TOTAL
ORDER
Annual Report
2014
MARKETING AND SALES

Intense federal distribution development and maximum service for our customers are the main directions for our development.

“Trading company” KOMOS GROUP — is the largest distribution company in the Udmurt Republic. Its turnover in 2014 is over 7.5 billion rubles VAT inclusive. It supplies more than 2 500 clients, loads over 160 tons of goods and 1.3 million eggs every day.

Permsky khladokombinat “Sozvezdie” — is a distributor of frozen and chilled production of the Holding Company and other manufacturers of Perm and Perm region. In 2014 we developed client base that helped us increase it up to 4 354 distribution points (+ 45% by the end of 2013). In 2014 turnover increment totaled 45%, more than 2.1 billion rubles VAT inclusive. For continuous distribution development within the territory of the Perm Region and neighboring regions we are going to separate the “Sales” from Permsky khladokombinat “Sozvezdie” and create separate division Trading company “Sozvezdie”.

“MILKOM” JSC — is producer and distributor of dairy products of the Holding Company. In 2014 we managed to increase sales share in retail chains up to 50.33% (+21.16% by 201). Today over 38% of total sales are products of own brands for federal an regional retailers, such as “X5 Retail Group”, “Diksi”, “METRO Cash and Carry”, “Lenta”, “Globus” and other. We have more than 2000 clients in 59 regions of the Russian Federation and near abroad. In 2014 “MILKOM” was awarded with the diploma of “Diksi” for the largest amount of positive reports about the products.

In 2014 we continued wholesale optimization by means of warehouse and turnover management system implementation. This step helped us to automate customer relationship and reduce costs. We launched new service for our clients – “products quality hotline”. All the information and claims from the hotline immediately goes straight to a quality control department of our enterprises for further solution. We also widened opportunities of the web store (tk.komos.ru), started for resellers in 2013. We permitted credit card online payment. During 1.5 years of the web store operating, the number of orders increased from 135 to 500 per month. Monthly turnover grew from 2.8 million rubles to 4.2 million rubles VAT inclusive. Web store of the KOMOS GROUP was recognized one of the best in runet at the “Gold website-2014”contest. In 2015 we intend to start additional service for our clients – web portal for specific purpose. The portal will help to get acquainted with the Holding Company’s product assortment; it will become marketing tool for sales increase and the site for online studying and consultation.

At the same time we developed own retail system “Vkusny dom”. At year end 2014 we managed to increase the number of our shops to 78. In 2014 we opened 2 shops of “premium” segment. In 2015 we are going to increase the number of our shops to 100 and to become one of the largest retailers in the Udmurt Republic.

KOMOS GROUP’S GEOGRAPHIC REACH IN 2014, TONNES

70 442 / 13% Moscow and Moscow Region
260 007 / 47%
The Udmurt
Republic
52 783 / 9% Perm Region
23 750 / 4% Samara Region
21 539 / 4% Saint-Petersburg and Leningrad Region
20 723 / 4% Sverdlovsk Region
16 751 / 3% The Tatarstan Republic
15 444 / 3% The Bashkortostan Republic
14 064 / 2% Chelyabinsk region
8 605 / 2% Ulyanovsk Region
7 560 / 1% Kirov Region
42 212 / 8% Other

In 2014 we proceeded federal market development:

  • Moscow and Moscow Region. (we increased products turnover by 17% in comparison with 2013);
  • Sverdlovsk Region (+68% to 2013);
  • The Tatarstan Republic (+49% to 2013);
  • The Bashkortostan Republic (+92% to 2013).

The most dynamically developed segment is regional supply of UHT-milk, whole-milk products and cheeses and eggs as well.

At the year-end 2014 we get the 5th place with 890.35 million eggs among the largest eggs producers (According to “Rospticesoyuz” agricultural companies in Russia produce 32.57 million eggs) and the 6th place in UHT-milk products producing (according to Tetra Pak).

Products of the Holding Company are supplied to the leading retailers in Russia: “PEREKRESTOK”, “Lenta”, “Pyaterochka”, “Magnit”, “Auchan”, “Karusel”, “Sedmoy kontinent”, “Diksi”, “Kopeyka”, “BILLA”, “SPAR”.