Net profits for the Romanian division of packaging and packaging machinery maker MJ Maillis grew by more than 70% in 2004 to 0.8 million euros, achieved from 20% higher sales of 11.2 million euros. Nine-month profit growth had reached 25%.
These preliminary results are better than those predicted early this year based on the average ROL/EUR exchange rates published by the NBR for 2003 and 2004. MJ Maillis officials made no comment on the increased turnover and company profits.
Packaging makers, whose business depends directly on the food industry, benefited last year from the upturn in food consumption.
Food consumption rose 12% in 2004, a year which saw pay rises awarded to state employees and a 25% increase in ROL to the minimum wage. The high demand for packaging can also be explained by the ever-increasing number of the sales made through modern retail outlets, such as supermarkets, cash & carry and hypermarkets.
MJ Maillis plans to the boost production capacity of its packaging machinery and equipment in the third quarter of 2005. This decision was based on the level of demand, which comes mainly from European Union countries, which are among the top export destinations for MJ Maillis machines made in Romania. Last year's exports went to Germany, Italy and Bulgaria. And apart from its own output, MJ Maillis also sells the products of its Greece-based parent company.
Work on the new production facility began in September of last year. After completion, the new facility will enable the company to increase its turnover substantially in 2005, MJ Maillis officials said.
MJ Maillis has invested more than 3 million euros over the last two years in upgrading and retooling production lines. Production capacity was increased by 1,400 tonnes per year in 2003 following a 0.5 million euro investment.
Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels
