Zhoda Investments publishes its annual report

"Despite challenging marketing conditions in 2021, Zhoda Investments has recorded a strong growth and a positive operating result of SEK 4.5 million. The sales of bottles in the wine operations doubled for the fourth consecutive year and the oil operations has contributed a positive result to the group. I am looking forward to further presenting our strategy and operations when we shareholders meet at the upcoming annual general meeting", says Robert Karlsson, CEO of Zhoda Investments.

Wine operations

Testament Winery is Croatia's first winery. The goal is to create Croatia's best wine and to become the country's leading exporter of premium wines. During 2021, sales amounted to 200,000 bottles, which is an increase of 140% compared to 82,000 bottles the year before. The sales has doubled for four consecutive years.

Testament Winery is well positioned on the market to benefit from current wine trends. Although tradition is strong in the wine industry, it is also rapidly changing. Modern wine consumers are seeking out under-the-radar and "new" wine regions, where Croatia often fits in despite its over 2,000-year-old wine tradition. Wine consumers wish to try new and local grapes. Testament Winery can boast as many as seven local Dalmatian grapes. In addition, Testament's wines are sustainably produced in its organic vineyard.

During the year, Testament has strengthened its brands and further penetrated new markets. Several of the wines have won gold medals in Decanter World Wine Awards, the world's largest and most influential wine competition. The wines are served in six Michelin star restaurants. During 2021 the company launched a new product segment with exclusive wines sold at higher prices and margins.

Testament Winery's 50-hectare vineyard is organic. The harvest in 2021 amounted to 250 tons, which is significantly higher than the 100 tons in 2020.

The company's vision is to reach sales of 1 million bottles per year. To reach that target, Zhoda is taking steps to construct a completely new winery at Testament Winery. During 2021, the company received an approval for an investment subsidy of SEK 15 million from EU funds directed towards Croatia's wine sector.

Oil operations

Zhoda Investments has a minority interest in a Ukrainian oil company. Through a wholly owned subsidiary, the company holds 45 per cent of the operator of the Lelyaki oil field. During 2021, production amounted to 47,000 (72,300) barrels net to Zhoda Investments. It is the company's objective to increase production, but in the light of the uncertain market conditions in 2021 and the Russian invasion of Ukraine in 2022 the field operator has concentrated its efforts on simpler workovers to maintain production rather than more complex and expensive ones to increase production.

The oil operations contributed an operating profit of SEK 7,810 (-5,643) thousand. During the year, Zhoda Investments received SEK 1 (1) million in dividends from the oil operations. 

Financial key ratios for the group

 Annual general meeting

The annual report in Swedish, attached to this press release, is available on the corporate website www.zhodainvestments.com. The company has published a separate notice to the annual general meeting to be held in Stockholm on 22 June 2022. The notice can be found at the company's website.