Penam A.S.: profit down, sales up in FY 2008

Brno / CZ. (pm) The second largest Czech bakery Penam A.S., member of the Czech Agrofert Holding, made an audited net profit of 143,63 million CZK in 2008, a year-on-year drop of 26 million CZK, but its sales rose by 801 million CZK to a record 3’776 million CZK on a higher volume of sold products, the company said in its annual report according to Prague Daily Monitor.

Total production amounted to 253’735 tonnes last year, which corresponds to 96,3 percent of output in 2007. Penam is part of Agrofert Holding of entrepreneur Andrej Babis. «Output of pasta and special products dropped because of the sale of part of the pasta-producing firm to company Tero Rosice as of July 01, 2007. Flour production also decreased», the annual report says.

«In contrast, output of baker´s products was 7’565 tonnes higher compared with 2007. The reason was the expansion of the bakery division as part of a merger of company Hepek and KLS Klimentov», Prague Daily Monitor read in the report.

Penam continues to implement its plan from 2007 to become the number one on the Czech market for baker´s products in the years to come. In mid-2008, the company bought bakery Pekast and flour mill Nobrs, raising its share on the market from twelve to 15 percent.

The leader on the domestic market is company United Bakeries which could have a 25 percent market share in the Czech Republic and Slovakia, according to estimates. United Bakeries was established in 2006 through a merger of bakeries Odkolek and Delta Pekarny. The company made a profit of 473 million CZK on sales of 4’346 million CZK last year.