Fan Courier delivery services provider, one of the top three players on the domestic market, derived turnover worth 16 million euros in the first five months of this year, up 50% in RON compared with the same period last year.
The higher-than-expected growth rate came in the wake of market growth.
"The market expanded a great deal and sales were also driven by the market in the first five months of this year. Even if we hadn't managed to attract any new customers, we'd have still registered an above 20% growth from our existing customer base," said Adrian Mihai, business development manager of Fan Courier and one of the company's three shareholders.
He explained the rapid growth rate brought companies not just advantages, but disadvantages, as well.
"We believe the market will settle, which is also a plus. The very high increases were not to our liking as a 50% advance also entails some problems. Market development has pushed our resources and recruitment to the maximum".
The company now has 2,000 employees, 20% more than the number registered at the beginning of the year. In addition, Fan Courier also resorted to hiring outside Bucharest last year.
At the same time, the company is carrying out investments worth 10m euros in new headquarters and plans to equip couriers with PDAs, a move that will involve a sum that ranges between 1.5 and 2m euros.
The high level of investments required to develop courier companies was one of the reasons why there was a wave of mergers and acquisitions at the start of the year.
As a result, all major players on the courier market strengthened their positions, except Fan Courier, the only top three company that refused to announce an intention to sell.
"For the time being, we are able to sustain our investments and we do not plan to sell the company. We believe that if we succeed in finalising the investments we've embarked upon, our level will be similar to that of a European company. Instead, we're considering the possible acquisition of some firms that operate on certain niches, but we're not in talks with anybody at present," said Adrian Mihai.
Despite the market's still witnessing fast growth, companies' profit margins have been falling since last year. In 2007, Fan Courier derived consolidated turnover worth 33.2m euros and net income worth 7.3m euros.
"The profit margin dropped by 3-5% in the first half of this year due to rising fuel prices. The surging costs pushed us to raise rates as well," said Mihai. Besides fuel prices, the poor infrastructure also had a direct impact on costs.
Fan Courier puts last year's courier market at 200m euros. "I expect the growth rate to slow down in the second half of 2008 as the market settles," added Adrian Mihai.
Fan Courier
In the first five months of this year derived turnover worth 16 million euros, up 50% in RON against the same period last year due to market growth
Currently has 2,000 employees, 20% more than the number registered at the start of the year
Is the only top three company that has yet to announce its intention to sell
Profit margin dropped by 3-5% in the first half of this year due to rising fuel prices and the poor infrastructure
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