Business News

Zito With Minimal Half-Year Profit

Ljubljana, 31 August (STA) - The group around bread and pasta producer Zito reported on Wednesday a EUR 22,800 net profit for the first half of 2011, a 97% decrease year-on-year. With the exception of the bread segment, sales increased in all areas, which took sales revenues 3.1% higher to EUR 54.6m.

Zito explained that bread sales, which account for 42% of the entire sale, were 2% behind the figures in the same period last year, and also attributed this to media pressure that accompanied the raising of prices.

Also, the rising of prices of raw materials essential for Zito, which started at the end of 2010, continued in the first six months of 2011. Wheat prices doubled year-on-year, while prices of sugar even trebled.

The company offset part of the hike with higher product prices and part with a reorganisation of operations.

The domestic market accounted for 84% of Zito's revenues in the first half of the year. Sales at home increased by 1.4%, while sales on markets abroad, the most important markets being those in SE Europe, were up by 9.3%.

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