2005 results and forecasts for 2006
— 2005-12-20 —

Top financial managers of Russian companies comment on 2005 results and 2006 prospects:

Franko Nardi, Produkty Pitania (Moscow) Vice-President and CFO:

2005 was a successful year for Produkty Pitania. We launched several comprehensive projects across Russia, including our third plant in Kaliningrad - which will double production by March 2006 – along with our new distribution center in Novosibirsk – which will open new opportunities in the previously untapped Siberian market. Last year we boosted our output and demonstrated sustainable growth in sales volume. What’s more, we owe our achievement to the successful investments and strategic decisions we made two or three years ago.

As for corporate management, in late 2004, we introduced an ERP system to reduce managerial and operational costs. Today, all of the company’s administrative functions are incorporated into one information system, a move that has greatly enhanced overall efficiency.  Using this system, we can easily share data with our distributors, suppliers and investment partners.

Throughout 2005 we have kept a close eye on the political situation in Kaliningrad, where our production facilities are located. Produkty Pitania set up shop in this region 10 years ago, as its first foreign investor. Currently, we are thinking about expanding cargo transit from Kaliningrad through the Baltic States. We also hope to enhance our production capacity and boost sales volume even further in 2006, with a new distribution center in Ekaterinburg.  What’s more, we are looking at new strategies for marketing and branding in the coming year.