Vel Pitar, one of the leading bakery producers on the Romanianmarket, ended last year with a 15% turnover decline in euros,although the volume of sales was similar to the 2008 level.
The turnover decline had to do both with the significantdevaluation of the RON, and with the price cuts made last year.
"2009 was a difficult year and unfortunately 2010 will not beeasy, either. Everybody says people will always eat bread, howeverhard the times may be, but things are not as simple as that. Youcannot be an island of happiness in an ocean of despair. We in turnhad problems with suppliers and financing, which is now moreexpensive and more difficult to obtain, as well as with a series ofclients who were no longer able to meet their paymentrequirements," explains George Frincu, president of the Vel Pitargroup.
Frincu did not reveal the group's consolidated results, but,according to ZF calculations based on data provided by the company,Vel Pitar's turnover revolved around 130 million euros.
The Vel Pitar official says that, despite its turnover decline,the producer did not resort to layoffs or pay cuts last year,preferring instead to streamline production processes in order tocut the use of raw materials, as well as utility consumption(electricity, gas, fuels).
"In addition, we have redefined our markets and reorganised ourlogistical activity. We transported more products by coming up withmore efficient routes, we renegotiated contracts with suppliers andthe rent we pay. What we did was look more carefully at internalprocesses, and restructured our costs, which is very difficult fora group with 12 plants and 4,500 employees," explained thepresident of Vel Pitar, a company that holds 8% of the Romanianbakery market and 15% of the milling market.
Another problem that the bakery producer faced was the fact thatthe black market rose from 30-34% at the beginning of last year toaround 40% at present, according to company data.
"Last year small producers found refuge on the black market,which is normal when the economy no longer grows and the rush formoney becomes one's main concern. However, we managed to preserveour profit margins at the 2008 level. Vel Pitar's production wasnot less significant, either, because the level of activity wassimilar," the manager added.
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