MIRA INFORM REPORT

 

 

 

 

Report Date :

4.12.2008

 

IDENTIFICATION DETAILS

 

Name :

EUROPEAN FOOD SA

 

 

Registered Office :

13 Septembrie 15 415600 Stei, jud. Bihor

 

 

Country :

Romania

 

 

Financials (as on) :

30.06.2008

 

 

Year of Establishment :

1999

 

 

Com. Reg. No.:

J5/892/1999

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacture of other Food Products

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

EUR 750.000,00

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Clear

NAME OF THE COMPANY

 

 

 

 

 

 

 

 

EUROPEAN FOOD SA


Principal Address

 

13 Septembrie 15
415600 Stei, jud. Bihor
Romania
Tel: +40-259-407218, +40-259-407220, +40-259-332447, +40-259-332455, +40-259-332471
Fax: +40-259-470005
Email: contact@europeanfood.ro
Internet: www.europeanfood.ro

Office:
Teatrului 1-2
410020 Oradea, jud. Bihor
Romania
Tel: +40-259-563707, +40-259-536067, +40-259-536094, +40-259-531495, +40-259-479406
Fax: +40-259-533107

Office:
Lucian Blaga 9
415600 Stei, Jud. Bihor
Romania
Tel: +40-259-333673, +40-259-333674, +40-259-333675, +40-259-333675

Branch production:
Al George Cosbuc 3
415200 Beius, Jud. Bihor
Romania
Tel: +40-259-321694

Branch production:
Pandurilor 16
415200 Beius, Jud. Bihor
Romania
Tel: +40-259-321784

Warehouse:
Splaiul Nicolae Titulescu 35
300166 Timisoara, jud. Timis
Romania

The subject company has 111 working units officially registered in Romania.

 

 

ICON number

 

9625960

 

National ID

 

J5/892/1999

 

VAT number

 

 12457015

 

 

 

 

CREDIT INFORMATION SUMMARY

 

 

 

Insolvency Information:

According to available information sources the company is not in a insolvency/preliminary/debt regulation proceeding.

 

 

Maximum Credit:

EUR 750.000,00

 

 

 

 

Payment Practices:

Payments are made irregularly.
There are no major payment incidents registered between 10.06.2001-10.06.2008..


The company is registered at 30.09.2008 with a debt to the State Budget of RON 18.765.238.For this amount enforcement procedures have been started.

 

 

Further Rating Information:

Researched company is categorized as a big company.
The company generated a turnover of RON 295.572.526 in the year 30.06.2008.

 

 

Debt Collection:

EUR 65.904,81 (Invoice date: 24.09.2001)
Status: closed positive

EUR 35.625,00 (Invoice date: 19.04.2007)
Status: closed positive (30.11.2007) - whole amount paid, debtor refuses to pay expenses and fees
Case received on: 21.11.2007

EUR 106.602,63 (Invoice date: 23.11.2007)
Status: closed positive (15.08.2008) - whole amount paid, debtor refuses to pay expenses and fees
Case received on: 17.03.2008

Only cases with a single case volume exceeding EUR 500 are shown.

According to the Debt Collection Department, the subject company paid the debt, but we haven't received the confirmation yet.

 

 

COMPANY DETAILS

 

 

 

Established:

1999

 

 

Registration:

No. J5/892/1999
30.11.1999
Bihor, Romania

 

 

Legal Form:

joint stock company

 

 

History:

The company is part of the EUROPEAN DRINKS Group of companies, the biggest Romanian producer of beverages and food products.

 

 

Capital:

Nominal capital:

 

RON 42.419.198,61

Number of Ordinary shares:

157.108.143

 

Value per share of Ordinary shares:

RON 0,27

 

 

Paid-up capital:

 

RON 42.419.198,61

 

Paid other than in cash:

RON 27.672.652,93

 

 

 

Shareholders:

Full Name

Function

Address

Equity capital

MICULA VIOREL
Nationality: SE

Shareholder

Sturevagen 5A
17155 Fagersta
Sweden

46,73%
73.414.958 Ordinary shares

MICULA IOAN

Shareholder

Sturevagen 5
Fagersta
Sweden

46,70%
73.364.959 Ordinary shares

RIENI DRINKS SA
Registration: No. J5/4785/1994, 15.12.1994, Bihor, Romania

Shareholder

Principala 620
417415 Rieni, jud. Bihor
Romania

6,54%
10.277.147 Ordinary shares

MICULA EEVA BIRGITTA

Shareholder

Sturevagen 5
Gagersta
Sweden

0,03%
50.000 Ordinary shares

EUROPEAN DRINKS SA
Registration: No. J5/2371/1993, 25.06.1993, Bihor, Romania

Shareholder

Lucian Blaga 8
410222 Stei, jud. Bihor
Romania

RON 291,33
1.079 Ordinary shares

 

 

Management:

Full Name

Function

Address

MICULA IOAN

Managing director

Sturevagen 5
Fagersta
Sweden

SUEDRO PROD SRL

Managing director

FLAMMARION 2 Bl.PB 11,Ap.9
3700 ORADEA
Romania

COSMA HORATIU

Head of Marketing

Romania

PODARU Mihai

Head of Commercial department

Romania

BULZAN TRAIAN

Head of Finance and Accounting

Romania

PELEA FLORINA IRINA
22.09.2003 - Present

Head of Finance and Accounting

Hirsesti 88
Cimpani, Jud.Bihor
Romania

 

 

Related Companies:

affiliate
ABC MEDIA SRL , Romania , National ID: J5/171/2001

shareholder of
ALIMENTARA 142 SA , Romania , National ID: J5/672/1999

shareholder of
COMCEREAL SA , Romania , National ID: J35/291/1996

shareholder of
EDICOM PRESS SA , Romania , National ID: J5/4917/1994

affiliate
EUROPEAN DRINKS SA , Romania , National ID: J5/2371/1993

affiliate
INTERSTOCK EXIM SRL , Romania , National ID: J5/2372/1993

shareholder of
MEDIA PRESS CENTER SRL , Romania , National ID: J5/1258/2002

affiliate
MULTIPACK SRL , Romania , National ID: J5/178/2002

affiliate
ORIGINAL PROD SRL , Romania , National ID: J5/4609/1994

subsidiary
PLANET DRINKS s.r.o. , Czech Republic , National ID: 25689428

affiliate
RIENI DRINKS SA , Romania , National ID: J5/4785/1994

affiliate
SCANDIC DISTILLERIES SA , Romania , National ID: J5/104/2000

affiliate
TONICAL TRADING SRL , Romania , National ID: J5/4519/1994

affiliate
TRANSILVANIA GENERAL IMPORT-EXPORT SRL , Romania , National ID: J5/347/1991

European Drinks is the largest group in the Romanian food and beverages industry and is based in Oradea, Bihor County. The group owns Izvorul Minunilor mineral water, Regal and Fruttia sauces, Natty wafers and Burger beer. It has annual turnover of more than 500 million euros.

Both of the European Drinks owners are also involved in the media industry through their television stations, National and N24, and the daily paper Realitatea Romaneasca. They also own stakes in hotel companies.

 

 

 

KEY DATA ON OPERATIONS

 

 

 

Subject of Operation:

NACE
  1089 Manufacture of other food products n.e.c.


Main products:
-ice-cream and cocoa powder
-sugar and other sweet products
-tomato ketchup and spices
- beer

Company's products are distributed by affiliated company TRANSILVANIA GENERAL IMPORT-EXPORT SRL (which owns over 200 warehouses all around the country and a fleet of over 2.000 vehicles of various weights and models (Volvo, Renault, Mitsubishi, Dacia, Roman)).

Traded brands: Naty Premium, Naty, Trompi, Viva, Olla, Rollo, Regal, Rienergy, Vitatonic, Burger, Servus, Mondo di pasta

Partners: Metro, Tesco, Kaufland, Billa, Auchan and Delhaize
NACE codes given are based on the most recent NACE Revision 2.

 

 

Company Development:

300: Satisfactory business development

 

 

 

 

Key Data:

Amounts shown in Romanian Leu (New) (RON)

 

01.01.2008-30.06.2008

2007

2005

2004

Turnover

295.572.526

251.935.780

513.602.398

449.312.996

Fixed assets

687.622.417

709.407.987

628.486.856

567.090.846

Equity capital

181.459.899

197.980.834

211.633.838

189.049.075

Profit after taxation

0

30.295.832

1.388.557

15.735.026

Operating result - profit

1.985.400

7.667.776

12.966.217

10.512.072

 

 

01.01.2008-30.06.2008

2007

2005

2004

Return on assets ( ROA )
Net profit / Total assets

0

0,03

0,00

0,02

Return on equity ( ROE )
Net profit / Shareholder equity

0

0,15

0,01

0,08

 

 

 

Workforce:

 

30.06.2008

2005

2004

2002

Total workforce

1.854

1.558

1.486

994

 

 

 

Imports:

Germany, Hungary, Netherlands

 

 

 

Exports:

 

Czech Republic, Moldova, Republic of, Italy

 

 

 

Major Customers:

Domestic: TRANSILV GEN IMP-EXP, ABC PLUS MEDIA, COMTEXIM,
GENERAL TRANSILVANIA EXIM, EUROPEAN DRINKS, SCANDIC DISTILLERIES
International: EUROPEAN DRINKS, PLANET DRINKS S.R.O.PRAGA, GLOBAL DRINKS S.R.O., GLOBAL FOOD POLAND SP

 

 

 

Major Suppliers:

Domestic:ORIGINAL PROD,EUROPEAN DRINKS, RIENI DRINKS, EDRI TRADING, SCANDIC DISTILLERIES, STARMILL, PETROLSUB, RONDOCARTON, ABB, BUTAN GAZ ROMANIA, ENZIMES&DERIVATES ROMANIA, ALFA LAVAL, 3M ROMANIA, ADIRAN PETROCHEMICALS, ARNAUD ROMANIA CHEMICALS, ROMTRANS, HENKEL ROMANIA, ELTON IMPORT EXPORT
International: KARLSHAMNS, NATIONAL STARCH, FIRMENICH, ALBADOMU, MALATA, QUEST INTERNATIONAL, DOHLER, HOOGWEGT, AVESTA POLARIT, RADICI FILM, BALL PACKAGING, KRONES 2, SOGEM, NOR-REG, HEMA, SIDEL, KRONES, ENGEL, MHT LUXEMBURG, WINDMOLLER

 

 

 

Branches:

Office:
Teatrului 1-2
410020 Oradea, jud. Bihor
Romania
Tel: +40-259-563707, +40-259-536067, +40-259-536094, +40-259-531495, +40-259-479406
Fax: +40-259-533107

Office:
Lucian Blaga 9
415600 Stei, Jud. Bihor
Romania
Tel: +40-259-333673, +40-259-333674, +40-259-333675, +40-259-333675

 

 

 

FINANCIAL INFORMATION

 

 

 

Financials:

Amounts shown in Romanian Leu (New) (RON)  

01.01.2008-30.06.2008

2007

2005

2004

 



BALANCE SHEET

 

FIXED ASSETS

687.622.417

709.407.987

628.486.856

567.090.846

 

Intangible assets

29.223

41.745

0

 

 

Tangible assets

678.778.613

700.551.913

625.254.525

 

 

Financial fixed assets

8.814.581

8.814.329

3.232.331

 

 

CURRENT ASSETS

269.469.803

232.059.907

166.521.623

168.797.989

 

Inventory

99.523.844

123.845.638

119.027.028

109.832.443

 

Claims (receivable)

164.940.895

104.170.181

46.900.922

58.471.883

 

Liquid assets

5.005.064

4.044.088

593.673

493.664

 

Short term financial investments

 

0

 

 

 

Prepaid expenses

2.591.819

1.530.008

0

0

 

TOTAL ASSETS

959.684.039

942.997.902

795.008.479

735.888.836

 

Equity capital

181.459.899

197.980.834

211.633.838

189.049.075

 

Share capital

42.419.199

42.419.199

42.419.199

42.340.645

 

Subscribed and paid capital

42.419.199

42.419.199

42.419.199

42.340.645

 

Reserves

9.085.817

9.085.817

 

5.275.974

 

Long-term liabilities

332.386.039

443.634.204

324.675.856

363.063.900

 

Provisions for risks and charges

0

0

0

0

 

Total debts

778.224.140

745.017.068

583.374.641

546.839.761

 

Short-term liabilities

445.838.101

301.382.864

258.698.785

183.775.862

 

Deferred income

0

0

0

0

 

TOTAL LIABILITIES

959.684.039

942.997.902

795.008.479

735.888.836

 



PROFIT AND LOSS

 

Turnover

295.572.526

251.935.780

513.602.398

449.312.996

 

Total income

330.511.316

 

599.033.878

516.271.703

 

Operating income

300.926.707

262.571.246

532.524.660

 

 

Income from financial transactions (financial income)

29.584.609

41.041.238

66.514.218

 

 

Extraordinary income (extraordinary benefit)

0

0

0

 

 

Total expenses

347.032.251

303.812.482

597.593.483

500.490.299

 

Operating expenses

298.941.307

254.903.470

519.558.443

 

 

Expenses on financial transactions (financial expenditures)

48.090.944

18.412.180

78.035.040

 

 

Extraordinary expenses

0

0

0

 

 

Operating result - profit

1.985.400

7.667.776

12.966.217

10.512.072

 

Operating result - loss

0

0

0

0

 

Profit on financial transactions (financial profit)

0

22.629.056

0

 

 

Loss on financial transactions (financial loss)

18.506.335

0

11.520.822

 

 

Current result - profit

0

30.296.832

1.445.395

15.781.404

 

Current result - loss

16.520.935

0

0

0

 

Extraordinary profit

0

0

0

 

 

Extraordinary loss

0

0

0

 

 

Profit before taxation

0

30.295.832

1.445.395

15.781.404

 

Loss before taxation

16.520.935

0

0

0

 

Profit after taxation

0

30.295.832

1.388.557

15.735.026

 

Loss after taxation

16.520.935

0

0

0

 

Profit tax

0

0

56.838

46.378

 

 

 

Approximate Exchange Rates:

2007: 3,332 RON = 1 EUR
2006: 3,5245 RON = 1 EUR
2005: 3,6234 RON = 1 EUR
2004: 4,0532 RON = 1 EUR
2003: 3,7556 RON = 1 EUR
2005: 2,9137 RON = 1 USD
2004: 3,2637 RON = 1 USD
2003: 3,32 RON = 1 USD

 

 

 

Financial Comments:

Source of financials for 2007 and 30.06.2008: subject company

There are no financial data for 2006 published for this company by the Trade Registry and Taxation Office.

Effectively from July 1st 2005, the Romanian currency was redenominated so that 10,000 old lei(ROL) will be exchanged for 1 new leu (RON).
The financial statements of the companies will be published in new currency RON starting with 31.12.2005.
All financials for previous years displayed in the report were converted from ROL to RON.

 

 

 

Investments:

European Food & Drinks group is visiting countries such as Poland, Bulgaria, Ukraine and Russia to launch foreign production as part of regional expansion plans. ("Ziarul Financiar", 05.12.2007)

According to media sorces, the European Drinks Group has turned to the European Bank for Reconstruction and Development (EBRD) for a 250 million-euro loan. This debt facility will strengthen the operations of the European Drinks group and support the long-term investment and expansion of the group.

 

 

 

Bankers:

ABN AMRO BANK (ROMANIA) SA BUCURESTI SUCURSALA ORADEA
ORADEA

BANCA COMERCIALA ROMANA SA BUCURESTI SUCURSALA ROGERIUS-ORADEA
3700 ORADEA, M. SADOVEANU Nr.10 Bl.AN3 Et.P

BRD-GROUPE SOCIETE GENERALE SA BUCURESTI SUCURSALA JUDETEANA BIHOR - Account no. RO55BRDE050SA25197500500
410021 Oradea, Jud. Bihor, Regele Ferdinand I 4

RAIFFEISEN BANK SA
011857 Bucuresti, Sector 1, Piata Charles de Gaulle 15

UNICREDIT TIRIAC BANK S.A.BUCURESTI SUCURSALA MIHAI EMINESCU ORADEA
410042 Oradea, Jud. Bihor, Libertatii 8

 

 

 

Ratios:

 

01.01.2008-30.06.2008

2007

2005

2004

Debt Ratio
(Short term liabilities + Long term liabilities) / Total Assets

0,81

0,79

0,73

0,74

Quick ratio
(Current assets - Inventory)/Current liabilities

0,38

0,36

0,18

0,32

Current ratio ( CR )
Current assets / Current liabilities

0,60

0,77

0,64

0,92

Leverage
Long Term Liabilities / Total Equity

1,83

2,24

1,53

1,92

Return on sales ( ROS )
Net profit / Turnover

0

0,12

0,00

0,04

Return on assets ( ROA )
Net profit / Total assets

0

0,03

0,00

0,02

Return on equity ( ROE )
Net profit / Shareholder equity

0

0,15

0,01

0,08

Sales to Total Assets
Sales / Total assets

0,31

0,27

0,65

0,61

Days supply in inventory
Inventory / Turnover * 360 days

60,95

179,43

84,59

89,22

Days sales in receivables
Receivables / Turnover * 360 days

101,00

150,92

33,33

47,50

Days purchase in payables
Current Liabilities / Turnover * 360 days

273,02

436,64

183,85

149,29

Operating margin, in %
Operating result / Sales

0,67

3,04

2,52

2,34

Operating result / Total assets
Operating result / Total assets

0,00

0,01

0,02

0,01

Cash ratio
Cash / Current liabilities

0,01

0,01

0,00

0,00

Equity as % of total assets
(Equity capital / Total Assets) * 100

18,91

20,99

26,62

25,69

 



ADDITIONAL INFORMATION

 

 

 

Press Releases:

According to media information, Micula brothers have opened branches of the European Food & Drinks group in 8 countries, the oldest was in 1995 and the recently opened branch was in 2006, in Poland. ("Ziarul Financiar", 08.02.2008)

European Food & Drinks group owned by Micula brothers generated turnover worth 882.5 million euros (2,945.28m RON) last year, up around 10% on 2006, according to the data released by Viorel Micula, chairman of European Drinks. ("Ziarul Financiar", 25.01.2008)

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.49.90

UK Pound

1

Rs.74.30

Euro

1

Rs.63.42

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions