Elvila group, one of the top players in the Romanian furniture industry, owned by businessman Viorel Catarama, reported revenues worth 74 million euros for the first seven months of this year, up 4.9% from the same period of last year.
"The figures we registered during this period push full-year estimates up to 135 million euros," stated Viorel Catarama, Elvila chairman. Last year, the businessman lost 2 million euros because of the euro's decrease RON, for which reason he gave up some of the French and German customers so as to focus on Russia and Ukraine.
Early this year, Catarama had forecast Elvila would reach revenues worth $125 million (101.5 million euros). The company's announcement comes shortly after another two major players, Mobexpert and Silvarom, have downwardly revised their targets for this year.
"We counted on a smaller increase of the (domestic) furniture market during this period, which allowed us, after seven months, to raise our estimates for the entire year," added Catarama. Elvila derived 22.3% bigger income during this period.
Last year, Elvila reported 2 million dollar income, compared with an initial target of 3.8 million dollars. For this year, the group has budgeted income standing at 2.5 million dollars.
On the other hand, the group's export sales dropped by around 9% "in the wake of the ongoing growth of the domestic currency against the euro". During the same period, Catarama cut down personnel by 400 people, about 10% of the company's overall staff.
The company's sales in instalments also shrank during the first 7 months of the year, by around 24% from the similar period of last year, "due to lending restrictions".
Elvila will start work on the commercial centre in Ploiesti next spring. "We have already bought some land near Carrefour Ploiesti and work will start soon. Investments will amount to some 2 million euros," specified Catarama. He says he will not change the company's strategy, further focusing on medium outlets of 4,000 square metres. "The group's strategy will not change. We will continue to target the medium and small-income population segment," he also said.
Elvila group has recently initiated a process of merging the companies it owns, with a view to a possible floatation. Thus, Elvila has absorbed two of the biggest companies of the group, Elmoberom SA, which is involved in manufacturing, and Elvila International, which is involved in trade, according to data the company published in the Official Gazette.
Elvila's outlet network is made up of the company's own stores and over 20 franchised stores.
Elvila develops in 3 main directions, according to Catarama: franchises, distribution and its own networks. Elvila sells furniture through Metro, Selgros and Carrefour networks and is currently the biggest furniture producer domestically.
Elvila group
In the first 7 months of this year reported revenues worth 74m euros
These figures push up estimates for the entire year to 135m euros
Hit 22.3% higher income during the same period
Export sales fell by around 9% due to the RON's growth against the euro
Sales in instalment dropped by around 24% in the first 7 months of the year against the similar period of last year
Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels
