We brought the company that was on the verge of bankruptcy back to life and turned it into an operationally efficient organization that today has a plan and a vision of how to be sustainable in the long term. "Plantaže" records annual revenue growth of over 20%. In order to protect the company's assets, this management prosecuted several harmful decisions of the former management, and their judicial epilogue is still awaited. A business strategy has been prepared that will make "Plantaže" a modern company and a driving force for economic growth by 2030," said Nebojša Vuksanović, president of the board of directors of "Plantaže" in an interview with "Vijesta".
At the beginning of 2021, this company had debts of over 45 million euros, received double negative opinions from auditors with direct suspicions that the financial statements were falsified, was facing an employee strike, without money for the preparation of spring works and the maintenance of vineyards and orchards, with frequent forced billing and account blocking...
Three years ago, you took over the management of the board "Plantaža". What was the state of the company when you inherited it, and what is it like now?
It is common knowledge in what state we found the company in April 2021. The company was facing numerous problems and concrete stabilization measures needed to be taken urgently. In three years, we sorted out the balance sheets, reduced total debts, agreed on a reprogram with all creditors and suppliers, increased revenues, established regularity in the payment of salaries to employees and reduced the total budget for wages in relation to total costs. Also, we improved all aspects of business and restored the trust of our business partners. The company records annual revenue growth of over 20%, and we are especially proud of the significant growth in catering revenue. Precisely in order to protect the company's assets, this management in the previous three years prosecuted several harmful decisions of the former management, and their judicial epilogue is still awaited.
By revaluation of fixed assets, we increased their value from 75 to 410 million euros.
The company, which received a negative opinion from the external auditor and a double negative opinion from the State Audit Institution (DRI) for 10 years in a row, has had all opinions positive and without reservations since 2021. This means that we objectively began to show the real state of the company and we can say that we have financially stabilized the company.
In 2023, for the first time after four years, the plantations achieved a positive result (EBITDA) with the difference between income and expenses, which does not include depreciation, taxes and interest, of around 800 thousand euros. This shows that the company can be self-sustaining. With this dynamic, the plan is for EBITDA to be over 3,5 million euros, and for the total business result to be positive. All these measures and achieved results confirm the dedication and commitment of the current Board of Directors to the stabilization and improvement of the operations of "Plantaža". We brought the company that was on the verge of bankruptcy back to life and turned it into an operationally efficient organization that today has a plan and a vision of how to be sustainable in the long term.
Although your mandate and that of the other members of the board of directors last until April next year, the state Investment and Development Fund proposed the dismissal of the board of directors as an extraordinary item at the Shareholders' Assembly on Friday. Are you aware of the reasons, are they of a business nature or are they political reasons?
The results of the work of this convocation of the Board of Directors are best expressed by the achieved results. From the moment of taking office, we did everything to consolidate the company financially and get it back on the right track after several years of setbacks led by the former management. Without false modesty, we can say that we have achieved significant results. We worked dedicatedly and devotedly, all the time focused, exclusively, on achieving concrete results that will ensure complete recovery and further prosperity of "Plantaž". Everything was done transparently, with the intention of restoring the lost trust of creditors, our partners and the wider community in the national brand and then ensuring support, without which there is no stability and success of the company in the long term. Employees and owners will see the results of the commitment of this board of directors in the coming period, when after the financial consolidation that we had to deal with, after several decades, more intensive investment in the company will begin. We hope that the priority of the future convocation will be to work on the foundations that we have laid, and that it will continue to implement the strategic initiatives that we defined in the Development Strategy until 2030. Our vision and plans are clear and directed towards the long-term success and sustainable development of the company, as one of the most valuable state brands.
The Company's Development Strategy until 2030 is also on the agenda of this Shareholders' Assembly. What does it foresee and how is it planned to provide money for those projects?
The management of "Plantaža" has adopted the company's new business strategy until 2030. This crucially important document aims at a comprehensive transformation of the company, which will ensure its long-term sustainability. We consulted the best experts, including PWC (Pricewaterhouse Coopers) and BlueRock from Zagreb, leaders in the transformation of public companies. With this, we have shown our commitment to achieving high standards of quality and business.
We expect that the Government will adopt our business strategy, which will make "Plantaže" a modern company and a driving force for economic growth by 2030. We believe that by implementing the new business strategy, the company will achieve long-term and sustainable growth, maintaining a leadership position in the industry. What is an important aspect of the strategy is the development of olive growing and, above all, wine tourism. I can single out one megaproject that we will present to the Government, and it concerns the development of wine tourism at the location of Šipčanik, some kind of wine village, and that investment is estimated at between 150 and 200 million euros, and it is something that should definitely deserve the attention of owners and shareholders. . The plantations will be a generator of income from wine tourism, which will benefit the capital, the municipalities of Tuzi and Bar, as well as the entire country.
Some estimated value of investments in the recovery of the company is between 65 and 70 million euros, and that's not taking into account the Šipčanik project that I mentioned. We plan to accumulate these funds through the sale of property that will not be used as agricultural land. Renewal of vineyards, these are investments that have been missing for years, which is why the company got into these problems, vineyards should be renewed with varieties that are most in demand on the market. There are investments in agricultural machinery, a water purification system... When it comes to sales, the strategic goal is to have high-quality products that are sold at optimal prices.
Lower grape yields have been recorded in the last two years. What caused them?
"Plantations", like the entire viticulture sector in Montenegro, the region and Europe, felt the consequences of climate change, which irreversibly changed viticulture. Unfavorable weather conditions in the key stages of vine development had a significant impact on the grape yield in the past year, which was about 40% lower than planned. Unfortunately, this drop in yield is not an isolated case - similar percentages were recorded in the entire region, Croatia, Serbia, Macedonia, Slovenia, as well as in other European countries, among which Spain, Greece, Italy are leading... Only in 2022, hail damage in Ćemovsko polje was estimated at 8 million euros, which additionally affected lower yields, especially of white wine varieties. Experts in this field know that during the period during which there was a city, the potential for the next year's crop is formed, which means that the damage was done in two years. It should be borne in mind that we are talking about circumstances that cannot be influenced by the human factor. The combination of climate changes, unfavorable weather conditions, but also inadequate cultivation of vineyards and the absence of investments in the past fifteen years, resulted in lower yields in the last few years.
Therefore, the viticultural sector of Montenegro will have to find a way to adapt to these changes in the coming period. Only by adapting to the new circumstances will we be able to ensure sustainable production and high quality standards, and this will probably require a change in the assortment of grape varieties, as well as its clones.
In recent years, "Plantaže" has also become an importer of bulk wine. Was it necessary and why?
In order to preserve the company's position on the market, and thus provide the necessary income, preserve liquidity and competitiveness, in accordance with the practice in the wine world, by purchasing a certain amount, exclusively, of white wine, used, primarily, for coupage with raw materials from its own production, and that for the segment of the lowest price category, the missing quantities were compensated. This production segment of KV wine (the lowest price segment) was placed for export, based on the requests that came from those markets.
In this section, it is very important to mention the data that show that of the total annual world wine production, 33% of sales are made in the form of bulk. According to official data from the OIV (International Organization for Vine and Wine) for the year 2022, the most famous and largest wine destinations in the world are also the largest importers of wine, so Germany (723 million liters), USA ( 489 million litres), France (457 million litres), Portugal (207 million litres) and Italy (187 million litres), which, later, are marketed throughout the world through the finished product. Also, the countries of the region are equally recognized as importers of bulk wine . This, among other things, in addition to satisfying the economic calculation and sustainable operation of wineries, is also done with the aim of strengthening the wine brand of the mentioned countries. Percentage-wise, in relation to the total amount of wine produced, when realizing the planned production, in "Plantaže", we are talking about a percentage of up to 5%.
Does this mean that "Plantaža" lacks white grapes?
When considering this question, it should be borne in mind that in the last few years there has been a change in the tendency of consumers towards an increasing consumption of white wines, both at the world level and at the regional level, to which we belong. One of the world's most famous wine regions, Bordeaux in France, in the last couple of years, more than 1.500 hectares of plantations under black wine grape varieties have been cleared. As we know, over 70% of Ćemovsko polje is planted with black grape varieties, which are much better suited to our climate. This implies the need for more and more planting of white varieties in the coming period, but before making such a decision and securing sufficient financial resources, one should keep in mind the repeatedly mentioned climate changes as well as the fact that wine trends are changeable. When planting new vineyard plantings, it is calculated on the profitability of their exploitation of about 35 years in the conditions of Ćemovsko polje. In this sense, it is desirable to monitor trends, assess their duration, and then make a decision about planting larger areas of white varieties, which is one of the tasks of the company in the coming period.
They make a joint wine with a winery from Tuscany
Will there be any new "Plantaža" products soon?
It is with great pleasure that we announce a new project in cooperation with the winery "La Vecchia Cantina di Montepulciano" from Tuscany. This project envisages the creation of a new product that will combine the most famous autochthonous varieties of our regions, the "vranac" and "San Giovese" varieties, which will connect two large wine regions - Montenegro and Tuscany.
The goal of the project is multiple. First, we want to promote "Plantations" and Montenegrin viticulture in markets where Italian wines are already well positioned, such as Italy, Western Europe, USA and Canada. By combining the "vranac" variety, which is authentic for Montenegro, with the well-known "Sangiovese" variety, we create a unique wine that will attract the attention of international wine lovers.
This cooperation will also enable linking the brand "Plantaže" and Montenegro to the brand Tuscany, which is extremely recognizable and respected in the world of wine. We expect that the success story of this joint wine will pave the way for "Plantaža" to sell other wines in new markets.
The project will have a significant positive impact on the tourism promotion of Montenegro on foreign markets. The wine that will be the product of two countries and two "terroirs" will represent not only a top product but also an ambassador of our culture and tradition. The promotion of the "vranac" variety on international markets will further raise the profile of Montenegrin viticulture and winemaking. We are currently in the initial phase of the project, where we are working out all the details, including logistics, production processes, financial aspects and marketing strategies. We plan to have this wine on the market by the end of the year. This wine will be a symbol of our innovation and ability to connect with the best in the world of the wine industry.
Our vision is to strengthen the "Plantaža" brand on a global level with this project. We believe that our cooperation with "La Vecchia Cantina di Montepulciano" will be recognized as a significant step in our business, bringing many benefits not only to our company but also to the Montenegrin wine industry as a whole and better positioning of Montenegro as a tourist destination.
Đeljošaj instigated the illegal calculation of taxes in order to destroy the "Plantations"
A group of deputies proposed changes to the Law on Real Estate Tax, which, instead of stipulating that the tax rate on agricultural land must be reduced, states that it can be reduced. How do you see this proposal and how much could it make the position of "Plantaž" as the largest Montenegrin owner of agricultural land difficult?
The amendment of the law should enable the continuation of the looting of one of the most valuable resources that this country has, namely "Plantations". The current law was passed on the initiative of the current management of "Plantaža", where care was taken not to be discriminatory like the previous solution and it is not only in the interest of the company but of all agricultural producers in the country. This law significantly affirms and encourages agriculture as a strategic economic branch.
I will remind you that the draft law was then agreed with the current Minister of Agriculture, and that the explanations for the changes and adoption of this law were accepted and included in the plan of legal changes by the Ministry of Finance, which was headed by the current Prime Minister. Precisely because of this, it will be very interesting to see whether the Government and the ruling majority in the parliament will stand behind this proposal.
On the other hand, it is clear why everything was dark until 2022 for the current Deputy Prime Minister and the President of the Albanian Alternative, Nik Đeljošaj. Since the establishment of the autonomy of the municipality of Tuzi, Mr. Đelljošaj, from the position of the President of the Municipality, has encouraged the illegal calculation of taxes, thereby causing direct damage to the state-owned company.
And this is not me saying this, but the Administrative Court, which, based on the lawsuits of "Plantaž", annulled all the decisions of the Municipality of Tuzi on the calculation of real estate taxes from 2019 until today. The damage due to the calculation and forcibly collected tax amounts to 2,5 million euros. At some point, "Plantaže" will return this amount through the courts, so Đeljošaj is trying to cover up his illegal activities in relation to "Plantaže" by changing the law, while he was the president of the Municipality of Tuzi. It is obvious that Đeljošaj wants to return "Plantaže" to the time when they were managed by Veselin Vukotić and Verica Maraš, who kept silent about this theft and with other bad decisions brought the strongest Montenegrin brand into a state of de facto bankruptcy.
I have to remind him that the company he wants to destroy employs a large number of his compatriots, our Albanian neighbors, who honorably and honestly perform their work duties and earn their living. It is obvious that Mr. Đeljošaj does not care about them and the fact that with such legal solutions he is trying to question the survival of the company, and therefore the existence of all employees.
Finally, I would like to remind Mr. Đeljošaj that it is my obligation and duty as a representative of state capital to protect the interests of "Plantaž", and therefore the property of all citizens of this country. I did that job honorably and professionally from day one. The entire public is aware of the fact that the current administration prevented the financial collapse of the company and the scenario according to which the company would have become easy and cheap prey for various tycoons. Today, the state knows how much property it has at its disposal, and everything we have published has been confirmed by all audits and controls. This is what I am personally proud of, and which obviously bothers Mr. Đeljošaj and others like him. With the proposed changes to the law and this statement, he made it clear what his goal was. On the way to that goal, all obstacles need to be removed, so it is clear who is actually behind the announced replacement of the current Board of Directors of "Plantaž".
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