Čađenović: We expect a good business result from "Plantaža"

The business result of Plantaž last year should, according to existing projections, be 6,7 million euros better than in 2022, said company director Igor Čađenović, adding that it will be negative in the amount of 3,3 million.

"What, at this moment, based on preliminary indicators, we can announce is that we expect a good business result, as a result of the responsible and dedicated relationship of the management and all employees in the company," said Čađenović in an interview with the Mina-business agency.

He added that, based on the realized income and expenditure for ten months last year and their projection, Plantaže will achieve record income in the last ten years in the amount of 32 million euros, which is four million or 14 percent more than in 2022. Projected expenditures for last year are, as expected and foreseen in the plan, three percent higher than in 2022.

"In the structure of expenditures, the largest increase is recorded in the costs of materials and energy, which are over two million euros higher, and there are dominantly higher costs of fertilizers and protective agents. Labor costs increased by 11 percent compared to 2022, primarily as a result of the agreement of the company's management with the Trade Union, in order to gradually return to calculations from the time before the introduction of restrictive austerity measures and thus amortize significant inflationary shocks in the previous period, but and the increase in the cost of transportation and food for workers during the last year," explained Čađenović.

He believes that he will not be immodest if he says that the current administration and management, together with the employees, have done a great job.

"In relation to the current circumstances and exact indicators, we can absolutely, with certainty, say that we have put Plantaže back on the right track and on the road to recovery. The achieved results, as well as the numerous initiatives we undertook in the previous period, led to significant positive effects for the company and represent a good basis and foundation for future development," said Čađenović.

He added that these claims are best supported by the indicator of business success, where after four years a positive EBITDA in the amount of over two million euros was projected.

"In today's market conditions and circumstances, it is simply hard to believe that a large system functions without the support of banks. Plantaže is, I believe, one of the few companies in Montenegro that for the past few years provides all its investments from its own income," said Čađenović.

Last year, plantations invested 1,6 million euros for the purchase of agricultural machinery and production equipment.

"With regular, credible and transparent financial reporting, we have earned the positive opinion of external auditors for the last two years and thus regained the trust of shareholders, creditors, investors and the general public in business, which is very important from the perspective of the company's future development," said Čađenović.

According to him, the company strives to develop a professional and responsible attitude towards the company, owners and employees in the direction of reaching the common goal, which is complete recovery and prosperity.

"At the same time, we are aware that there are still many challenges waiting for us on the road to recovery, which we hope that, with the active participation and support of the state, we will be able to overcome," said Čađenović.

He announced that the company is very proud of the sales results of the last year, in which they achieved growth in almost all markets. Sales on the Montenegrin market are recording record results and are 20 percent higher than in 2022.

"Here, I would especially like to highlight the significant growth of premium category products, which is 20 percent higher than the record year of 2019. Also, in the last year, sales growth of four percent was achieved in foreign markets. We are particularly pleased with the increase in sales achieved in the countries of the region, which we consider an additional success when taking into account the serious development of the regional wine scene and the increasing number of wineries in those markets," said Čađenović.

He stated that the company's total liabilities at the end of last year amounted to around 43 million euros.

"Plantation's biggest debt consists of obligations to the Revenue and Customs Administration (UPC), commercial banks and the Investment Development Fund (IRF). It is important to emphasize that last year we reduced our liabilities by three million, primarily to creditors and suppliers," explained Čađenović.

He said that solving the company's tax debt is one of the priority goals, to which the new administration is actively committed. "The debt to UPC based on taxes and salary contributions is currently 14,5 million euros. In the previous period and through intensive discussions and negotiations with representatives of the Government and UPC, we sought an adequate solution. At the last meetings, during December, it was agreed to pay off the debt to UPC through the disinvestment of the land, along with the regular payment of current tax claims," ​​Čađenović announced.

He said that he hopes that this important issue will be resolved as soon as possible, so that the Government, as the majority owner, would send a clear message of support to the Plantations.

Čađenović said that Plantaž's current loan obligations amount to 18,4 million euros.

"Obligations are settled regularly, at the latest within one month of the due date. Liabilities to commercial banks and the IRF were reduced by two million euros during the last year," said Čađenović.

He said that Plantaže is one of the largest employers in Montenegro and employs around 620 permanent and around 500 seasonal workers on an annual basis.

"Compared to 2019, we managed to optimize the number of workers, so taking into account the number of regular employees and the number of employees hired through an employment agency, we recorded a decrease of about ten percent, with a tendency to further decline. It is also important to point out the problem of misuse of sick leave, so at almost any time about ten percent of employees are on sick leave, which greatly complicates the organization of work, as well as increasing costs, because we are forced to employ additional labor in order to compensate for the absence of those temporarily absent." said Čađenović.

He added that it is a problem that the company cannot solve on its own, but requires the active participation of competent state authorities.

Čađenović reminded that at the beginning of November, a new Collective Agreement was signed with the representatives of the Trade Union, which is harmonized with the Labor Law and the General Collective Agreement and is an important document from the aspect of future overall business improvement.

"In addition to the aforementioned adjustments, we used the opportunity to, as far as possible, change certain job complexity coefficients, so we partially eliminated the previous illogicalities and non-compliances," said Čađenović.

He stated that the lack of manpower is a problem that the Plantations have been facing for years and that is becoming more and more pronounced.

"We continuously make efforts to solve this issue in a timely and adequate manner. We are deeply aware of the fact that today it is very difficult to find labor and we are trying in every way to find adequate solutions in order to ensure a continuous production process. By purchasing new machinery (five tactors), attachment machines (nine new atomizers) and chemical desiccants, as well as by improving conditions, we tried to reduce the need for hiring seasonal labor last year," said Čađenović.

He added that the plan is to purchase additional harvesters, which will greatly reduce the need to hire seasonal labor.

"We are trying to make up for the lack of local workforce, as well as those from the region, which has traditionally been dominant in Plantaže, especially during the harvest period, from other markets. It is certainly an issue that does not burden Plantaže alone, but the entire economy, and we believe that the new legal solutions that are being announced and the procedures in the field of work and employment will help a lot to overcome this problem," said Čađenović.

He stated that events related to the former management of the company cause difficulties in business, as well as that the outcome of court proceedings may affect financial performance.

"All this affects the company's reputation and image. Only with patient and good work and results can we neutralize the negative consequences that such things inevitably produce," said Čađenović.

According to him, the management does everything to satisfy the needs and wishes of customers and consumers and to meet the demands of the markets where they are present, and there are over 40 of them on all continents.

"Accordingly, we are planning novelties. At the same time, we follow current trends and continuously work on the development and creation of new products both in the segment of wine and in the segment of strong alcoholic beverages, so it is certain that there will be novelties in the coming year as well", announced Čađenović.

Opening new markets, he added, is a priority in which efforts are continuously invested in order to ensure the largest and best placement of products.

"Entering any new market is a process that lasts and requires large investments. Last year, for the first time, we shipped containers of our wines to three new markets, and I hope that this year we will continue to open new perspectives for wines that the whole world trusts. In this case too, we expect stronger support from our economic diplomacy in the coming period," said Čađenović.

He added that the company has a lot of work and many challenges ahead of it, including those that cannot be influenced by the human factor, namely climate change and everything that it brings with it.

"This year we are expecting a new business strategy that will define the future development perspectives of Plantaž as one of the most valuable companies in majority state ownership and the most valuable brand that Montenegro has. The aim of this administration is only one - that the Plantations in the coming period continuously and at all levels manifest tendencies of growth and development", said Čađenović.