Orkla Foods Romania (OFR), the branch of Norwegian giant Orkla Foods posted a 33% increase in sales in the first quarter, based on the results of the company''s newest brand, Ardealul.
"The changes and strategic decisions over the last two years are starting to pay off," says Aliz Kosza, chief executive of Orkla Foods Romania.
After having bought the pate factory Ardealul a year ago, following a deal estimated at 10 million euros, the product portfolio structure changed. The pate became the best selling product, outselling margarine.
The biggest growth according to OFR data was the 58% registered by the sauce category in the first quarter, while jams witnessed 35% growth from the same time in 2005, due to new products being launched at the end of 2005. The retail margarine sales were 15% higher, while the ketchup saw growth of 16% in its turn.
Orkla started a 1.5 million-euro investment in the factory in Covasna, paid for with SAPARD funds.
Whereas the company focused on diversifying its portfolio in 2004, having launched 14 new products, Orkla preferred to consolidate its business last year.
As part of this process, the company bought 100% in Royal Brinkers Romania, the second producer of margarine for household use in the country.
"The second quarter pits OFR against a hardly negligible challenge: the takeover and the integration plan of Royal Brinkers," the company officials say.
Orkla entered the Romanian market four years ago when it bought Topway Food. Since that moment on, the Norwegian group has acquired the second leading pate producer, Ardealul Covasna, several fruit and vegetable processing lines from Grup JM based in Targoviste and the second leading producer of margarine for household use, Royal Brinkers Romania.
According to the Finance Ministry website, Orkla Foods Romania posted 76.1 million RON (18.7 million euro) turnover in 2004, an increase of 17% in RON from the previous year. The company officials did not reveal 2005 results.
OFR
* Posted 76.1m RON (17.6m euro) turnover in 2004, did not reveal full-year results for 2005
* First-quarter sales increase was driven by the Ardealul pate
* Preferred to focus on consolidating its business in 2005 and bought number two on the market of margarine for household use, Royal Brinkers Romania as a result
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