Business News

Zito Reports 50% Growth in Profit for 2010

Ljubljana, 23 March (STA) - The group around the bread and pasta producer Zito generated a net profit of EUR 2.5m in 2010, a rise of 53.5% on the year before, according to a press release posted on the Ljubljana Stock Exchange on Wednesday.

Due to a fall in retail prices and fluctuations in the prices of raw materials, the company saw a drop in revenues and lower operating costs last year; sales revenues were down 3.7% to EUR 111.7m.

The group generated 85.8% of sales revenues on the domestic market, where sales were down 4.8% on 2009. Sales abroad were down 3.6%. The most important foreign markets for the group are those in SE Europe.

The release from Zito pointed to the impact of prices of raw materials on global markets, which have been on the increase since the autumn of 2010.

Prices of wheat and sugar surged by 120% and 65%, respectively, in the second half of 2010, coupled with hikes in prices of many other raw materials and packaging. An additional problem is restricted quantities on the market.

The parent company saw its revenues drop by 2.7% to EUR 105.3m, while its net profit rose by 30.9% to EUR 2.5m.

The unaudited operating results for 2010 were reviewed by the supervisory board of the company on Tuesday.

Zito's goal for this year is to stop the trend of falling sales, which the group has been facing for several years now.

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