Nestle Bulgaria to Invest 4.6 Million in 2018

Marian Marinov, the financial manager of Nestle Bulgaria commented during a press conference that ever since the company set foot in Bulgaria in 1994 it has invested over BGN 260 million.  Last year, the company has invested 6 million and this year it is supposed to invest in BGN 4.6 million.

The main portion of the investments is going to be spent on higher labor productivity, development of new products, staff training, and energy efficiency. Safety is also going to receive decent amounts of investments, according to Marinov.

Over the last 10 years, the company has invested an average of BGN 300,000 per year in staff training,  BGN 2.8 million in new product development and 1.2 million in infrastructure. "Nestle Bulgaria" invests an average of 550,000 per year in environmental projects and 1.5 million in improving product quality.

For last year, the company reports a total income of BGN 258.12 million and 23.3 million profit (9.02% of the revenue). In 2016, the company had an income of 257.24 million but the profit was 28.5 million or 11.07% of the income. Marinov explains this with a recent increase in the prices of goods and materials needed for production.  The first third of 2018 marks 54.1 million in sales revenue which means 6.8% organic growth and a 4.6% real internal growth, the company announced.

"Nestle Bulgaria" operates in several directions - coffee, culinary products (under the brand "Maggi"), chocolate desserts, baby food, pet food, cereal and coffee machines. According to a report by "Nielsen", date from December 2017 and January 2018 points to "Nestle" being the absolute leader on the coffee market in Bulgaria, holding 40.6% of the market. This is interesting because the company does not sell coffee beans or ground coffee (which speaks volumes on the types of coffee Bulgarians prefer). "Nestle Bulgaria" leads the capsule coffee market with 80.9%, instant coffees (59.2%), coffee blends (71.1%), culinary products (62.1%) and cereals (37.5%). The company takes the second place in the chocolate desserts (15.5%), pet food (23.3%) and baby foods (16.6%) sectors.

The company's factory in Sofia is one of the three factories in Europe that are licensed to make Kit Kat for the continent. The other two are in York and Hamburg. Data, announced by company representatives explains that the Sofian factory of Nestle has a yearly production of over 15,000 tons and that 90% of it is Kit Kats and 40% of all the Kit Kats are meant for export. "Nestle Bulgaria" exports goods to 43 countries around the world.

Image source

Vasil Manev

Vasil Manev is a student in Computer Science and an aspiring columnist, studying in Heidelberg, Germany.

Comments (0)

Like Our Page on Facebook

Like our page to make sure you see all of our NEW articles!

Click to

Sign Up For Our Newsletter

Subscribe and stay informed about all important events!