Operational reviews – Bidvest Baltics

Bidvest Foodservice Europe

Ramunas Makutenas: Managing director

Highlights Turnover has increased by 13,2% Gross profit has increased by 26,2% Gross profit margin has increased by 1,73%-points Foodservice sales have increased by 30,5% Turnover, gross profit, gross profit margin and foodservice sales ave increased in all three Baltic countries (Lithuania, Latvia and Estonia) Significant growth in ambient and chilled products Improved service for the clients, enable to grow foodservice sales.

Sigitas Ramanauskas – Chief financial officer, Ramunas Makutenas – Chief executive officer, Elvis Tartilas – Logistics manager

Innovation and new investment

	Sales representatives ordering system implemented
	Business analytical system QlikView implemented
	Warehouse management system implemented
	Ambient warehouse, offices in the logistic department and marshalling area expanded
	Majority of the trucks changed and rebranded to Bidve
	Customer service department established.

Disappointments and challenges

	Retail sales are under pressure in Lithuania and still did not increase in Latvia and Estonia as planned
	Fixed costs still high in Latvia and Estonia for the sales generated
	Volumes need to be increased in all three countries for the same fixed costs.

2015 targets, objectives and factors affecting future results

	Keep increasing foodservice sales and the margin in all three countries
	Get efficient sales from the increased assortment
	Get full benefit from implemented systems
	Stop decrease of retail sales and secure margin
	Significantly increase number of sales representatives in Latvia and Estonia
	Move Latvia activity to the new depot and install fish production facilities
	Volumes need to be increased in all three countries for the same fixed costs.

Changes in the operational environment

	Number of ambient and chilled items has increased after the depot was expanded by building ambient warehouse
	Most routes taken back from the external logistic supplier to own logistics
	Most trucks changed to new multi-temperature boxes, which enable us to deliver frozen, chilled and ambient products

Risk and response

	Baltic countries economy growth may be impacted by the crisis in Ukraine and Russian import ban
	Reliance on retail sales addressed by efforts to increase foodservice assortment, number of clients and sales
	High fixed costs increase in Latvia after moving to new depot, addressed by efficient use of depot on pan-Baltic operations and long-term storage.