Lorand Szarvadi, CEO and shareholder of Domo Retail, the second largest player on the home appliances market, forecasts turnover worth 270 million euros this year, up 39.8% compared with the 193 million euros posted last year.
The top three retailers on the market, Altex, Domo and Flamingo, saw overall sales worth 681 million euros, i.e. around 62% from an overall market worth 1.1 billion euros. Last year, Altex and Flamingo posted businesses worth 317 million euros and 171 million euros, respectively.
After being taken over by Equest Investment Balkans, Domo became the second largest electronics and home appliances retailer in Romania in 2007, and outranked its rival Flamingo, which registered turnover worth 171m euros.
"For 2008, we have budgeted a 270 million-euro turnover. The increase is 39%, lower than the level in 2007 (58%), and is a feasible target. However, if instability continues (the depreciation of the local currency and the fall of international stock exchanges) growth could be less significant," said Szarvadi.
The company's turnover does not include the results of Domo stores in Bulgaria, which are reported together with those of Technomarket, a company held by joint shareholder Equest Investment Balkans. Domo's financial results also include the sales posted by the first Technomarket store in Romania, which opened in Targoviste last autumn.
"The Technomarket store contributed just 500,000 euros to the final results. However, the Domo stores in Bulgaria saw sales worth almost 10 million euros last year," added Szarvadi.
The retailer's operating income reached 12.6 million euros in 2007, with a net profit of 8.5 million euros, down 16.4% against 2006.
The 2006 profit, however, included the sale of lending company Estima Finance, which amounted to 5 million euros.
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