Some of the major capital expenditures of the company in the end of 2006 were investments in its expansion in the region of Southeast Europe, as well as in Bulgaria through the acquisition of companies (Ogneuporni Glini AD – Pleven), and development of greenfield projects (in Romania and Ukraine).
The company has also automated the main processes in its plants in Senovo and Kaolinovo, as well as the sand processingfactory in Devnya.
Other significant capital expenditures have to do with the expansion of the raw material base – the building of the “Esennitsite – setion 8” mine near the plant in Vyatovo and “Sarugyol – 21 nest” in Kaolinovo, which will supply the necessary kaolin raw material.
Between 2004 and 2006 Kaolin’s exports grew steadily, both in real and value terms. Thus in 2006 the company exported 58% of its output in terms of value and 33% of its sales in terms of volume.
In 2005 exports accounted for 67% of Kaolin’s total sales in terms of value and 44% of sales in terms of volume. In 2004 exports accounted for 59% of the sales’ value and 39% of the sales’ volume.
A total of 41.21% or 29.576 mln leva of Kaolin’s sales last year were in Bulgaria, another 16.05% and 14.71% respectively went to Italy and Romania. Sales in Turkey and Egypt accounted for 14.42% and 9.70% of Kaolin’s total revenues or 10.348 mln leva and 6.962 mln leva respectively.
In 2006 Kaolin’s revenues reached 90.163 mln leva increasing 28.1% against 2005. Between 2004 and 2006 sales grew at an average annual rate of 23.9%.
Last year Kaolin posted a net profit of 9.432 mln leva compared with 7.25 mln leva in 2005.
For the fiscal year 2007 Kaolin AD expects to keep the growth rate of its revenues registered in the past couple of years (20-30% annually).
At the General Meeting of Shareholders (GMS) of Kaolin AD held on 1 December 2006 a decision was made to increase the company’s capital to 20.419 mln leva using reserves of 17.016 mln leva.
The shareholders authorized Kaolin’s Management Board to approve a decision to increase the capital to 30 mln leva. The capital will be raised through the issuance of new common paperless registered shares and their IPO.
Kaolin AD holds 100% from the capital of Ceramic Materials EOOD, Ustrem 2001 AD, BRP Invest AD, Yugo Kaolin (Serba), Kaolin Azov (Ukraine), Kaolin Mineral (Romania) and respectively 93% from the capital of Promineral (Ukraine), Ogneuporni Glini AD and 84.79% from the capital of Magma 97 AD.
Shareholders in Kaolin AD are Alfa Finance Holding AD and Mouve Clover Ltd., UK, holding 85.98% and 12.50% of its capital respectively.