Vaasan + Vaasan: publishes Annual Report 2007 in English

Espoo / FI. (vv) Vaasan + Vaasan Group has published its Annual Report for 2007 in English. As a whole year 2007 was fairly good for the company. The group had a turnover of 363 million EUR and it employed approximately 3.300 people. Vaasan + Vaasan continued modernising the bread market by launching remarkable forerunner products in many of our operation fields.

In the summer of 2007, V+V experienced a sharp rise in raw material costs. Particularly taxing was the swift rise in the price of our main ingredient, grains, to a whole different level from what we have been accustomed to in the last decade. It was the consequence of poor harvests in grain-producing countries, increased global demand and depleted stocks. Due to overdemand, there were also severe fluctuations in price levels.

Right from the beginning of the year, Vaasan found competition in Finland to be tougher than before. The group began cutting costs and increasing efficiency in good time, but our measures were not enough to compensate for the raw material price rises. Thus, its financial results for fresh bakery products in Finland were only average.

The company was again successful in renewing the market, however. Vaasan + Vaasan was the first producer in Finland to revolutionise the bread market with breads made of 100 percent wholegrain wheat, which were enthusiastically received by both retailers and consumers.

The overall results for the group´s Baltic operations were good, and the company exceeded its targets particularly in Estonia and Lithuania. Its operations there were affected by high inflation, labour shortages and cost increases, which V+V managed to balance out mainly with price raises. Vaasan launched important novelties in all markets and was successful in expanding the selection of wheat-based tin loaves throughout the Baltic region. The company´s Viljakas wheat breads were selected as the Bakery Product of the Year in Estonia in 2007, while the group´s Goja products received the gold medal in a Lithuanian product competition.

The powerful growth of sales in the bake-off sector continued, and the company´s bake-off operations exceeded their targets. Vaasan + Vaasan´s market position strengthened further, particularly in Sweden and Finland. V+V will continue to expand its bake-off operations organically and through acquisitions.

The Vaasan + Vaasan Group´s crispbreads and thin crisps continued to succeed globally. Sales of Finn Crisp products increased, especially in the United Kingdom and in Russia; in the latter, some of their products received awards in the highly respected Innovative Foods 2007 competition.

In the summer, the company had a change in ownership; its new owner, the international private equity company Lion Capital, specialises in investments in consumer industry and service businesses. Lion Capital´s solid sector-specific competence, extensive resources and international experience will improve the Vaasan + Vaasan Group´s opportunities for development even further. It also opens new doors for internationalisation. The company aims to expand its business with further acquisitions.

Although Vaasan + Vaasan did not meet all of its targets for 2007; the group did manage to set up an even better operating model, which is the basis for its operations in 2008. Vaasan + Vaasan´s success is guaranteed by its competent and professional staff, who help to ensure that the company will continue to bake the consumers´ favourite products (source).