Lango focuses on revenue increase

Information prepared by Jolanta Gaudieša, Head of Communication Department.

The leading producer of ready-made and instant food products Ltd Lango , has concluded the first quarter of year 2009 with turnover of 783913 lats, which is about 8% less than 2008 in the same period. These findings call to stop, assess the situation and develop a targeted action plan to implement.

In the first quarter of 2009 Lango turnover dropped by 29% in the Latvian market compared with the corresponding period last year, and only thanks to a strategic level objective to enter the Lithuanian market Lango total turnover has dropped by 8%. Assessing the situation in the beginning of the year and following the decrease in consumer purchasing power the product prices have reduced by 15% - 20% which made it possible to stop the fall in turnover in Latvia.

The chairman of the Board of Ltd Lango Andrejs Fraimanis says: „Assessing the performance indicators of the beginning of this year the concrete plan has been developed with a view to maintain the current level of production, the company's competitiveness in the market and ensure a positive cash flow. Already in the first two months of the year we have been able to stop the fall in turnover and expect to increase it by 13% in Latvia and Lithuania through a series of tasks aimed at cost reduction and process optimization. Currently, the most essential is to focus on the revenue increase and expansion of export markets in parallel with the adopting of Lithuanian market.”

In the first months of this year, the company has reduced the costs of raw materials reviewing the whole range of options to purchase an equivalent quality product at a lower price in Latvia and abroad, the company has optimized the processes of logistics by making decision to merge it with the collaboration partner’s logistics in order to ensure timely product delivery to the customers. The company has set up the export department which focuses on sales expansion in Estonia and Scandinavia.

Lango in details:

Founded in 1992 by local businessmen Lango is a leading producer of prepared and instant food products. Due to investments of 2.5 million lats the enterprise has established a new production unit, pursuant to legislation and European Union's standards, and introduced innovative technologies which allow extending the realization term of products without adding harmful for health preservatives. The enterprise produces salads, pancakes and sandwiches. One the 17th of June 2008 the subsidiary company UAB Lango LT was founded and active adopting of the Lithuanian market was started with the aim of the first year to reach turnover of 1.4 million euro.

Additional information:
Jolanta Gaudieša
Ltd Lango
Head of Communication Department
Phone: +371 6 784 7262, mobile: +371 2 9219704
E-mail: jolanta.gaudiesa@lango.lv