Meda Prod, one of the largest charcuterie producers on the local market, controlled by businessman Gheorghe Netoiu and partner Luchi Georgescu, believes the company will double its turnover growth rate as a result of a new production facility in Bucharest.
"We estimate an around 75 million RON (20 million euros) turnover this year, up by approximately 23% compared with 2007, and an increase in the profit margin, provided the RON does not lose any more of its value and meat prices remain relatively stable," said Florin Rizea, general manager of Meda Prod.
The company saw a 25% increase in turnover during the first three months of this year compared with the same time last year, amid an increase in output, and an approximately 5% rise in prices.
In 2007, Meda posted 61 million RON (18. million euros) turnover, up by around 10% against the previous year, when the company registered 55.7 million RON (15.7 million euros) in turnover, according to data from the Finance Ministry. Meda representatives believe the increase was related to changes in the sales structure.
"Lately, we have noticed a change in consumption trends, with consumers preferring more expensive varieties of charcuterie products," added Meda Prod's general manager.
The company intends to diversify and rebrand its product portfolio this year. "We will launch two brands, one on the medium segment, and one on the premium segment, with the latter to include sliced and pre-packed refrigerated products. For the time being, we cannot reveal the name of the new products, because we are in the process of registering them with the OSIM (Romanian State Office for Inventions and Trademarks)," explained Rizea.
Last year, the company's profit margin fell, from around 15% two years ago to 9.5% at the end of 2007. At the end of 2007, Meda posted profit worth approximately 1.7 million euros, down 2.4 million euros against two years ago.
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