According to Artur Kloczko, CEO of Opoczno, quoted by the daily Parkiet, two thirds of Opoczno’s production capacity is in terrible condition and their modernization would costs horrendous amount of money. The company is considering the modernization however in such a way as to not fall out of the market. Additionally, according to the CEO, after last year’s very poor financial results Opoczno’s ability to take on debt is very weak which leaves a question mark regarding financing of the modernisation. The CEO stated that the company is also considering leveraging well recognized brand of Opoczno and entering new, non-tiles business, not disclosing any new details.
Our view: In our opinion, the information about diversification sheds different light on Opoczno and could have a positive trading impact. Upon acquisition of Opoczno, (38 PLN, -3,34%) was stating that there will no investments under Opoczno brand, which now turns out not to be true.