Opavia-LU: completed 2007 with mixed success

Prague / CZ. (ol) Opavia-LU A.S., leading Czech biscuits, wafers and crackers maker, made in 2007 an audited net profit worth 425,9 million CZK (Czech Crowns), a drop of three percent from 439,5 million CZK a year earlier, says the subsidiary of the US-American Kraft Foods Inc. in its annual report.

Last year´s results were negatively affected by a drop in sales on the Czech market and a growth in energy and input materials prices, the company said in its statement. In contrast, total sales rose by 1,3 percent year-on-year to 4’324 billion CZK last year. Sales of own goods on the domestic market fell by 3,4 percent. The drop in sales in the Czech Republic was partly offset by sales at a Slovak subsidiary which grew by 2,3 percent year-on-year, and also by a growth in sales to sister companies abroad of 17,5 percent.

Opavia-LU had a 46,7 percent share of the Czech market for long-life bakery goods last year. According to the company «Sedita, the second most important player on the market, had a 10,8 percent share of the total market 2007. At the same time, the share of private brands of multinational chains continues to grow. Their share rose to 11,5 percent in 2007».

Last year, Opavia-LU ended cooperation with the Kaufland hypermarkets in the Czech Republic and Slovakia which made up ten percent of the company´s domestic sales. The Prague-based company will invest the withdrawn investment into other sales channels, Opavia-LU said in its statement. On the other hand, supplies to discount shops rose by 18,5 percent in 2007.

_{About: Opavia-LU A.S. has been fully owned by Kraft Foods France Biscuit since autumn 2007. The biscuits, wafers and crackers maker was established in 1999 when sweets maker Cokoladovny split into successor firms Danone Cokoladovny, Thursday Opavia-LU, and Nestle Cokoladovny. Cokoladovny was a joint venture of two main strategic partners – Switzerland´s Nestle and French Danone Group – in 1992 to 1998.}