December 29, 2011

Latvia's Rigas Dzirnavnieks eyes 30% revenue growth

Rigas Dzirnavnieks, one of the major grain mills in Latvia, is anticipating a 30% growth of proceeds for 2011, stated the company's director general, Sandis Jansons.

"This year has been successful on the whole. The turnover has increased by nearly 30% and will exceed LVL18 million (EUR 25.6 million; US$33.37 million)," he said.

Exports by Rigas Dzirnavnieks have also increased 30%, and the company has been exporting products with high added value. While the competition on the export markets has been very tough this year, the company has also managed to find new export markets, Jansons said.

Most of the investments this year had been channelled into development of new products. Money is not a yardstick when it comes to investments, the director general of Rigas Dzirnavnieks said. Often those, who have money and can buy new equipment, do not know how to use them, but we have realized that the existing equipment is fully satisfactory and have invested in development of new products," he said.

Fluctuations of grain prices are likely to have the greatest impact on the company next year, Jansons said.

Rigas Dzirnavnieks reported LVL14.189 million (US$26.31 million) in sales in 2010, down by 10% from the year before, but its profit increased several times to LVL1.149 million (US$2.13 million), according to the annual financial statements published in the Latvian business register database.

Rigas Dzirnavnieks is one of the largest grain processing companies in the Baltic states and is a member of Sweden's Lantmannen group. Rigas Dzirnavnieks turns out flour products for industrial clients and retail sale under the brand names Hercogs, Herkuless and AXA.