Lemarco, one of the top three producers of sugar in Romania, last year registered a turnover worth 233 million RON (66.5 million euros), an increase of 43% in RON, according to the information provided by the company.
During the same period, Lemarco's net income increased more than 20 times against 2005 climbing to 19 million RON (5.4 million euros). "The growth in income was registered both for the rising domestic prices of sugar and on the domestic currency's growth against the dollar," stated Dan Popovici, commercial manager with Lemarco.
Amid soaring quotes on the stock exchange, in early 2006 sugar reached prices of 25,000-26,000 ROL per kilogram in Romania, from less than 20,000 ROL in 2005.
Sugar production and distribution account for a total of 97% of the company's turnover, with 3% coming from furniture distribution.
The company owns the sugar plant in Liesti, which over the past 5 years has operated investments worth 4 million euros. The investments have been largely used to boost the company's production capacities, increase the efficiency of sugar extraction and to cut down on energy consumption.
"This year, we expect our turnover to rise, but by a smaller percentage than in the past. In the wake of Romania's EU integration and the distribution of production quotas for each sugar plant in Romania, the Liesti plant was allocated a much smaller quota than its current production capacity," Popovici stated.
According to company data, this year's sugar quota allotted to the plant is around 39,900 tonnes, whereas the Lemarco group last year processed more than 105,000 tonnes of sugar. According to information provided by the company, Lemarco asked for a sugar quota of 70,000 tonnes accounting for around 60% of the 125,000 tonnes produced in 2005.
The company's commercial manager also stated that Lemarco's priorities include boosting the sales of packaged sugar.
Lemarco was created in 1990 as a 100% Romanian-held company operating on the market of furniture production. In 1993, the company began importing raw sugar and began processing it in Romanian plants. By 2000, it had acquired the Liesti sugar plant in Galati county, and the Atlanta Corporation US firm had become one of its shareholder.
Sugar consumption has in recent years amounted to around 560,000 tonnes driving the value of the market above 250 million euros.
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