Boromir Ramnicu-Valcea, one of the leading producers in the milling and bakery industry, forecasts to end the year with an over 25% higher turnover than last year, approximately 600 million RON (more than 166 million euros).
"The growth rate of the turnover in the last five months of 2008 will stand at 15% compared with the same time in 2007. The annual average in 2008 will be approximately 25% compared with 2007," stated Constantin Boromiz, general manager and shareholder of the Boromir group.
Boromir posted 100.7 million-euro turnover in the first seven months of this year, an increase of 42% against the same time in the previous year and a gross operating income (EBIT) of 4.2 million euros.
In the January-July period of 2007, Boromir made 15 million euros in net profit, as a result of the sale of an almost 25,000 square metre plot of land that belonged to Amylon Sibiu (a division of the group), to a company controlled by investment fund Immoeast, in a deal put at approximately 9.4 million euros.
Boromir ended last year with 480 million RON (143.8 million euros) in turnover, an increase of almost 69% compared with the 2006 results and a profit worth 35 million RON (10.4 million euro)- ten times higher than the profit derived two years ago.
"Last year's leap in turnover is due to the launch of new products and new production facilities. At the same time, growth was influenced by the increase in the price of milling products," Boromiz explained.
The producer has 5.5 million euros in total investments scheduled for 2008, which will be used to build a frozen pastry unit in Ramnicu Valcea, a pretzel unit in Buzau and to acquire vehicles.
Approximately 500,000 euros will be allocated for the promotional budget of the company.
Boromir bought the brands and manufacturing lines of Cluj-based sweets maker Feleacul, for approximately 500,000 euros, through starch maker Amylon Sibiu this year.
"The products sold as Feleacul will be made in Cluj until the second half of next year. Both the promotion and the marketing strategies of the Feleacul products remain in place for now, as does the entire range of products," Boromir's shareholder added.
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