Fozzy Group turnover increased by 1/3 in 2007 comparing to 2006 13.03.2008

Fozzy Group turnover in 2007 exceeded 2006 year results for more than one third to USD 1.5 billion. As of today retail business of the Group consists of 144 Silpo supermarkets, 120 Fora convenience stores, and 4 Fozzy Cash&Carry hypermarkets.

In 2007 Fozzy Group’s retail business was tangibly expanded: 32 Silpo supermarkets were opened, 60 Fora conveniences, and 1 Fozzy Cash&Carry. Other businesses were developed thanks to organic growth, poultry business was enhanced with Uzhgorod poultry farm acquisition. To meet high speed growth pace the Group invested over USD 295 million which is by 30% more than 2006 year investments. One of the Fozzy Group’s major achievements in 2007 was Premiya private label successful promotion. The PL’s weekly turnover grew up to USD 1 million, and its share in the Group’s total retail turnover made 3%. Category penetration share of Premiya products was about 15-25% in average.

Fozzy Group’s development strategy for 2008 is to keep development pace of 2007. As planned the Group intends to open at least 25 Silpo supermarkets, 15 Fora conveniences, and 2 Fozzy Cash&Carry hypermarkets till the end of the year. Also restaurant business will be enhanced with 3 new restaurants of different formats opening in Kyiv. To ensure development plans realization Fozzy Group plans to invest over USD 230 million in all businesses. With all these Fozzy Group expects to make USD 2.8 billion turnover in 2008.

Volodymyr Kostelman, President of Fozzy Group: “Our strategic plans in 2008 expect to have organic growth of other businesses and dynamic expansive development of the retail business. With this purpose we continue to explore deals with other market players, and for the first time in the company’s history will start to build retail outlets from scratch by ourselves. In 2008 we plan to pay attention as to the geography boost as well as to the quality improvement programmes in our chains. For this we’ll continue with customer insights researches to meet consumers’ expectations".

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