Although the company’s turnover managed to see a rise, its profit fell because of aggressive promotional offers, a weapon increasingly used by retailers in the sector since the beginning of the crisis.
“The turnover recorded in the first six months of 2012 is double digit, but we have noticed a 2% decline in gross profitability. We expect to end the year with an over 6% turnover increase against 2011,” said Razvan Afenduli, who has been running Coty Romania for over two years.
A 6% turnover increase would bring Coty’s business to EUR17.3 million, a four-year high. The financial crisis was seen in the turnover of the fragrance and cosmetics importer, which fell by 13% in 2009 from EUR18 million in 2008, a level that has yet to be reached again.
Coty managed to return to a profit of EUR0.2 million in 2011 after three consecutive years of losses.
(English version by Daniela Stoican)