Delta Distribution, the largest distributor of ceramic tiles on the domestic market has budgeted turnover worth 67m euros in 2008, up around 50%, in the wake of network expansion and improved sales.
In 2007, the company met its annual growth target, which forecast a 50% increase in turnover, after it started a 5m-euro investment programme, which is expected to end in late 2008.
"In 2007, we derived turnover worth around 45m euros, 50% higher year-on-year. At the beginning of the year we expected 45-50% growth, so the result is in line with our expectations. The sales increase was generated by market growth and by the expansion of our distribution network," stated Dragos Bonea, chairman of Delta Distribution.
In March-April 2008 the company will finish its first large showroom in Bucharest, which will cover around 2,500 square metres of exhibition space, with more showrooms planned for opening in Iasi, Constanta and Pitesti in September and October. The company has already opened 2 stores in Oradea and Suceava.
"At present, we are focusing on the expansion of our distribution network. However, we're not ruling out possible acquisitions, but there's nothing material in this regard," specified Bonea.
The company imports and distributes ceramic tiles, sanitary ware, bathroom furniture and accessories, as well as bathtubs, shower cabins, saunas and pools.
The biggest sales were registered on the segment of floor and wall ceramic tiles and fitting materials, which weighed 70% in overall turnover.
According to Delta Distribution data, the ceramic tile market last year reached approximately 220-240m euros, up around 20%, and in terms of quantity reached 35-40 million square metres.
"Market growth was exclusively based on imports, whilst domestic production stalled at around 13 million square metres. Imports accounted for above 65% of the overall market, with the largest weight being held by tiles from Spain, Italy, China and Turkey," stated Bonea. The price of ceramic tiles increased by around 5-8% in 2007.
"The market will continue to witness considerable growth in 2008, by around 20-25%. Besides the rising purchasing power, to generate growth in terms of renovation activities, many housing projects were also started. As Romanian producers have no investment plans for 2008, the increase will continue to be based on imports," added Bonea.
At present, Delta Distribution has over 500 employees with a network of 29 stores and 16 regional warehouses. Dragos Bonea founded the business in 1996 together with 2 associates.
In November 2004, the two associates withdrew and sold 45% to an offshore firm, which subsequently sold the stake to Poland's Weston Holdings.
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