Its turnover dropped 25% to RON80 million in January-June 2016.
Argus said in a report that a growing pressure is being put on the delivery price of refined and bottled sunflower oil by Argus clients operating on the retail market in Romania, without correlating the costs of acquisition and storage of sunflower seeds, as raw material.
This aspect, corroborated with a decline in edible oil consumption countrywide, a fierce competition from other producers (big and small) operating in Romania or in neighbouring countries, and the commercial costs imposed in sales contracts, have reduced and will continue to reduce profit margins, pushing Argus into loss.
In the first half of 2016, Argus Constanta merged through absorption with Rex Agra (Argus absorbed Agra). In the mentioned period, Argus’ shareholding structure remained relatively unchanged, namely, SIF Oltenia (an 86.21% stake) and others (a 13% stake).