were paid, 10 kuna per share. At the Annual General Meeting held in December 2006 the shareholders decided to increase the subscribed capital of Viro by 110,933,360 kuna to the amount of 249,600,060 kuna. The capital increase was done without the emission of new shares, in a way that the subscribed capital was divided to 1,386,667 regular shares on name, without nominal amount.
Price shifts and share trading
The price of the share at the end of 2006 amounted to 657 kuna, which is an increase of 78.05 kuna related to April. During 2006 the realized turnover was 283,325,207 kuna, and market capitalization at the end of the year was 895.8 million. Profit per share is 70.7 kuna. |
