As of January 1 of this year, Lek Kozmetika began independent operations

The Independent Lek Kozmetika has Ambitious Plans

23. 1. 2002

Starting January 1, 2002, Lek Kozmetika began operations as a completely independent daughter company of the pharmaceutical firm Lek. The Cosmetics Unit used to be an integrated part of Lek until the end of 2001. With the new year, Lek Kozmetika began independent operations on the basis of the three-year business plan prepared by its director, Cvetana Rijavec.

The preparations to make the cosmetic program an independent company started in 2000, following management’s decision to concentrate on developing Lek’s two core activities: pharmaceutical products and active pharmaceutical ingredients. The key goal of this change was to increase the sales orientation of the program major focusing on program challenges, product redesigning, more responsible managing of sources and greater responsibility for results. Lek d.d, as the sole founder of the company, will assist its new subsidiary to secure its stable launch. Lek Kozmetika for now continues its operations from Verovskova 57.

The company envisions itself becoming the leading Slovenian supplier of cosmetics; facial and body care products for women, men, and the whole family for the markets of Central and Southeastern Europe. The company’s mission is to produce and market high quality cosmetic products, using tested and healthy ingredients. The main brand names are Green Line, Amai, Biodent, Vitergin, 48 Medical Cream for hands – and others as well. Its key markets, along with Slovenia, are: Croatia, Bosnia and Herzegovina, Federal Republic of Yugoslavia, the Russian Federation, the Czech Republic, Slovakia, the Ukraine and Macedonia.

Among the company’s principal strategic goals are: sales growth that exceeds projected growth of the cosmetics market, holding down expenses, limiting employee growth, reinvesting on average 10 percent of profits.

The company plans to meet these objectives by adopting new marketing approaches, more aggressive advertising and by staff restructuring. The company’s relationship with its suppliers is a partnership. The company is seeking new strategic alliances in marketing; it is also looking to utilize its idle manufacturing capacities.

“I am convinced that Lek’s management’s decision was correct. We have found the proper place for Lek Kozmetika,” stated Cvetana Rijavec, the Director of Lek Kozmetika. “Based on the strategy we have adopted, the future business path of the independent Lek Kozmetika will be successful.”

This press release contains statements and conclusions based on projections of Lek’s future business operations. These estimates are derived from the best information currently available. In case these forecasts prove unreliable, the actual results could prove different from those projected.

  • * *

For additional information, please contact Katarina Klemenc, Director of Corporate Communication, Lek d.d. Telephone: + 386 1 580 22 43