Delta won’t buy Agno
Delta Dairy, the dairy product subsidiary of Delta Holdings, is not interested in acquiring a stake in Agno Dairy, the northern Greek dairy factory put on the market recently by Agricultural Bank of Greece. Anthony Krontiras, managing director, told Kathimerini English Edition that «the price that Agricultural Bank is expected to ask for would be higher than our budget.» Cost aside, he said that Delta Dairy prefers to grow on its own rather than through acquisitions. Early this month, Agricultural Bank said it was offering a majority stake in Agno and management to a strategic investor. Non-binding expressions of interest are due by April 25 and the sales process is projected to finish in June. Agno’s sale has drawn the attention of other dairy companies Fage, Friesland Hellas and Mevgal. Delta’s stand is a reversal of its position two years ago when it teamed up with its rival, Fage, to make a bid for Agno on the grounds the move would contribute to restructuring in the sector and also keep milk production in Greek hands. The company’s decision to stay out of the Agno sale came as it increased its market share in northern Greece. Krontiras said Delta controls 30 percent of the beverages market in the region, 25 percent of the yogurt sector and 15 percent of the milk market. In the five-year period to 2001, it also boosted turnover by more than fivefold. He said the company is currently constructing its second milk pasteurization and bottling plant in the Sindos industrial park near Thessaloniki as the current factory in Tavros approaches full capacity. The new factory in northern Greece will have an annual milk production capacity of 100,000 tons. Budgeted at 11.7 million euros, the plant is scheduled to start operations next year. Krontiras said Delta Dairy is expecting a 15-percent jump in turnover this year to 300 million euros and a 25-percent increase in net pretax profits to 15.6 million euros. Sales in 2001 rose by 12 percent to 260 million euros while net pretax profits surged by 25 percent to 13.5 million euros. Operating profits increased to 13.3 million euros, up by more than 30 percent. The Delta head said growth in 2001 has been «satisfactory despite the tight market due to the recession and intense competition.»French dairy company Danone holds a 30-percent stake in Delta Dairy.
