Panrico, which makes Spain's quintessential "Donuts" and a host of other bakery goods, is mulling a seond IPO bid in the medium term, workers' committee representatives in Madrid told just-food.

The Barcelona-based company, which private equity investor Apax Europe recently snatched for about €900m (US$1.06bn), also hopes to boost revenues beyond €1bn booked in 2004 and increase gross operating earnings (EBITDA) by 15% annually.

"There are plans to launch an IPO and increase profitability," workers' committee member Julio Sanchez said. Panrico canceled a first IPO try in 2001 amid the depressed global financial market.

In 2004, Panrico saw net profit more than double to €30m and posted an EBITDA of €72m. Revenues were a hair over €680m, a company spokesman said. He would
not comment about Panrico's IPO and strategy.

Sanchez, who represents big Spanish union CCOO, said Panrico will face a bitter fight to achieve the profit targets.

The union plans heavy demonstrations to protest management's intention to change 180 fixed distribution jobs into auxiliary contracts, a move that would generate "enormous savings." This is because Panrico intends to slash sales commissions to freelance distributors by as much as 50%. If the 180 workers, most of them employed in Madrid, are changed, the company will see its distribution-over-sales costs fall to 6% from 12% annually.