The latest news, trends, analysis, interviews and podcasts from the global food and beverage industry
FoodBev Media
9 June 2008
Wimm-Bill-Dann set for more acquisitions
"We have plans to make two or three acquisitions this year,” WBD Chairman David Yakobashvili told Reuters during the St Petersburg Economic Forum at the weekend. “We must show our investors we are actively involved in acquisitions. This is important."
Yakobashvili would not reveal the businesses WBD has targeted, nor the countries in which they are based. The group currently operates in Russia, Ukraine, Kyrgyzstan and Uzbekistan, with almost 40 plants and a workforce of 19,000.
WBD’s last significant acquisition was the purchase of dairy producer Georgian Foods in Tbilisi in October for an undisclosed sum. Georgian Foods is WBD’s first plant in the Caucasus region, and will serve the neighbouring markets of Armenia and Azerbaijan as well as Georgia.
WBD is Russia’s biggest dairy company and third or fourth biggest producer of juice and nectar. Beverage sales include mineral water, and the group also has a growing baby food business. Key WBD investors include France’s Groupe Danone with an 18% stake. * ‘Solid’ start to 2008* On Friday, WBD reported it had made a “very solid” start to this year, with both sales and profits surging despite increased costs. Group revenue over the first quarter was 34.8% up at $731.9 million, with operating income up 23.2% to $63.4 million and net earnings rising 30.6% to $41.9 million.
“We are pleased with the very solid performance we achieved this quarter, in particular our sales growth of 34.8% on a year-over-year basis,” said Chief Executive Tony Maher. “Our baby food business continued its impressive growth with sales increasing 67.1%, outpacing market growth and strengthening our leading market share position.
“Our beverage business achieved 25.8% growth in sales, and our dairy business delivered 34.1% growth. Despite the challenging raw materials pricing environment that continued well into the first quarter, gross margin was relatively stable at 26.4% in comparison with 26.9% in the fourth quarter of 2007.”