Interbrands and Top Brands Distribution, companies that distribute more than one billion euros’ worth of products from such giants as BAT, Philip Morris and Kraft, posted more than 45% increases in operating incomes in H1 compared with the corresponding period of 2008.
The sales of the two companies went up 10%, primarily because of the rise in prices of the cigarettes distributed, following the tobacco excise tax rise. The pace is identical to the one reported in the first quarter compared with the same time in 2008.
Interbrands, the leader of the market, posted 9.6 million RON (2.3 million euros) EBITDA in the first half, up 46% from the corresponding period of last year. The distributor has shed about 500 jobs over the past two years and reduced the warehousing space used, as cost-cutting steps that paid off in the first half of this year.
"Among the EBITDA growth pillars was the project to remodel the business that we started in the first quarter of 2007. Notable changes are those of the number of employees, which went down from 2,300 to 1,800 during this period and of the rent costs. They went down both as a result of the reduction of the warehousing space and as a result of lower rents," said Rand Sherif, CEO of Interbrands Marketing & Distribution.
The company posted 3.1 million RON (0.7 million euros) gross profit in the first half, after having seen 2.9 million RON (0.7 million euros) losses in the first six months of 2008.
In turn, Top Brands Distribution (TBD), the second-largest player on the market of consumer goods distribution services posted 500 million RON (118 million euros) turnover in the first half, up 10% on the same time in 2008, and a 77% increase in operating income, to 8 million RON (2 million euros).
"We implemented a series of policies and procedures intended to offset the effects of the financial crisis as early as 2008, in order to ensure a good cost and cash recovery management. The number of employees was not significantly reduced as a result of the implementation of these procedures, there were only natural personnel fluctuations," said Virgil Munteanu, TBD’s communication manager.
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