This is the first decline in first half revenue the dairy business has seen since 2011.
Albalact, which owns the Zuzu brand, has been growing steadily in the past few years, becoming the leading dairy producer in the country in an industry put at almost EUR1 billion.
The first half also came with a drop in net profit. Albalact posted about RON6 million net profit, three times lower than in the corresponding period of 2016. The officials of the company did not return ZF’s calls for comment by press time.
This is the first full first half under the management of the new owner, Lactalis. The French group completed the tender offer for Albalact last September and later had it delisted from the Bucharest Stock Exchange in its position as owner of more than 99% in it. Prior to the takeover, Albalact had posted record profit in the first half of 2016, RON18.8 million.
The Albalact group consists of Albalact, Raraul SA Campulung Moldovenesc and Albalact Logistic. Albalact company alone posted RON16.5 million net profit in the first half last year. The takeover of Albalact got Lactalis the top spot on the dairy market in Romania, where it arrived a decade ago by buying LaDorna group from businessman Jean Valvis.
(English version by Loredana Fratila-Cristescu)