Company briefs - 2006-06-14

  • 2006-06-14
Viru Kalatoostus (Viru Fish Processing) said it intended to export to Russia again. As CEO Toomas Aul said, "The business lunch confirmed once again what we've always thought about the Russian market. The picture we get of Russia continues to be the same 's it remains unpredictable and a very risky market, and it's difficult to expect and hope for stability from our neighbor. Exports by Viru Kalatoostus to Russia came to a halt over a price dispute with its Russian partner in April 2004. Under the Russian regulations, starting from Sept. 1, 2004, products of animal origin can only be exported by EU producers who, in addition to the euro-certificate, also hold a permit from the Russian Veterinary Authority, which is issued after checks by Russian experts at the company.

Speculation is rife that VP Market, the largest retail chain in the Baltics, is in merger talks with Palink, which operates Iki, the second-biggest supermarket chain in Lithuania. Unofficial sources have said that the two companies had moved from words to deeds and that only certain conditions laid down by Palink's majority shareholders, the Ortiz brothers, prevented them from reaching a deal. VP Market CEO Gintaras Marcinkevicius said that it was not the first time that he has been asked about a possible alliance with Iki. "Perhaps we have some initiatives underway, but for a market leader to carry out concentration is very difficult. A merger between two small market participants is easier than between two big ones," he said. VP Market estimates that it has a 30 percent market share in Lithuania, so any acquisition would push its market share toward the 40 percent threshold.

Lithuania's bankrupt TV tube manufacturer Ekranas said it plans to lay off 3,667 employees after June 15. The financially troubled company filed for bankruptcy on April 7 and ceased production four days later. There are plans to pay some 16 million litas (4.6 million euros) to employees out of a guarantee fund, which comes to 4,000 litas per person. Ekranas posted a loss of 110.3 million litas for 2005, versus a net profit of 1.2 million litas in 2004. Sales dropped by 27.3 percent to 339.6 million litas last year.

The Rimi Latvia retail chain generated 159.7 million euros in sales in the first five months this year, a growth of 19.9 percent year-on-year. Aggregate sales of the Rimi Baltic group increased 16.9 percent year-on-year to 367.7 million euros at the end of May 2006. Sales of subsidiary Rimi Lietuva by the end of May reached 73.1 million euros, up 35.8 percent, while Rimi Eesti Food posted sales of 134.8 million lats, up 5.8 percent from January-May last year. Rimi Latvia runs 80 stores, including 10 Rimi Hypermarkets, 31 Rimi supermarkets and 39 Supernetto discount stores.