Zhoda Investments announces an operational update

Ahead of today's Annual General Meeting, Zhoda Investments ("Zhoda") announces an operational update. Following the outbreak of Covid 19 earlier this year, Zhoda took swift measures to adapt the operations to the new market conditions. Lower oil prices and travel restrictions have affected sales and profits in both the oil and wine operations, but have also opened up new business opportunities.

Wine operations

Croatia is one of the countries within the EU with the lowest number of persons infected by the Corona virus. Since June citizens of all EU countries are free to enter Croatia. The restaurant and hotel sectors that were closed for a couple of months have now opened.

Zhoda's two wineries Testament Winery and Black Island Winery have continued to build their product portfolio and strengthen their brand. The first step in their sales strategies have been to focus on the local Croatian HORECA segment (hotel, restaurant, café). With increasing brand recognition, low logistics costs and no alcohol tax the home market continues to be the primary market. The company's wines are sold in over 200 Croatian restaurants, a couple of which are awarded with a star in the Michelin Guide.

Already in 2019 the company started to address the retail segment, that is supermarkets and wine boutiques. Sales in this segment has partly compensated for the Covid related decrease in HORECA. The company is happy to announce that over 100 stores in each of the nationwide retail chains Konzum and Tommy now carry the company's wines.

Export to other countries is a smaller but increasing share of sales. Establishing a network of importers is a long-term mission and it is therefore satisfying that the company has achieved exports to around 10 countries. In a separate press release published today, the company announced that it has won a tender at the Swedish state alcohol retail monopoly Systembolaget that will enable the company to sell a babic grape wine at 115 stores throughout Sweden starting December this year. Prior to this, the wines were only included in the online ordering segment. The presence on the shelf will significantly increase sales in Sweden.

The company has doubled the sales of bottles during each of the past two years. Sales during the first six months of this year amount to 21,000 bottles, which can be compared to sales of 45,000 bottles for the 12 months of 2019. Despite considerably poorer market conditions, the company has during the first six months managed to reach almost half of the volumes for the whole year 2019.

The vineyard is developing well and the company's winemakers are looking forward to the harvest later this summer.

Oil operations

The world market oil price has been volatile in 2020. The average Brent price during the first six months of the year amounted to 42 dollars per barrel, compared to 66 dollars per barrel in the prior year. It is satisfying the following the lowest point at 18 dollars per barrel the price has rebounded and at least temporarily stabilized at around 40 dollars per barrel, a price level at which the company can produce oil with profitability. It is important to note that the operator's largest cost item is the variable production tax that is directly related to the oil price, which softens the negative effect of the drop in revenue at lower oil prices.

Production during the first five months has been stable during the year and amounted to 203 barrels per day compared to 238 barrels during the same period last year. It is the company's long-term objective to increase production, but during the past few months the operator has focused on day-to-day repair works and not performed more complex workovers that will increase production in the longer term.

The operator has during the year sold oil either at the state auctions or directly to a refinery. The spread of the Corona virus has been relatively low in Ukraine, but there have still been considerable effects on the economy. Less developed market economies are often hit harder, partly due to a lack of liquid funds. To minimize credit risks, the operator sells and delivers oil only on prepayment. Due to the lack of liquidity in the market, the company has therefore built up inventory that is larger compared to last year. The company does not foresee any risks in selling the oil in the long-term.

New investments

Zhoda is evaluating new investment opportunities. The new market conditions affect most nations, industries and companies negatively, but they also open up opportunities for companies that stay strong.

For more information, please contact:

Robert Karlsson, CEO Zhoda Investments AB

+46 709 565 141, [email protected]

www.zhodainvestments.com

About Zhoda Investments

Zhoda Investments invests in selected unlisted European ventures and drives growth and profitability through active ownership and an entrepreneurial approach. Zhoda owns Testament Winery, an organic winery in Dalmatia with a 47-hectare state of the art vineyard mainly producing red wine from the local Babic grape. Zhoda is also the owner of Black Island Winery, a winery on the Dalmatian island of Korcula that produces white premium wines from the indigenous Posip grape under the brand Merga Victa. The group also holds a 45 per cent interest in the Lelyaki oil field in Ukraine with 2P proven and probable oil reserves of 8 million barrels net to the company. Zhoda Investments is actively pursuing new investments. For more information, visit www.zhodainvestments.com.

This is an English translation of the Swedish original. In case of discrepancies, the Swedish original shall prevail.

Kommuniké från årsstämma i Zhoda Investments

Vid årsstämma i Zhoda Investments AB fattade aktieägarna i huvudsak följande beslut.


Communiqué from the Annual General Meeting in Zhoda Investments

The shareholders of Zhoda Investments AB passed the following main resolutions at the Annual General Meeting.


Zhoda Investments publicerar årsredovisning

Zhoda Investments ("Zhoda") publicerar idag årsredovisningen för 2021. Bolaget redovisar en stark tillväxt och ökad lönsamhet för räkenskapsåret. 


Zhoda Investments publishes its annual report

Zhoda Investments ("Zhoda") publishes its annual report for 2021. The company records a strong growth and improved profitability for the year.


Kallelse till årsstämma i Zhoda Investments AB (publ)

Aktieägarna i Zhoda Investments AB (publ), organisationsnummer 559030-3490 (nedan "Bolaget") kallas till årsstämma den 22 juni 2022 kl. 15.00 på Grevgatan 5 (Vinkällaren Grappe) i Stockholm.


Notice to Annual General Meeting of shareholders in Zhoda Investments AB (publ)

The shareholders of Zhoda Investments AB (publ), corporate identity number 559030-3490 (hereinafter the "Company"), are hereby given notice to attend the Annual General Meeting to be held at 15.00 CET on 22 June 2022, at Grevgatan 5 (Vinkällaren Grappe) in Stockholm.


Zhoda Investments nyemission övertecknad

Zhoda Investments ("Zhoda") har framgångsrikt slutfört en nyemission med företrädesrätt för befintliga aktieägare. Nyemissionen som övertecknades med 11% tillför bolaget 13,1 miljoner kronor före emissionskostnader.


Zhoda Investments rights issue oversubscribed

Zhoda Investments ("Zhoda") has successfully completed an issue of shares with preferential rights for shareholders. The issue was oversubscribed by 11 per cent and raised SEK 13.1 million before issue costs.


Zhoda Investments inleder teckningsperioden och publicerar memorandum

Den 19 april 2022 offentliggjorde Zhoda Investments ("Zhoda") att styrelsen beslutat att på basis av ett bemyndigande från årsstämman genomföra en nyemission med företräde för befintliga aktieägare. Idag inleds teckningsperioden och i samband med detta publicerar bolaget ett informationsmemorandum som beskriver bolaget och emissionen. Emissionshandlingar med information om hur man tecknar sig skickas ut till aktieägarna och information finns även tillgänglig på bolagets hemsida.


Zhoda Investments commences the subscription period and publishes an investment memorandum

On 19 April 2022, Zhoda Investments ("Zhoda") announced that the Board of Directors, based on a mandate from the AGM, had resolved to carry out an issue of shares with preferential rights for existing shareholders. The subscription period begins today, and the company therefore publishes an investment memorandum in Swedish with information on the company and the issue of shares. Issue documents with instructions on how to subscribe are being distributed to the shareholders and are also available on the company's website.


Zhoda Investments genomför företrädesemission på 13 miljoner kronor

Zhoda Investments ("Zhoda") genomför en företrädesemission på 13 miljoner kronor. Syftet är att ta den framgångsrika vinverksamheten i Kroatien till nästa nivå, att bevara och på sikt utveckla värdena i oljeverksamheten i Ukraina och att stärka den finansiella ställningen. Styrelse och ledning har lämnat avsiktsförklaringar att teckna sig för sina andelar på 6,3 mkr, vilket motsvarar 49% av den totala emissionen.


Zhoda Investments announces a preferential rights issue of SEK 13 million

Zhoda Investments ("Zhoda") has resolved to conduct a preferential rights issue of SEK 13 million. The issue will enable the company to take the successful wine operations in Croatia to the next level, to maintain and with time develop the oil operations in Ukraine and to strengthen the financial position of the company. The Board of Directors and Management have declared their intent to subscribe for their preferential rights, which amounts to SEK 6.3 million or 49 per cent of the maximum issue.


Uppdatering från oljeverksamheten

Zhoda Investments ("Zhoda") lämnar en operativ uppdatering om oljeverksamheten.


Operational update on the oil operations

Zhoda Investments ("Zhoda") announces an operational update on the oil operations


Bra skörd i Zhoda Investments vinverksamhet

Zhodas Investments helägda dotterbolag Testament Winery är Kroatiens första svenska vingård. Målet är att skapa Kroatiens bästa vin. Årets skörd uppgick till 250 ton druvor, vilket är en stor ökning från 100 ton föregående år.


Strong harvest in Zhoda Investments wine operations

Zhoda Investments' wholly owned subsidiary Testament Winery is Croatia's first Swedish winery. The goal is to create Croatia's best wine. This year's harvest amounted to 250 tons of grapes, which is a significant increase from 100 tons last year.


Zhoda Investments beviljas investeringsbidrag på 15 miljoner kronor för nytt vineri

Zhodas Investments helägda dotterbolag Testament Winery är Kroatiens första svenska vingård. Målet är att skapa Kroatiens bästa vin. Vingården har beviljats ett investeringsbidrag på upp till 15 miljoner kronor för att bygga ett nytt vineri för att öka och effektivisera produktionskapaciteten samt skapa nya intäktsströmmar från gårdsförsäljning och vinprovningar.


Zhoda Investments granted investment subsidy of SEK 15 million for the construction of a new winery

Zhoda Investments' wholly owned subsidiary Testament Winery is Croatia's first Swedish winery. The goal is to create Croatia's best wine. The company has been granted an investment subsidy of up to SEK 15 million for the construction of a new winery designed to increase and optimize production capacity and create new revenue streams from sales and tastings at the winery.




Följ oss

Om beQuoted

beQuoted publicerar nyheter, analyser och pressmeddelanden för investerare och journalister. Viktiga företagshändelser bevakas av vår egen nyhetsredaktion och vidaredistribueras i ledande finansiella medier.

Vi uppdaterar även nyhetsrum, Investor Relations och IR-webbplatser för företag som vill utveckla sina relationer med finansmarknaden.

Kontakta oss

beQuoted AB
Nybrogatan 34
Box 5216
102 45 Stockholm

08-692 21 90

Om beQuoted