One of the aims of the listing was precisely to receive the market's assessment. Dancheva also said the majority shareholder is considering the floating of a 30% stake in the capital (480,000 shares) in four months time, depending on the market conditions.
The company will reinvest the funds in improvements of production. “Our 2008 investment program is worth 900,000 leva. Part of the sum will come from the proceeds of the offering,” she added. This year's development plans envisage introduction of new food products, improvement to the packages etc.
A capital increase by up to 2 mln leva is possible in the next year, Dacheva also said. “We were planning to hike capital this year, but decided to postpone it because of the unfavorable market conditions,” she explained.
Asked to comment on the appreciation of basic food materials used by Slancho, she pointed out that it would have a negative impact on the financial results. “We are trying to keep our prices unchanged. We will resort to increases only if there is no other way to cope with the situation.”
“The management is planning to build an installation for production of dry milk - a basic material for us,” she said “This will be a very serious investment initiative and we are hoping to complete in shortly.”
Dacheva pointed out that the company is the absolute leader in Bulgaria in the area of instant baby foods but meets strong competition abroad. Slancho also has to fight rivals in the areas of cereals and baby pureed foods.
The company is planning to enter the Romanian market. “We participated in an exhibition in Romania in November and our products sparked a lot of interest. At the moment we are looking for possible business partners there,” Dacheva said.
Slancho Jsc's Q1 income stood at 96,000 leva against 225,000 leva a year ago. Net sales revenues for the period are down from 914,000 to 812,000 leva y/y. The company expects sales to rise 15-20% this year.
Photo: Nina Danceva, member of Slancho Jsc's Board of Directors