“We ended 2013 with revenue of above EUR250 million and for this year have budgeted an increase of around 10%. Moreover, in 2015 we will again reach the EUR300 million mark,” said Ostahie.
He did not provide exact figures on 2013 results, but states the EBITDA margin was 4%.
In 2012, the last year for which there are public figures available, Altex group, which includes the stores of the same name and Media Galaxy units, registered revenue of EUR254 million.
The entrepreneur says that in the coming years the growth engine will be the online segment, which has come to contribute 10% to the company’s revenue.
“In the following years, our focus will be on the online segment, which advanced by 50% in 2013 and still has room for growth. For this year, we estimated a 25% advance of the online sales and for the coming years growth rates will be two-digit ones”.
The product range and prices are the same on the online and offline segments, according to Altex officials.
“We will further open new stores, but at a prudent pace of 4-5 units per year. Large cities, which we have covered best, are still our focus”.
At present, Altex, leader of the Romanian electro-IT market, has 90 stores. The group in 2009 embarked on an extensive restructuring process. The businessman says the company has in recent years relocated most of its street-front stores in shopping centers and malls as these are Romanians’ main shopping destinations.
Dan Ostahie says the electro-IT market will expand by 5% this year on several factors, such as increased consumer confidence, labor market stability and falling borrowing costs for lei.
“Moreover, prices of many products have gone down, technology is more accessible and young people are an increasingly more dynamic and important segment”. Sales will also be spurred by the World Football Championships and shopping events such as Black Friday.
At present, Ostahie values the market at EUR1.5 billion (a sum that includes the telecom segment). Specialized retailers hold around 40% of the market, followed by hypermarkets and cash&carry units with 30%-40%, the online segment, which climbed to 10%-20%, while independent stores hold just 10%.
For this year, the entrepreneur expects a consumption rebound, but does not talk about spectacular increases. “GDP needs to soar and recoup the declines of 2009-2010. The past three years have seen increases, but small ones, and I believe 2014 and 2015 will bring significant growth. Moreover, I believe GDP will revert to the 2008 level in 2015”.
Ostahie says the consumer lending rebound is a good sign for the economy and consumption.
“An economy needs lending for growth. I do not think it is good for Romanians to take out large loans directly, so that I believe it is healthy for the tap of consumer loans, of around 2,000 lei, to be opened”.
(English version by Catalina Apostoiu)