Equity
New owner to take Herz to bourse in a year
Hungary's prestigious meat processor Pick Szeged Rt, established in 1869, announced on Monday that it sold its 99.99% stake in Herz and its 100% stake in spice and canned food maker Szegedi Paprika.
The latter was purchased by listed firm Forrás Rt and Herz was bought by Ottó Albrecht, the majority owner of Cashline Securities. Albrecht has not indulged in other than financial investments so far.
Albrecht told portfolio.hu that Herz was operating profitably even today and with minor changes it could be listed on the Budapest bourse within a year.
Herz has annual EBITDA (earnings before interest, tax, depreciation and amortisation) of around HUF 1 billion (EUR 4.06 million) and no debts. Herz targeted HUF 9 billion sales for 2004.
Operations at Herz are efficient, the company is not integrated vertically and has a staff on only 460. It buys semi-finished products and runs no slaughterhouse. The output of the company is 6,000 tonnes a year, 1,800 tonnes of which go to exports.
Albrecht said his short-term objective was to detach from Pick, which by itself could boost profits of Herz, as Pick has collected payment for its services within the group.
Whereas the food industry is basically a “volume business", Herz could be operated with good profits in the long run in the premium segment as well, Albrecht said. (Moreover, profitability may be further boosted by entering new markets.)
Herz could go to bourse already today, Albrecht said, adding that this plan could become a reality within a year if favourable conditions on the stock exchange prevailed.
The latter was purchased by listed firm Forrás Rt and Herz was bought by Ottó Albrecht, the majority owner of Cashline Securities. Albrecht has not indulged in other than financial investments so far.
Albrecht told portfolio.hu that Herz was operating profitably even today and with minor changes it could be listed on the Budapest bourse within a year.
Herz has annual EBITDA (earnings before interest, tax, depreciation and amortisation) of around HUF 1 billion (EUR 4.06 million) and no debts. Herz targeted HUF 9 billion sales for 2004.
Operations at Herz are efficient, the company is not integrated vertically and has a staff on only 460. It buys semi-finished products and runs no slaughterhouse. The output of the company is 6,000 tonnes a year, 1,800 tonnes of which go to exports.
Albrecht said his short-term objective was to detach from Pick, which by itself could boost profits of Herz, as Pick has collected payment for its services within the group.
Whereas the food industry is basically a “volume business", Herz could be operated with good profits in the long run in the premium segment as well, Albrecht said. (Moreover, profitability may be further boosted by entering new markets.)
Herz could go to bourse already today, Albrecht said, adding that this plan could become a reality within a year if favourable conditions on the stock exchange prevailed.
