Caroli Foods, one of the main domestic producers of charcuterie products, has generated a turnover worth 22.5m-euros in the first quarter of this year, up 25% on last year, says Talal El Solh, Caroli chairman.
"In the first quarter of 2007, we recorded a growth rate above 25%, both because of the market growth, which accounted for 10 of the 25 percentage points, and of the results registered by all the brands in our portfolio, particularly the Caroli and Gourmet brands that are currently being advertised on TV," stated Talal El Solh. This year Caroli invested net figures of 3m euros in the promotion of the entire range of Caroli Foods brands (Gourmet, Caroli, Maestro, Primo, Familia and Sissi).
According to the information provided by Alfa Cont, promotional investments operated by meat industry firms doubled last year to 60m euros (rate-card), from 31m euros in 2005. The main market players believe the overall trend for rising marketing budgets will continue this year due to increased competition.
Despite the significant turnover increase Caroli generated in the first quarter, profit maintained at the same level as in the first quarter of 2006, amid ongoing investments started this year. Company representatives refused to specify the value of Caroli's net income for the first three months of this year.
The company announced it would invest around 5m euros this year in building two new logistic centres in Pitesti and Cluj. The investments also target transport vehicles and the development of the Maestro store network.
After having taken over Cluj-based Maestro Industries producer, in a 5m-euro deal, Caroli relocated the entire Cluj production to its plant in Pitesti. It closed the Maestro plant in February, and intends to turn it into a logistic centre later this year. "We transferred activities to a new warehouse, but not inside the Maestro plant. At present, there are no ongoing activities at the plant, but we are still undecided on what will happen to this location in the future," said the Caroli chairman.
In the takeover, Caroli also acquired Maestro's store chain. The producer currently owns 5 stores, all in the Cluj area, but is also considering expanding its network in Pitesti.
In 2006, Caroli Foods derived a turnover worth 92.1m-euros, up 47% year-on-year, and net income worth 1.6m euros, lower than the 2.1m euros registered in 2005, according to company information. Last year, Maestro accounted for around 15% of Caroli's turnover. This year the company expects to derive a turnover worth 125m euros, up 25-30% on 2006.
Last December, Caroli finalised investments worth 2m euros in the expansion of its Pitesti charcuterie plant, TC Affaires, while another 4m euros were used for the construction of a new dry cured salami plant close to the first production facility, Indcarf. The company currently produces at a capacity of 2,500-3,000 tonnes of boiled salami and 150 tonnes of dry-cured salami per month.
Caroli Foods
Consists of Maestro, Caroli Prod 2000 (centred on distribution), TC Affaires, (focused on production) and Indcarf (focused on raw charcuterie production and warehousing)
In 2006 derived a turnover worth 92.1m euros, up 47% year-on-year and a net income worth 1.6m euros, lower than the 2.1m euros reached in 2005
This year the company expects to derive a turnover of 125m euros, up 25-30% on 2006
Registered a 22.5m-euro turnover in Q1 2007, up 25% on 2006
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