The STEGA association announced today that the state-owned company "Plantaže" is misleading the public.
They reacted to yesterday's statement by "Plantaž", which, among other things, states that STEGA is making incorrect claims, and that the data speaks for itself.
The STEGA association said that they have been warning about the extremely poor business performance of "Plantaž" for a long time and that they have added the incompetent work of the company's management.
"For several years now, we have been hearing the 'Plantaž' management boasting about 'exceptional results', which is really difficult for anyone in the profession to understand. Information from CEO Čađenović is being released to the general public, which conceals the facts and the real situation, and immediately after that, a statement from 'Plantaž' about the allegedly inaccurate data presented by Stega. At the same time, there is no concrete denial of any of the data we presented. In this way, a false picture of this company's business is being consciously created," said STEGA.
DON'T MISS IT
United STEG added that after a "successful" 2022 and 2023, in the opinion of the "Plantaž" management, 2024 also ended with "phenomenal and historic results."
"So we would like to take this opportunity to ask some questions and present the facts. You presented it as a great success that in 2023 you achieved negative business of around six million euros, and that this is a significantly smaller loss than the 12 million euros achieved in 2022. We ask whether any company in the world presents such results as a historical success? You boast that 'Plantaže' achieved positive business of around 2024 thousand euros in 300, so we are interested in whether the Board of Directors, as the highest management body of the company, approved the plans for you to operate with millions of losses, or with a minimal positive result achieved by selling the 'Plantaže' land, and whether they are also celebrating such results?", reads the STEGA statement.
The association is asking whether it is a good business result that "Plantaže" owes the state 15,4 million euros in taxes and contributions to settle short-term liabilities that cannot be covered through regular operations.
"It was announced that you inherited tax debts from the old administration. It would be correct and accurate if at the end of 2019 all tax debts to the state were settled, and that then came the corona and the inability to pay the obligations in 2020, which at the end of that year amounted to around 4,7 million euros. It should have also been stated that the obligations to the state in the period from 2021-2024 increased by around 11 million euros," said STEGA.
That association also mentions production.
"Vineyards are the essence of 'Plantaž' and the result cannot be good while the condition of the vineyards is poor. You only point out that the 2024 harvest is better than 2023, bypassing the fact that 2023 was the worst harvest in the history of 'Plantaž' when only 8 million kilograms of grapes were harvested, which is nine million kilograms less than the previous average, and in 2024 six million kilograms less than the previous average. During your management, hundreds of hectares of vineyards were cleared, prepared for clearing and neglected, thanks primarily to the loss of qualified labor. Poor harvests also led to the lowest wine production in the history of 'Plantaž', so in 2024 and 2023, 2019 million liters and four million liters less were produced compared to 2,5," the STEGA statement reads.
They also mention sales.
"You boasted about the historic sales of bottled products, and it is true that sales did not reach 2019 in terms of volume. According to our information, sales in 2023 were lower by about 700 thousand liters, and in 2022 they amounted to about 1,6 million liters. Finally, sales are also lower in terms of volume. As for financial amounts, we know that due to economic trends, the average value of almost every commodity increased from 2019 to 2024 by about 50%, so 'Plantaža' products increased their product prices by an average of about 30%. Wouldn't it be logical that financial sales should have grown more, so that from the sales revenue from 2019 of 25 million euros, with a price increase of about 30%, there should have been at least about 32 million euros, and not about 27 million euros, which was achieved this year," said STEGA.
The association says that "Plantaže" emphasized that their sales are focused on profitability and higher selling prices, not on quantity realization.
"But we can inform you that from 2021 to mid-2024, 'Plantaž' products were cheaper than the wines of many producers who were cheaper than 'Plantaž' in previous years. There are also discounts - promotions on 'Plantaž' wines of a full 50% in many markets, so we are really surprised how you took into account higher selling prices and profitability. It was certainly easier to sell wines at any price when you had over 19 million liters, or 42 million euros, left in stock from 2020," said STEGA.
They also state that when "Plantaže" comments on "historic" sales in Montenegro, they should know that the value of wine imports to Montenegro in 2024 increased by around 2019 million euros compared to 7,5, while, as STEGA adds, "Plantaže" had a minimal increase in sales in Montenegro in 2024 compared to 2019, which, according to STEGA, is cause for concern.
"Export markets have been drastically lost in recent years, such as China, which is recording a large decline in sales, as well as the overall exports that 'Plantaže' achieves outside of the countries of the region," STEGA states.
That association also mentions financial results:
"You emphasize that in 2024, the company's revenue was a historic success, with 35 million euros in revenue, or about 1,5 million euros higher than in 2019, but you do not state that this revenue included the sale of land worth several million, so it would be correct to at least state that the sale of land provided you with a positive annual financial result. You also do not mention that in 2023 and 2024, a historic result was achieved, but in the increase in operating costs, which are otherwise higher by about 2019 million euros compared to 5,5. It is emphasized that the company's financial debt was reduced in 2024, to banks by 3,6 million euros, and the total debt was reduced by one million euros. Why don't you say in the analysis of the company's debts that you increased debts to some other party by 2,6 million euros, probably to suppliers or the state," the statement reads.
STEGA said that "Plantaže" stated that over the last four years they have reduced their debt to banks from 23,4 million euros to 16,5 million euros.
"And you do not state that during that period you increased your debt to the state by around 11 million. You state that the entire debt to commercial banks was inherited, although you should know how that loan money was spent. Significant investments were made at that time: a new cold storage facility, a new bottling line, the establishment of vineyards, etc. During your administration, several million euros of land were sold without any serious investments being made. Since you boasted of great success, an increase in investments in 2024 of 1,5 million euros, it should be noted that the investments, taken together, during your three-year administration amounted to around 5,3 million euros, while investments in the period 2017-2019 amounted to around 12,3 million euros. The claim that you financed the investments from your own funds, and considering that you owe the state 15,4 million euros and that you earned 5,4 million euros from the sale of land, suggests that it can still be concluded that you are financing yourself from 'foreign sources'," they say. STEGA.
The association says that it is unacceptable to cite it as a solution for paying obligations to the state through the valorization of land that has not been used for decades, because, as they added, even previous management structures for nearly 60 years did not sell land for tens of millions of euros to pay taxes and contributions to the state.
"Is it true that you offered for sale over 34 square meters in 2022 public tenders from 2024 to 250.000 with a starting price of around 17,5 million euros. For the period 2023/2024, around 13 million euros of land were offered for sale. Is it true that you sold the 'Plantaža' land for millions in 2024, which contributed to a significant increase in revenue in 2024. Do you think that you should boast about historical revenues from the sale of 'Plantaža' land? Is it true that you had a request to the Minister of Agriculture to transfer 30 hectares of 'Plantaža' land from agricultural to construction land, thus enabling the sale of land for tens of millions of euros. Your statement 'we are not selling national treasures and we want to preserve them as a legacy for future generations' is something that the general public will judge. For us, it is the worst kind of manipulation. Yes "Let's conclude, nothing personal, Mr. Executive Director. But, 'Plantaže' needs management and a Board of Directors who are wine experts and top professionals. There is not a single expert from the wine world on the Board of Directors, and neither are you. The selection of top professionals is the first and most important step at the beginning of the recovery of 'Plantaže'. That is why Stega will continue to fight for better Plantaže," STEGA said.
Bonus video:
