Polish meat business expands workforce, eyes new export markets

By Jaroslaw Adamowski

- Last updated on GMT

Polish meat business expands workforce, eyes new export markets

Related tags: Poultry, Pork

Polish meat processor ZM Henryk Kania expanded its workforce in 2018 by adding 124 new employees to its existing staff of 822.

Last year, as much as 96% of the company’s sales were generated in the domestic market. However, in a letter addressed to ZM Henryk Kania’s shareholders, the company’s president Grzegorz Minczanowski declared that 2019 would allow the company to “increase its foreign sales share [in its revenues] not only through raising sales in the countries in which we are already present, but also through entering new markets, including those outside Europe​”.

Profit rises despite lower sales

In 2018, the remaining 4% of sales was generated through exports to other European Union member states, translating into revenues of some PLN43.4 million (€10.1m). In total, ZM Henryk Kania posted sales of PLN1.14bn (€266.4m) last year, a decrease of 19% compared with 2017, according to data from the company’s latest annual financial report. Despite the lower sales, the meat business managed to raise its net profit to PLN64.4m (€15m) in 2018, up 21% year on year.

The financial report outlined the company’s plans regarding investments in its production capacities.

In 2018, the company made investments related to the expansion of its production facilities and their fitting with new machinery and devices​,” the meat business said in the report. “In 2019, Zakłady Mięsne Henryk Kania will introduce innovative solutions to implement further automation and robotisation of production processes, which will result in … increasing the ​[company’s] volume capacity … in ready to eat products​.”

It is noteworthy that, earlier this year, ZM Henryk Kania announced in a filing to the Warsaw Stock Exchange (WSE) that it had launched a procedure to select an advisor to support the company in its negotiations with a potential “industry or private equity​” investor. The move came “in relation to an observed increased interest in the company from potential significant and strategic investors​”.

Portugal’s Jeronimo Martins, owner of the Poland-based Biedronka discount store chain, remained ZM Henryk Kania’s main retail partner in the Polish market, with a stake as high as 64%. The meat business also sold its products through numerous other foreign-owned retail chains, such as Auchan, Carrefour, Kaufland, Makro, Netto, Lidl and Intermarché.

Specialised in pork meat products, ZM Henryk Kania makes hams, sausages, dry sausages, frankfurters, Poland’s traditional kabanos smoked pork sausage, pâtés, pork jerky, and bacon crisps, as well as other products. The meat business offers its output under the Henryk Kania and Maestro brands.

Related topics: Poland, Poultry, Industry & Markets, Pork

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