Business News

Food Group Posts Sales of EUR 326M

Ljubljana, 31 March (STA) - Droga Kolinska, the food division of the Istrabenz group, posted sales of EUR 325.8m in 2009. Operating profit reached EUR 23.3m exceeding plans, the company said Wednesday.

Sales are down from EUR 387.8m last year, but Droga Kolinska says the two figures are not comparable since it has offloaded several non-key brands last year.

Profit, meanwhile, exceeded the demands of banks which had agreed to restructure the company's EUR 188.6m debt burden last year. As a result, Droga Kolinska managed to reduce net debt by EUR 35m.

The business results come a week after the insolvent Istrabenz said it had begun proceedings to sell its food division in a bid to slash debt.

Istrabenz has commissioned French bank BNP Paribas to seek out interested domestic and international investors.

The potential sale of Droga Kolinska is part of the debt restructuring programme undertaken by Istrabenz to clear nearly EUR 500m in debts after announcing insolvency at the end of April 2009.

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