The company’s profit went up too, reaching RON3.5 million (EUR0.8 million), up RON2.4 million on the first nine months of 2010. Albalact is the first company in its line of business to announce nine-month financials. However, it is the only one listed on the stock market, which requires it to publish results quarterly. This is good news for the market, as consumer spending continued to decline by over 5% in the first months of the year, following the trend of the last two years.
“We invested significant resources in launching new products and new campaigns this year, but have also made great efforts to cut costs, so as to remain profitable. Boosting business and gaining market share remain a priority but we want to preserve profitability,” said Raul Ciurtin, chairman and general manager of Albalact.
He added that the company would complete new investments in production lines at the plant in Oiejdea, as well as at the Raraul plant that it bought in 2008. These are the only plants the company has.
As for future plans, Albalact intends to develop its product portfolio and start selling new product categories.
“There are still segments with high prospects for development on the dairy market in terms of value and we want to develop using these opportunities,” Ciurtin said without proving further details.
Albalact’s brands include Zuzu, Fulga and Raraul. Zuzu is the current leader on the pasteurized milk segment, with 30.4% market share by volume (according to the June 2011 data provided by the Nielsen market research company), and is also a leader on the milk market (UHT and pasteurized milk), with a 21.6% market share by volume, according to the same sources.
It posted EUR62.2 million sales last year. Albalact’s main shareholder is the Ciurtin family, which owns about 48%, followed by investment fund RC2, 25%.
Its rivals are Danone Romania, Friesland, Campina, Hochland Romania and Covalact.
(EUR1=RON4.3534)
(English version by Loredana Fratila-Cristescu)