MBF Group and ChantiiOil join forces in cooking oil business

The signed consortium agreement stipulates that MBF Group SA will be the exclusive supplier of rapeseed and sunflower oil to ChantiiOil, which in turn will package and distribute the product in the Polish and foreign markets. According to MBF Group’s management, the conclusion of the consortium is a step towards the company’s development in the cooking oil industry. The company gains access to ChantiiOil’s ready-made production infrastructure and experienced team, which will allow it to scale up its operations. The common goal is to maximize profits using the experience of each partner.

The market for cooking oils in Poland and Europe

The market for cooking oils in Poland and Europe is large and growing rapidly. About 2.5 million tons of cooking oils are consumed annually in Poland, of which about 70% is rapeseed oil. In recent years, there has been an increase in demand for vegetable oils, including rapeseed oil. This is due to, among other things. the growing popularity of a healthy diet, as well as rising meat and dairy prices. There is also an emerging interest in healthy alternatives to traditional oils, which is fostering the growing popularity of vegetable oils such as canola and sunflower oil.

Opportunities and growth prospects for MBF Group SA

MBF Group SA’s cooperation with ChantiiOil Sp. Ltd. provides the Company with an opportunity for dynamic growth in the cooking oil segment. MBF Group SA will have the opportunity to increase revenues from the sale of rapeseed and sunflower oil. In addition, the Company will be able to leverage the know-how and infrastructure of ChantiiOil Sp. Ltd. to develop the business of packaging and distribution of cooking oils. If the cooperation is successful, MBF Group SA can improve its financial situation. The company can expect growth in revenue, operating profit and net income.

The Consortium’s partners estimate the demand for raw material for its packaging and subsequent distribution and sale at between approx. 200,000 liters / month in the first months of operation, up to approx. 500,000 liters / month at the end of the year. At the same time, the Issuer’s Board of Directors notifies that due to the need to perform full certification of the production line, the raw material deliveries performed by the Company should start at the end of January 2024.

In addition, the placement of the MBF Group logo can be a form of advertising for the company. Each bottle of oil is a potential advertising medium that can reach a wide audience. The logo of the listed company can be seen in the stores, homes and kitchens of consumers. Placing a trademark can help improve brand image and increase recognition and trust among consumers, investors and shareholders.

Summary

The concluded agreement is beneficial to both parties to the consortium. MBF Group SA gains a new customer and growth opportunity in the cooking oil segment. ChantiiOil Sp. Ltd. gains a stable supplier of raw materials and the opportunity to increase sales. Currently, the market for cooking oils in Poland and Europe is in a growth phase. MBF Group SA’s cooperation with ChantiiOil Sp. Ltd. gives both companies a chance to capitalize on this trend and grow rapidly.