Alba-Iulia-based Albalact, owner of the Fulga brand and one of the main players on the dairy market, saw turnover worth 16.5 million euros last year, about 50% higher than in 2004, in line with the company''s preliminary figures presented to shareholders during a general meeting.
The company last year derived net income worth 0.825 million euros, up 25% on the previous year, in line with the company''s preliminary results.
"The improved figures were due to the higher production volume and rising market share," Raul Ciurtin, Albalact chairman and majority stakeholder, told ZIARUL FINANCIAR.
Having started from a modest position, the company morphed into one of the main producers on this market, which is clearly dominated by multinationals.
The boost was triggered by the Fulga brand launch, which brought sales growth rates of at least 50% in two years, and turnover worth 6.4 million euros in 2003.
Following the Fulga success story, Albalact management plans to launch a new product range next year, under the Zuzu brand, on the segment of fresh products, namely fruit yoghurts and ultra-pasteurised milk. The company earmarked 1 million euros for the promotion of Fulga and Zuzu brands in 2006, double the budget granted to Fulga in 2005.
"Once we launch the new range, we hope to at least maintain our profit and turnover growth rates this year," said Ciurtin.
The company official also said that profit generated in 2005 would be treated as reserves, for a share capital increase, should this move be approved by the general meeting of shareholders.
According to Ciurtin, after the capital raise is completed, the possibility of floating the company on the Stock Exchange will also be approached. Albalact is currently listed on the RASDAQ market.
Albalact shareholders have recently approved an over four million RON capital increase, through an issue of new shares at a price of 0.1 RON/share, equal to the face value. All the company''s shareholders registered by March 9th can participate in the operation.
Funds to be raised in this process will be mainly used to finance the opening of a new milk plant, which will absorb up to seven million euros, according to the company''s management. catalin.ciocan@zf.ro
Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels
