Wimm-Bill-Dann, a major Russia foodstuff producer, announced changes in its corporate structure and appointments to top positions at the company, due to take effect as of March 1, 2008.
As part of the ongoing transformation, the dairy products and Baby Food divisions are to be merged with the head company to create a single company under the name Will-Bill-Dann Foods. The administrative and supportive functions of the Beverages segment will be either centralized or delegated to Wimm-Bill-Dann Foods. Changes in the corporate structure will involve new appointments. The positions of vice president for production and vice-president for sales are to go to the managers who previously headed the Dairy subdivision and the Department for Marketing and Innovations.
In our opinion, this development is to be moderately upbeat for the company’s stock valuations. We believe that WBD’s FY 2007 financials which are due out on March 28, 2008 are to become the strongest upside factor for the company’s market valuations.
We are in the process of upgrading our target price of WBD shares and believe that the stock holds significant upside potential in the mid term.
0.553
1.6
