Boromir group, one of Romania's biggest milling and bakery firms, saw sales stagnate in the first quarter of this year against the same period of 2008 and estimates the trend will not change until yearend.
"In the first three months of this year, we got an 8% increase in long life product sales and a 10% drop in sales on the milling segment as a result of the falling raw material prices. Overall, though, Boromir sales stayed at the level of 2008 in the first three months of this year," stated Constantin Boromiz, shareholder and CEO in Boromir group.
Boromiz added that though wheat prices will continue to go down until this year's harvest, the group does not take into account any price cuts.
Boromir group ended 2008 with EBITDA worth 32m RON (8.6m euros) and turnover worth some 548m RON (148.8m euros), up 14% in RON from 2007, below the company's initial projections.
"I expect this year to end with the same figures as in 2008, both in terms of volume sales and turnover in RON," estimates Boromiz. Thus, he estimates Boromir group will see a 10% sales drop on the milling segment, a 10% increase in retail sales, flat turnover on the fresh bakery product segment and a 30% growth in sales in its own store network.
Boromiz says the 2009 investment budget for the entire group has not been finalised, yet, but that he plans to invest at least 500,000 euros to expand and modernise the store network now including 40 stores.
"Sales in our own stores rose by 70% last year compared with 2007 and continued to rise in the first three months of this year. This is why we're considering adding a further 5 stores to the network this year. Investments in the opening of a new store will be operated from our own funds, revolving around 100,000 euros per store," Boromiz stated.
Boromir now owns stores only in Valcea and Buzau counties, but is considering both acquiring and renting new spaces for expansion.
Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels
