Grąbkowo, 20 March 2012
PKM Duda boosted market share
PKM Duda Group posted a 15% increase in consolidated revenues which rose to 1.57 billion PLN from last year’s
figure of 1.46 billion. In the parent company's production segment revenues increased by ca. 28%. A 9%
increase in revenues was also recorded in the distribution segment. PKM Duda Group as a whole achieved 39.3
million PLN in net profit attributed to the parent company's shareholders in 2011 – compared with a 31.3 million
PLN profit recorded the year before (a 25% increase). The Group consistently implemented consecutive
assumptions of the DUDA 2012 Restructuring Programme. Plans are in place for 2012 to accelerate growth rates
in the distribution and processing segments. PKM Duda’s consolidated sales revenues for 2011 were 1.67 billion
PLN against last year’s 1.46 billion PLN, which represents a 15% increase. The Group’s exports revenues rose by
4% during the year, from 218 million PLN in 2010 to 226 million PLN at the end of 21011. At present, exports
revenues account for 14% of revenues in total. In individual terms, PKM Duda SA closed 2011 with a net profit of
16.9 million PLN (a 75.3% increase, YOY) with turnover worth 752.4 million PLN – as compared to 589.8 million
PLN recorded the year before (a 28% increase). The parent company’s exports figures improved by 12.5% YOY
(in value terms) in 2011.
Furthermore, PKM Duda increased the scale of its pig slaughter activity. Over 2011 as a whole, the production
site in Grąbkowo – for the first time it its history – slaughtered over a million pigs. Despite the fact that the pig
population hit a record low and availability was limited, the Company slaughtered a total of 1,032,049 pigs, which
represents a 18% increase compared to 2010.
As for the plant segment, the annual operating profit rose by 37% to 8.3 million PLN from the 2010 level of 6.1
million PLN. The Group also successfully stabilized revenues from this business segment which were worth ca. 34
million PLN at the end of 2011. Such good results were an effect of last year’s upturn in the sector, manifested
with growing prices of cereals and rape seed. High prices paid for these types of agricultural produce were an
immediate consequence of the consistently high demand for energy crops in the global markets.
In the agricultural and meat production segment works were in progress to improve production results both in
quantitative and qualitative terms. PKM Duda Group slightly improved its revenues from pig breeding, closing
2011 with 71.3 million PLN in revenues from this business segment against last year’s 70.1 million PLN.
The Group’s commercial segment also recorded a boost in turnover. During 2011, revenues generated from this
area of the Group’s business grew by 9%, reaching the level of 970.2 million PLN (compared to 893.7 million PLN
in 2010). The HoReCa segment maintained a consistently high sales dynamics during the entire year, increasing
revenues by 62% YOY. This significant improvement was possible thanks to a marked expansion of the sales area
beyond the Mazovia region.
”Last year was very difficult and unpredictable for the meat sector. At the beginning of the year we had to face
the dioxin affair. We saw a deepening downturn in the market for live pigs for slaughter. Prices of raw material
hit record high levels and margins were on the decline. Considering the circumstances, we were successful in that
we markedly increased our revenues and boosted our market shares. 2011 was another year in which we
consolidated our position in the industry.” – says Maciej Duda, President of the Board at PKM Duda SA –
Next year, we are anticipating further improvements in our business results due to growth in the processing and
distribution sectors. We have prepared a plan of action for this area of business.” – he adds.
Since 2010, the Group has been steadily implementing measures set out in the DUDA 2012 Programme of
operational restructuring. Good results were achieved in the debt and working capital management areas. The
company’s interest debt declined over the year by 32 million PLN. The general debt ratio dropped by 6
percentage points to 54.3%. Also, the value of net working capital grew by almost 8 million PLN to the level of
70.3 million PLN at the end of the year. In 2011 the Group continued the process of selling assets unrelated
directly to the production and processing of red meat, selling its shares in another two agricultural companies.
The DUDA 2012 Programme, which had been adopted to reorganize a number of areas crucial for the Capital
Group’s operations and increase the Group’s operating efficiency, brought a financial benefit of 14.6 million PLN
over the entire year 2011, which – compared against the budget of effects anticipated for 2011 – represents
117% of the annual plan. Ever since the launch of the project in 2010, restructuring activities have already
brought an incremental financial effect of 27.1 million PLN (against the planned figure of 20.5 million PLN), which
represents 34% of budget planned for the years 2010-2014 and amounting to 80 million PLN in total.
“The Group has consolidated its market position, which can be primarily attributed to the consistent approach
followed in the implementation of consecutive activities set out in the DUDA 2012 Programme. This year, thanks
to our reorganized activities, we have great opportunities for continuous and effective expansion of our business.
What we would like to achieve is increasing our market shares and improving our operating results. We can
achieve these goals mainly in the processing and distribution sectors which show a major potential for generating
higher profits. – says Dariusz Formela, Member of the Board responsible for the DUDA 2012
Programme and President of the Board at CM Makton. – Thanks to our shareholders, who agreed to the
issue of shares worth up to 208.5 million PLN, we now have a flexible tool for achieving our goals.” – he adds.
On 12 October 2011, the Extraordinary General Meeting of Shareholders of PKM Duda SA adopted a resolution
authorizing the Board to increase the Company’s share capital by a maximum of 208.5 million PLN as the target
capital. According to the provisions of the resolution, the Management Board is entitled to issue shares to the
value not exceeding the above-mentioned amount, by the end of 2012. The Board is also authorized to issue
subscription warrants with the right of subscription for shares. In compliance with the decision adopted by the
Extraordinary General Meeting of Shareholders, the minimum issue price for shares was set at 1.00 PLN. The
Management Board and the Supervisory Board will jointly decide when and how the Company’s share capital will
be increased, after analyzing the situation on the market, in the industry as a whole and on the stock exchange.
Additional information is available from:
Daniel Ratajczak
Marketing Director
[email protected]
Tel. + 65 547 70 20