It has been more than half a year since the secondary public offering of Todoroff JSC () and the floating of shares on the Bulgarian Stock Exchange.
The company sold 1.1 mln shares in the SPO at a 2 leva/share. Oversubscription was 4.5 times. Profit.bg talked to Ivan Todoroff about the company's future and development.
Q. Mr. Todoroff what was the impact of the company's BSE listing on its image and on the business?
More people recognize our products and our brand now. We have a stable image and we intend to keep it that way. The public status is a responsibility which we realize and that is why we abide by the standards of good corporate management and business ethics. The company has a stable position on a very attractive market segment and it is managed by an experienced team of professionals. The quality of our wine has received international recognition, which distinguishes us from our competition. In the future we intend to take advantage of all opportunities for development and financing, which the capital market can provide. The BSE listing gave us the necessary push ahead we were seeking and was an incentive for everybody in the company to work hard and to contribute to a stable pace of growth.
Q. How much has the company invested so far this year and what are your investment plans?
The investment program is strictly following the aims we have stated in our prospectus. We will complete the investments we have started in cultivating our own vineyards as part of the project “Wine and SPA Tourism.” The project for enlargement of the cellar and hotel base is entering its final stages. We built our own distillery for rakiya distillate. By signing the contract with State fund Agriculture on October 1 this year, we have secured funding for our projects for cultivation of vineyards. Our plan is to have a total of 1,000 decares of vineyards by 2009. Thus, we will make wine using 100% own material, which will guarantee high quality.
Q. What is the proportion between export and sales on the local market and how has our country's EU accession affected your business?
Export accounted for nearly 6% of total turnover in Q3. Our products are well-known abroad. This is proved by the fact that this year we received silver medals from international competitions in Paris and Brussels. The EU accession facilitated our corporate clientèle, as now they are able to purchase directly from us. Most of our sales are on the home market, where there is a lot of demand for our limited editions.
Q. What is your prognosis for this year's financial result and do you think you will be able to achieve the results stated in the prospectus?
In pursuance of the objectives we have set to ourselves in the prospectus, we have completed one of our main projects – establishing our own vineyard plots. Now we are actively working on our second project - the new 4-star SPA hotel TODOROFF, which is already very successful on the market. As far as sales of wine and rakiya are concerned, our nine-month results surpassed our expectations, and this is why we think we will be able to meet all objectives we had for 2007.
Q. Is there an interest in wine tourism in Bulgaria?
Yes, I think there is. That is why we decided to start an exotic project – wine and grapes therapy on the basis of all-natural products. This is a niche on a market full of potential. Our newly-built hotel has 7 suites and 7 double rooms, all luxuriously furnished and with wireless internet access; there is a wine-tasting hall that seats 60 people; a restaurant seating 60 people, a SPA center specialized in wine therapy, which is still new to Bulgaria, and multifunctional multimedia halls seating 20 or 40 people. In 2005 our “wine tasting in the cellar” projects attracted a lot of interest. The new hotel will add a boutique appeal to our products.
Q. Are you planning to launch any new products on the market?
Yes, we are trying to introduce new things all the time. Our new products will be distinguished by high quality, and improved production technology unseen in Bulgaria.
Q. Who drinks Todoroff wine?
Our clients are the best restaurants, hotels and high-end specialized wine and liquor stores, our wine is preferred by diplomats, foreign diplomats and businessmen. Our wine is served at corporate meetings and is often guven as a gist at various occasions.