Miroslav Miletic, General Manager at Bambi- Domestic company could buy us as well

(Miroslav Miletic)

Although two years they were facing difficulties when they were losing profit and market game, today Bambi succeeded in acquiring leading position at the confectionary market with a stake of 20%. During the first nine months, Pozarevac-based company generated sales and profit growth 12% higher than in the same period last year. At the same, at the regional level, time the company generated a sales increase of 20% and 30% of profit generated from export. In the middle of the next year, the company will pour EUR 10 mil into a new line in Pozarevac and new products. The company aims at generating an annual profit of EUR 10 mil in 2014.

In his interview for eKapija, General Manager of Bambi, Mirolsav Miletic, is speaking about company constant share value growth, why a domestic company could buy them but also about the fact that there is no fear the company depends on “plazma”.

eKapija: Bambi shares are on the increase, yesterday they reached a record daily boost of 6, 9%, thus generating an annual maximum. To what extent has your purchase of your own shares affected the price?

- Regardless of the fact whether we are individual shareholders or no, as a part of the management, I can say that it is nice to see the shares of the company you run are on the increase. First of all, we believe that the increase is a result of our smart business decisions and performances.

On the other hand, our owner works on consolidation of his ownership structure very carefully and specifically. I think our structure is very transparent in the Central registry and that there are no questionable moments.

eKapija: Can share acquisition and ownership structure consoludation have negatove effects on potential buyers of Bambi?

- I do not believe it can in any sense influence the potential interest of future buyers or owners. On the contrary, I think it is something that will attract more investors.

eKapija: It has been known for a long time that Danube Food Group, i.e the Salford investmnmet fund is selling Bambi. Acoording to skirmishes, the last among the intersted in Jaffa. Do you believe the buyer can be a domestic company or only a foreign one?

- I would not pay much attention to skirmishes. During the previous years, a couple of companies from our country and region have openly expressed their interest. For instance, Podravka said it clearly a few years ago. One thing is that they buy us for our good performances and the other one is the strategic position of our company. Bambi is headquartered in Serbia, a country which now has a very interesting position having in mind certain preferential towards the ex Soviet countries, trade agreement with USA and similar things.

I do not have any prejudices whether it will be a domestic or a foreign company. I believe there are strong companies at our market as well which, not alone, but in consortium with others, can take over Bambi. I am a big fan of strengthening of regional positions of our companies in the region. Still, it is a market of the country which had over 20 mil citizens and if you add neighboring countries which already joined EU, on the one hand Slovenia and Croatia and Bulgaria and Romania on the other hand, you particularly have a market of over 40 mil potential customers.

eKapija: Have you been decreasing dependancy in business on "plazme"?

- Since I have been with Bambi, with some pauses, for more than 30 years, I remember when 80% of production was plazma cookie. Today, it is some 50%. It is a quality balance. Plazma cookie is not a classic product in a different package but if we have in mind the ones with chocolate, plazma cookie is actually grouped in a few categories.

There is no reason to decrease something the market can simply take. We are far from maximum at some markets. We could even double plazma production compared to some previous periods.

eKapija: To what extant is business affected by unreasonable customs and taxes for some imported raw materials?

- Customs procedures do not affect us to that extent that our market is very vulnerable to some incredible price changes between inputs while for that there are no clear, natural of economical reason. We will only mention October- November period 2009 when flour price jumped by 110%. And the wheat harvest was not bad that year. Last year, we had one of the worst seasons and the market was more stabile after all.

eKapija: This year, Bambi has recorded a growth of 12%. What is the situation at the overall confectionary market?

- This year, after a continuous three-year fall, the confectionary market stabilized. In that period, the market was decreasing as much as it was on an increase up till 2007, 5 to 7% in the overall confetcionary products placement. Unfortunately, it was decreasing much more in the chocolate category, 10-15%.

Jelena Djelic