Delivery service company Fan Courier, a major player on the market, generated turnover worth 26m euros (94.7m RON) in the first eight months of this year, up around 40% in RON against the same period last year.
"Though we'd expected the growth rate to slow down this year, we've had a good trend," said Adrian Mihai, one of the company's three owners. Fan Courier estimated turnover would rise by 30% this year, to some 38m euros (135m RON).
While turnover continues to grow, alongside development in the western area of the country, income will be hurt this year by the company's soaring costs.
"Profit will suffer if the exchange rate remains unchanged. Costs related to RON decline are doubled by rising fuel prices, as well as higher wages. I believe costs have climbed by over 10% this year," Mihai also said.
Last year, Fan Courier maintained its profit margin at 23%, flat from 2006. The company's margin was among the highest on the market. This year, however, the high exchange rate could erode the company's profit margin.
The international crisis will not harm the company as much. "Most of our investments are self-funded, so we have no problem with loans. Instead, our fleet is largely acquired in leasing. Even in case we have to take out some loans, we'll not stop our company's development," Mihai said.
The company last year started building new headquarters, with investments put at 85m euros, excluding the land costs. At the same time, Fan Courier has continued its IT investments, implementing a new software that allows clients to track their parcels Mihai specified that the company opened two new collection centres in Bucharest in a bid to send parcels in due time. "(...) The areas are rented. We may operate our own investments in such a centre in the future," said Mihai. The company's representatives consider it is difficult to foresee the market trend in 2009 under the current circumstances. Mihai specified the company will consider stock market floatation in the future, but no decision will be made in this regard in the current market conditions.
Fan Courier is among the few companies that have not undergone shareholder structure changes this year, but the company says it will further rely on independent growth. Fan Courier operates around 90% of its shipments in Romania.
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