Milling and bakery company Vel Pitar Ramnicu-Valcea logged 1,100bn ROL (27 million euros) turnover during the first six months this year, 83% higher in ROL compared with the same time last year.
The two quarters in 2004 contributed almost equally to these results, both in terms of profit and in terms of revenues. The net income of the company went up 55% in real terms compared with the end of June 2003, from 600,000 euros to 925,000 euros. The main explanation for this trend is the investment policy of the last few years that saw it absorbing several other companies.
Vel Pitar took over Gorjpan Targu Jiu and Pangran Iasi in 2003, after having merged by absorption with Spicul Arges Pitesti in 2002. It has taken over three more entities in the meantime, Panificatie Postavarul Brasov, Panem Giurgiu and Libertatea Bucharest, with which it is to merge by yearend. Vel Pitar currently owns production centres in 7 counties. Its total operating revenues stand at 29 million euros, up two thirds from the first half of 2003.
The investment programme for this year totals more than three million euros, which are to be used to boost production and for an expansion of the distribution network. This figure is twice as high as that in 2003. Vel Pitar has finalised a 1.5 million-euro investment in a new line to make sliced and packaged bread at its Berceni facility in 2004.
Vel Pitar makes 7,500 tonnes of milling and bakery products a month, as well as about 300 tonnes of biscuits, 10 tonnes of wafers and approximately 120 tonnes of pasta. Moreover, the company has milling facilities, and grinds more than 12,000 tonnes of wheat every month. Vel Pitar accounts for 5% of the bread products market nationwide, while its share of the biscuit market reaches 5.6%. It furthermore accounts for 0.5% of the wafers market.
This April, the vice-president of Vel Pitar's Finance and Strategy Department estimated full-year turnover would reach 63 million euros, up 60% from the same time last year. Meanwhile, the smooth operation of the company was disturbed by a fire at one of its two factories in Valcea county.
"In the end, this accident all turned out for the best, because it made the team stronger, and the equipment was not affected. The full-year results will not be affected either," Trifu stated.
andrei.frunza@zf.ro
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