I & S INNOVATION & SUSTAINABILITY
2 February 2012

EFKO releases operating results for 2011

EFKO Group, a leading Russian vertically-integrated producer of industrial fats, mayonnaises and vegetable oils, announces its operating results for 2011.

In the reporting year, the Company increased sales of all core products, both food ingredients and branded products, with high added value mayonnaises demonstrating a significant growth of 31.4%.

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Core Product Sales in Physical Terms (thousand tonnes)*

Product/Period

2010

 2011

Food ingredients

334.7

 367.8

Vegetable oils

 

 

Sloboda bottled oil

39.1

55.9

Altero bottled oil

13.5

16.6

Other bottled oil brands

9.1

4.1

Vegetable oil in bulk

36.2

13.7

Total mayonnaises

80.5

105.8

Sloboda brand

68.1

86.6

Other brands

12.4

19.2


* Management reporting data

Food ingredients

EFKO Group has improved its leading position in the Russian food ingredients market, including the most promising niche of compound industrial fats for confectionery, bakery, spreads and other food products. In January–December 2011, sales of food ingredients in physical terms grew by 9.9 % up to 367.8 thousand tonnes year-on-year.

Branded products

In 2011, sales of all mayonnaise brands in physical terms went up by 31.4% and totalled 105.8 thousand tonnes. The growth was primarily driven by sales of Sloboda mayonnaise reaching 86.6 thousand tonnes – this exceeds aggregate sales of all mayonnaise brands in the previous year.

Sales of vegetable oils under the Sloboda brand, the Company's flagship trademark, increased by 42.8 % year-on-year and totalled 55.9 thousand tonnes. In 2011, aggregate sales of all bottled oil brands went up by 24 % year-on-year.

New products and awards

In 2011, EFKO presented Ecoslice margarines, new food ingredients for puff pastry dough.

In the reporting year, the Company also introduced to the market a number of essentially new mayonnaises:

  • Sloboda Provenсal Family mayonnaise with 55.5 % fat content
  • Sloboda BioLight mayonnaise with 35 % fat content
  • Sloboda BioExtraLight mayonnaise with 15 % fat content.

BioLight mayonnaises have a low fat content with inclusion of innovative fibre improving dietary properties and making the product the best choice for advocates of healthy products. Following 2011, EFKO products won a number of awards:

  • Econat confectionery fat and Ecolade cocoa butter substitute were placed on Russia's Top 100 Best Products list
  • Sloboda and Sloboda Dachnoye sunflower oils were also awarded with Russia's Top 100 Best Products prizes
  • Altero combining sunflower oil with olive oil won Russia's Top 100 Best Products prize
  • Sloboda Olive mayonnaise won the national Product of the Year award in the Mayonnaise category for the third year in a row.

Corporate development in 2011

In 2011, EFKO launched a long-term modernization program to increase the food ingredient production capacity from 204 thousand tonnes to 280 thousand tonnes per annum and enhance performance of the integrated vegetable oil terminal in the Taman port (Krasnodar Krai) from 0.7 million tonnes to 1.5 million tonnes per annum.

In 2011, the specialized fat and margarine production facility in the town of Alekseevka, Belgorod Region, was top-ranked and yet again certified to comply with the BRC and IFS international standards by its product quality and safety.

In the reporting year, EFKO Group purchased and revamped the mayonnaise production facility in the town of Noginsk, Moscow Region.

The production facility in Alekseevka increased its daily vegetable oil extraction capacity by 300 tonnes and modernized the hulls combustion boiler to cover up to 75 % of the heat demand. In 2011, EFKO Group expanded its vehicle fleet by purchasing heavy-duty lorries and railway tanks.

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