News Parkiet

Pharmaceuticals

Orfe builds up drug store chain

Poland?s fourth-largest drug wholesaler, publicly traded Orfe S.A. spent an estimated 1.5 million euro to strengthen its retail network last year. Its parent company, Dutch OPG group said Orfe would continue to expand its drug store business despite assurances it won?t compete with independent drug stores.

Pensions

Government to cut farmers? pension

subsidies

Polish government wants to reduce direct subsidies to state-owned KRUS farmers? pension fund by as much as 1.5 billion zloty ($385 million). The shortfall would be compensated with funds now used for direct agricultural subsidies, Ministry of the Economy said in a report on Jerzy Hausner?s public reform plans. The government also wants to increase KRUS premiums.

Banking

Bank Zachodni WBK posts

fourth-quarter loss

Allied Irish subsidiary Bank Zachodni WBK posted net loss of 18 million zloty ($4.7 million) in the fourth-quarter of last year as a result of branch closures and other charges. BZ WBK shut down 27 branches and relocated three others last year. The bank also had to pay an extra 56 million zloty in taxes to comply with new tax regulations. Analysts expect BZ WBK will be able to recover that amount in the future. The bank said for this year it expects double-digit ROE, up from approximately 6 percent in 2003.

Restaurants

AmRest plans Warsaw IPO this year

American Restaurants plans to raise as much as 40 million US dollars in an Initial Public Offering later this year, a senior executive at the company said yesterday. AmRest owns and franchises about 140 Pizza Hut and Kentucky Friend Chicken fast food outlets in Poland and in the neighboring Czech Republic.