Mircea Vlah, chief executive officer of Dumagas, expects a rise in profit this year, with EBITDA set to double in three to four years from the EUR3.8 million in 2015.
“We have no other way but grow. We will continue to grow on the international transportation, distribution and controlled temperature storage, but also on the two specialized lines of business. We’re at the end of two years of reorganization and restructuring,” the executive told ZF in an interview.
Mircea Vlah has previously worked for DHL, Danzas and BRD.
The company has 480 employees and works with manufacturers in Romania that ship their products abroad, as well as with companies in Bulgaria and Turkey, for which it carries freight to western Europe.
Dumagas ended last year with 191 million lei (EUR42.4 million) revenue, up about 12% on the previous year, according to ZF’s calculations based on the data supplied by the company. It also posted RON331,000 net profit, after a number of years in the red. Dumagas had not made any profit since 2007 and has since had a change of ownership, going from the Dugaesescu family to private equity firm Bancroft.
“The growth drivers of the company were the same as in 2014. In 2014 we started a strategy to reorganize and restructure the business and pursued operational efficiency improvement for two years, refreshed the fleet fast, trained personnel (…).”
This year’s revenue will be lower because of the sale of the food tanker division to Klacska. The company also sold the ambient storage division. It did some cleanup of its vehicle fleet, as well, selling some old vehicles for EUR3 million.
The company plans to grow using both its own fleet and working with subcontractors, and this is where it will direct its investments.
“We will revisit the past customer portfolio and try to rebuild partnerships on other bases and I mean here the ties with Turkey and Eastern Europe.” (EUR1=RON4.5039)
(English version by Loredana Fratila-Cristescu)