Ljubljana, 12 December (STA) - Bread and pasta maker Žito announced on Thursday plans to increase revenues at group level by 2% to EUR 113.6m in 2014 and profit by 13.5% to EUR 2.3m. The company wants to expand its presence on foreign markets and increase the share of export sales to 17.8%.
The idea is to boost profits with cost management and higher productivity with the help of automation and effective work organisation. No reductions in the size of the workforce are planned.
The business plan for 2014 envisages EUR 5.4m worth of investment, mostly into the automation of production and packaging. Also on the list is an expansion of the retail network and a facelift at existing units.
The group recorded sales of EUR 79.9m in first nine months of 2013, which is a 0.8% year-on-year increase but slightly below plans, and posted a EUR 1.06m net profit, bouncing back from a EUR 566,000 loss in the same period last year.
It expects revenues to increase to EUR 111.6m by the end of the year, a slight improvement on 2012, while net profit is projected to increase five-fold to EUR 2m.
Žito is one of the 15 companies slated to be privatised by the current government. A group of owners controlling a 50.7% stake in the company signed an agreement on the joint sale on 23 October.