The company’s profit margin stood at 12% last year, while Kaufland, the leading grocery retailer in Romania by sales and net profit, saw a profit margin of 5%. Moreover, the sales of the DIY retailer, a company owned by brothers Adrian and Dragos Paval, reached RON3.4 billion in 2014, an increase of 26% on the previous year.
“The fixed costs of 2014 were divided among a greater number of stores and the high volumes of merchandise acquired gave us and our customers better prices,” Dragos Paval, chairman and majority shareholder, told ZF.
While construction, real estate and retail suffered as a result of the crisis, Dedeman constantly saw its sales, profit and number of employees rise. The company has tripled its sales and increased its net profit six-fold in the past seven years.
(English version by Loredana Fratila-Cristescu)