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NATIONAL AGENCY
OF INVESTMENT
AND PRIVATIZATION
REPUBLIC OF BELARUS
CONSORTIUM OF
MATTIG MANAGEMENT PARTNERS,
ALFA BANK BELARUS AND EGOROV,
PUGINSKY, AFANASIEV AND PARTNERS
Company profile:
CONFECTIONERY PRODUCER
«KONFA» OJSC BELARUS
INVESTMENT
OPPORTUNITY:
The National Agency of Investment and Privatization of the Republic of
Belarus is carrying out the sale of a majority equity stake (50.07% of the
share capital) of “Konfa” Open Joint-Stock Company (hereinafter referred
to as the OJSC “Konfa”or the “Company”) to a strategic investor through
a renewed international public tender. The investor shall also have the
opportunity to invest directly in the Company through a capital increase.
OJSC “Konfa” is a producer of high-quality confectioneries, specifically
gingerbread, cookies, zephyr, wafers, dragees and other types. The
Company’s product range includes 85 items.
The Company is located in Molodechno, Minsk Region, between
Minsk and Vilnius, Lithuania (73 km NW from Minsk). About 95% of the
Company’s sales are on the domestic market. Its trademarks are wellrecognized throughout Belarus. The Company also has export sales to
the Russian Federation and Kazakhstan, as well as Lithuania, Germany,
Serbia, USA, Canada and Israel.
The consortium of the “Mattig Management Partners”, “Alfa Bank” and
“Egorov, Puginsky, Afanasiev and Partners”, with support from the World
Bank, is financial adviser to the National Agency of Investment and Privatization of the Republic of Belarus in the tender process.
Tender Documentation will be available to investors in May 2015, following
which they will be entitled to carry out detailed due diligence reviews of
the Company.
THE COMPANY:
Viciebsk
Maladziečna
Minsk
Mahilioŭ
Hrodna
Full Name
The “Konfa” Open Joint-Stock Company
Industry
Production and sales of confectionery
Established
1954; privatized in 1995.
Shareholders:
50.07% State-owned; 49.93% private individuals
General Manager
Victor Leonidovich Dovger
Employees
366 (as of 01.04.2015)
Homiel
Brest
“Konfa”’s production premises are located on the territory of 3.3 hectares
in the city of Molodechno, Belarus, close to the Minsk-Vilnius highway
and railroad line.
NATIONAL AGENCY
OF INVESTMENT
AND PRIVATIZATION
REPUBLIC OF BELARUS
CONSORTIUM OF
MATTIG MANAGEMENT PARTNERS,
ALFA BANK BELARUS AND EGOROV,
PUGINSKY, AFANASIEV AND PARTNERS
PRODUCTS:
MARKETS:
“Konfa” OJSC is known for high-quality confectionery made according
to its own proprietary recipes, with natural ingredients and without
preservatives. The total production capacity amounts to ca. 7,200 tons
per year. The production process complies with both ISO 9001:2007
and national (Eurasian Union) GOST standards. Production dynamics
since 2008 are shown in the following table
Production
(tons)
2008
2009
2010
2011
2012
2013
2014
2014
Gingerbread
3,147
2,863
2,536
2,622
2,862
2,426
1,789
1,789
Cookies
777
1,051
1,468
1,695
1,366
982
729
729
Wafers
449
524
382
444
281
155
149
149
Zephyr
576
626
864
956
566
563
613
613
Dragees
78
101
104
84
52
42
41
41
OJSC “Konfa” is currently a member of the “Belgospischeprom” State
Concern that manages State shareholdings in food industry companies.
Other confectionery producers in Belarus are “Belgospischeprom”
companies (“Spartak”, “Slodych”, “Krasny Mozyryanin”, “Ivkon”,
“Kommunarka”, “Krasny Pischevik”) that produce a widerange of
confectionery including chocolate, halvah, jellies and jams, cookies,
zephyr and wafers. In addition, there is minor domestic competition on
the part of communal enterprises such as “Vitba” (Vitebsk) and small
private producers.
The domestic confectionery market, which has been growing steadily
over the last years is now in the process of consolidation.
Imports currently represent about 10% of the Belarusian market for sugar
confectionery and 20-25% of the market for flour confectionery. Imports
are mainly from Russia and – in higher price segments – also from Europe.
The Company has 10 different trademarks including “KONFA”,
“LEPOTA!”, “OVSYANOYE”, “BEREZHNOYE”, “GRAND”, “DONNA
ANNA”, “DONNA ROSA”, and “TAKI-TAK”.
The main trading partner for selling the products on the domestic market
is the Trade House “Konfa & PK” which accounts for 47.8% of sales.
Products are also sold through distributors and retailers such as “Euroopt”,
“Dobronom”, Belcoopsoyuz companies and other organizations.
NATIONAL AGENCY
OF INVESTMENT
AND PRIVATIZATION
REPUBLIC OF BELARUS
CONSORTIUM OF
MATTIG MANAGEMENT PARTNERS,
ALFA BANK BELARUS AND EGOROV,
PUGINSKY, AFANASIEV AND PARTNERS
The Company’s factory was built in 1954 and new production equipment
was acquired in 1968, 1988, 1995 and 2002-03. The goal of the
present tender is to attract a strategic investor in connection with the
modernization and expansion of the Company’s production capacities,
helping the Company to enter new markets, both domestically and
abroad, and to increase the market shares for its products.
PRODUCTION:
The main raw materials used by the Company are sugar, flour, milk
powder, eggs and various fats and oils. The share of domestic raw
materials in total raw material purchases is currently about 87.3%.
Imported raw materials, such as cocoa, nuts and pectin, represent a
relatively small share of production costs. Accordingly, the Company is
protected to a considerable extent from cost increases resulting from
currency devaluations.
WORKFORCE:
The Company has qualified workforce. More than 35% of its employees
have higher education. The average wage in the Company in February
2015 constituted 3.94 million Belarusian roubles (or 261 US Dollars) per
month.
FINANCIAL INDICATORS (according to IFRS):
Financial indicators, prepared according to IFRS, are stated below (in thousand US Dollars).
SELECTED BALANCE SHEET ITEMS:
Positions in USD ‘000
2012
2013
SELECTED INCOME STATEMENT
ITEMS:
2014
(9 months)
Non-current assets
1,477
1,383
1,273
Current assets
2,034
2,490
2,713
Total assets
3,511
3,873
3,986
406
510
520
Total equity
1,009
1,026
965
Total liabilities
2,502
2,847
3,021
Total equity/liabilities
3,511
3,873
3,986
Share capital
Positions in USD ‘000
2012
2013
2014
(9 months)
Revenue
8,972
7,990
5,955
Gross Profit
1,506
1,770
1,311
383
327
355
17%
22%
22%
4%
4%
6%
EBITDA
Gross Margin
EBITDA Margin
NATIONAL AGENCY
OF INVESTMENT
AND PRIVATIZATION
REPUBLIC OF BELARUS
CONSORTIUM OF
MATTIG MANAGEMENT PARTNERS,
ALFA BANK BELARUS AND EGOROV,
PUGINSKY, AFANASIEV AND PARTNERS
CONTACTS:
Peter E. Gumpel
Team Leader, Privatization Advisory Services Republic of Belarus
“Novalta EU”
Tel. +43-676-734 5555 or +375-44-4755262
E-mail: [email protected]
Sergey Mukhanaw
Deputy Team Leader and Head of Financial Component
Republic of Belarus
“Volat Capital” Investment Company
Tel. +375 29 6160082
E-mail: [email protected]
Olga Rutkovskaya
Head of the Privatization Department
National Agency of Investment and Privatization
Republic of Belarus
Tel. +375 17 200 0549
E-mail: [email protected]
DISCLAIMER:
This document was prepared with the assistance of the National Agency of
Investment and Privatization of the Republic of Belarus and OJSC “Konfa”
(the “Company”) and is based on information and sources supplied by
the Company which we believe to be reliable but is not guaranteed to be
complete and/or accurate.
The Consortium of “Mattig Management Partners GmbH”, “Alfa-Bank”
CJSC and “Egorov, Puginsky, Afanasiev and Partners” LLC shall not consider any person or legal entity except the National Agency of Investment
and Privatization of the Republic of Belarus as its client in this particular
transaction. Potential investors are recommended to consult their own
advisers in all stages and aspects of the transaction.