Business Company Strategy of

Wimm-Bill-Dann
The objectives of a business are to achieve growth, become profitable and to satisfy the
customer's needs. Many businesses have not optimally achieved this but Wimm-Bill-Dann has utilized
their strategies in achieving a significant growth and this has been through mergers and acquisitions.

Company overview
Wimm-Bill -Dann is a Russian company that deals with dairy products, nectars, fruit juices and
baby food. It is a market leader across the Russian territory with its bestsellers, J-7 juice and agusha baby
food. Its market extends from Russia, former soviet republics and 10 other countries all with more than
280 million consumers. Wimm-Bill-Dann has 37 plants in Russia, Ukraine, Georgia and central Asia. The
company mission is ensuring that families live a healthy life by enjoying the company's nutritious products
each day throughout their entire lifespan.
The company has several committees whose aim is to ensure that the company's objectives are
achieved. These committees include audit committee, investment and strategic planning committee and
personnel and compensation committee.
The audit committees goals and objectives are to assist the board of directors in carrying their
responsibility in matters concerning preparation of financial statements, ensuring that there is an
effective internal control, ensuring liaising and working with internal auditors and keeping with the
requirements of legislative and normative acts. The audit committee may meet once per quarter fiscal
year.
The investment and strategic planning committee assists the directors in approving and carrying
out its responsibility concerning mergers and acquisitions, strategic planning and investment programs.
The committee meets not less than once in each quarter of a fiscal year.
The personnel and compensation committee assist in the selection of the board of directors and
help in the formulation and implementing of uniform personnel policy in all of its branches, personnel
appraisal, training policy, dismissal of employees, remuneration and compensation policy and corporate
ethics.
The company is committed to the principles of transparency and corporate governance that is
excellent. The corporate governance strength include high level of shareholder arrangement
transparency, commitment to the practice of good corporate governance and the statement of the
corporate governance code, being open to the investors where high level of financial and operational
transparency is maintained and the presence of an effective and efficient oversight mechanism for the
internal and external audit process.
 Financial strategies
The company has solid financial strategies which ensure that it maintains financial stability and
growth as depicted by its results.
One of the company strategies in raising finances to fund its ambitious objective of acquisitions
is the placing of bonds. The recent placing of bonds by the company was on 15th march 2008 with Moscow
inter-bank currency exchange and this attracted a large number of investors. This attraction of many
investors shows the great trust investors have with the company.
The company financial results show that it has been on the growth phase. The results are
analysed quarterly from 3 months of 2007 to 3 months of 2008.This is shown in the table below.
3 Months of 6months of 2007 9 months of Financial year 3 months of
2007 2007 2007 2008
Gross sales rose 40.1% year- rose 40.5% year- rose 40.4% year- 38.4% growth to rose 34.8%
on-year to on-year to on-year to US$2,438.3 year-on-year to
US$542.8 million US$1,142.8 US$1,758.3 million US$731.9
million million million
Gross profit increased 53.3% increased 48.8% increased 43.4% increased 26.2% increased
with gross to US$377.8 to US$578.4 to US$219.5 26.2% to
margins million million million US$219.5
increasing to million
32.0% from 29.3%
Operating income increased rose 44.3% to rose 30.2% to rose 24.5% to increased
income 73.1% to US$51.4 US$108.4 million US$168.3 million US$214.0 million 23.2% to
million US$63.4 million
Net income increased 84.8% increased 40.8% rose 30.2% to increased 29.0%
to US$32.1 million to US$65.8 million US$168.3 million to US$140.0
million
EBTDA increased 58.8% increased 40.3% increased 30.9% increased 29.0% increased
to US$70.4 to US$147.2 to US$229.4 to US$90.7 29.0% to
million, EBITDA million million million US$90.7 million
margin1increased
to 13.0% from
11.4%
Earning per grew to US$2.40 grew to US$3.18 increased
Share from US$1.50 from US$2.17 30.6% to
US$41.9 million
The company profit has been growing at a high rate and this shows that there is an increase in
sales of the products of the company and hence the business has managed to achieve one of the
objectives of becoming profitable. We also see that earning per share is on the increase and this proves
that the capital base of the company is on an increasing trend and so the investors are reaping from their
investment.
Prepared by: Desislava Zhivkova Ivanova
Subject: Accounting and Audit
Faculty Number: 112398
SIN: 7433
Group: 2