Packaging producer MJ Maillis Romania increased its net profits by 60% in the first quarter of the year to around 160,000 euros (5.8billion ROL) at a time of higher demand for packaging on the Romanian market.
The company''s turnover grew to 3.1 million euros (114.5 billion ROL) compared with total sales for the same period last year of around 2.3 million euros.
Company representatives were unavailable to provide additional information.
This year''s first quarter revenues rose to around 160,000 euros from the 25,000 euros seen in the first quarter of last year, while expenditure increased at a slower pace to around 30,000 euros.
The company''s plans for this year include boosting turnover to 15.7 million euros and net profits to 1.3 million euros. Last year sales were 11.5 million euros, with net profits of 0.8 million euros.
Packaging manufacturers have benefited from the growth in food product consumption, which grew some 12% in 2004 thanks to higher wages and the approximately 25% higher minimum wage in ROL. The higher demand for packaging is also partly based on the increasing food sales made through modern trade outlets - supermarkets, cash&carry stores and hypermarkets.
As of the end of the first quarter of 2005, MJ Maillis will boost the production capacity of its packaging machines and devices.
The decision to do so was based on the increasing demand, mainly from European Union countries, which are also the main recipients of the packaging machines manufactured by MJ Maillis in Romania.
Works for the new production hall started last September.
After completion, the company''s turnover is expected to grow significantly in 2005, MJ Maillis officials said.
In the last two years, MJ Maillis has invested over 3 million euros in modernising and retooling its production lines.
alexandru.cerchez@zf.ro
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