ZF English

Turnover rises while profits fall for Napolact

24.05.2005, 19:10 23

Dairy producer Napolact Cluj Napoca, which is held by Dutch group Friesland Foods, closed 2004 with more than 33.5 million euros (1,365bn ROL) in turnover, an increase of nearly 20% on the previous yeara??s figure of 28.7 million euros (1,077bn ROL). Net profits recoiled slightly, however, falling 5% to 3.8 million euros (155bn ROL) against 4 million euros (151bn ROL) in 2003.

Napolact produces fresh milk, fresh milk products, butter, cheese and ice cream. Its main market is Cluj County, where it sells nearly three quarters of its milk and nearly half of its fresh dairy products. More than 60% of the companya??s output for local sales was made through its seven shops and warehouse in Cluj-Napoca, while some 15% of sales in Romania came through major retail chains.

Fresh products accounted for 36% of the companya??s turnover last year, followed by ice cream, cheese, powdered milk, fresh milk and butter, and finally its Dots chocolate bars and Completa coffee creamer, which accounted for only 0.4% of the total.

The Friesland group entered Romania in 2001 after taking over the operations of Nutricia Dairy and Drinks (NDD), which dropped its dairy product business in Central and Eastern Europe. The company has four factories that produce milk and milk products - Somesana, Belcar, Industrializarea Laptelui Mures and Napolact Cluj-Napoca.

Friesland acquired around 40% in Napolact through a tender in 2002, later becoming the companya??s majority shareholder. The Friesland brands sold in Romania include its Milli and Oke milk products, Dots chocolate bars and Completa coffee creamer.

Frieslanda??s main competitors on the domestic market are Danone, LaDorna, Campina, Hochland and Albalact. Romania has negotiated an annual output of 3 billion litres with the EU - however, the industry currently produces only around 1.2 billion litres.

stelian.negrea@zf.ro

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