OREANDA-NEWS. Vinnifruit, one of Ukraine’s largest juice producers, presented its strategic goals for the next few years at the investment forum hosted by Alfa Bank and Alfa Capital in Kyiv last week, the Alfa Capital Ukraine press-service reports. The company plans to increase juice output 3x and secure a 10% share of the domestic juice market by 2010. Currently, the company estimates its share at 6%, while the size of Ukrainian juice market is about 770 mln liters. According to Vinnifruit’s General Director Anatoly Goncharuk, the company is well positioned to increase production in the next few years without significant investment into new equipment. The company will now focus more on distribution and marketing to boost sales and also plans to launch new brands in other juice segments.

The company also aims for 1.5-2% of the CSD market by raising its output of carbonated soft drinks (CSD) at above-market rates. In mineral water niche, Vinnifruit expects to boost output 8x by 2010, thereby occupying a 2% market share. In terms of financials, the company expects output CAGR of 33-35% in 2006-2009, while its indicative target for the gross profit margin is 40-45% (30% in 2006), with a long-term EBITDA margin target of 20-21%.

Alfa Capital Ukraine's experts consider Vinnifruit’s strategic expansion plans to be very positive for the company’s investment case and maintain 'buy' recommendation, with a 12M target price of $92/share and 16% upside.