Nestle Romania, the domestic unit of Swiss food giant Nestle, saw its sales advance by over 30% in the first nine months of this year against the same period in 2006.
"We are posting sale increases for all product categories, in all regions and along all distribution channels," specified Paul Nuber, the company's general manager.
Earlier this year, Nuber estimated Nestle Romania (excluding Nestle Purina and Nestle Ice Cream Romania) turnover would rise by 20%, but now believes the rate could exceed expectations, given the trend in the first three quarters.
In Q1, Nestle Romania reported 40% sales growth against the first 3 months of 2006. Last year, the company derived turnover worth almost 90 million euros, up 25% year-on-year, according to data from the Finance Ministry.
Including sales of pet food (Nestle Purina) and ice cream, the Swiss company generated turnover worth around 120m euros on the Romanian market in 2006.
According to the company data, this year the fastest growth rates were registered on the segments of baby food, cereals and the food services division (Nescafe vending machines).
"We've also improved our profit margins despite price increases of raw materials. In addition, the trend of the exchange rate, which strengthened the RON, was favourable for us," added the manager.
At present, the company produces Joe wafers and a portion of Maggy products in Romania, while the remaining products are imported from Nestle plants in other countries.
Nestle Romania exports 20-25% of the Timisoara plant's production, primarily to the group's other firms. Nuber also said he planned to boost the plant's exports, and thus bolster the significance of the Romanian unit within the group.
Exports to other companies in the group surged by around 70% this year. In order to expand production, Nestle is set to install new production equipment in its Timisoara plant.
Nuber did not voice any concerns regarding the rising wages on the Romanian market, but says he is watching this evolution closely.
This year, the company experienced some problems finding temporary employees in Timisoara, because of the area's low rate of unemployment.
"In exchange, recruiting permanent employees is quite easy (...)," specified Nuber. At present, Nestle Romania has around 600 employees, of whom more than 300 work in Timisoara.
The group's latest international acquisitions include mineral water producer Henniez Swiss, and US baby food producer Gerber, which are not expected to have any impact on the Romanian market, at least for the time being.
However, Nuber does not rule out the possibility of the group's future acquisitions indirectly boosting Nestle's Romanian production capacities.
Nestle Romania
This year, the fastest growth rates were registered on the segments of baby food, cereals and food services
The company produces Joe wafers and a portion of Maggy products in Romania, while the remaining products are imported from Nestle plants in other countries
20-25% of the production from Nestle's Timisoara plant
is exported
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