The company maintained its earnings before interest, taxes, depreciation and amortization (EBITDA) at 13%-14% of sales last year, while the market shrank by 14%-15%. Kosza said.
“At the end of September, we had sales similar to those of 2009, but the final quarter simply halted sales. On November 20, we’ve ended the year, because raw material prices grew, and we could no longer transmit these increases to the market,” the company representative added.
For this year, the company has targets for operating profit, but it does not intend to increase its market share “at all costs”, according to Kosza.
The main problem for players on this segment is the reduced purchase power and the downtrodden real estate segment.
According to Fabryo estimates, the decorative paint market will fall 10% this year from EUR149 million in 2010.
“I believe that in the second half of 2012, the more likely scenario is stagnation (of the market), namely the decline should stop, but I don’t expect any growth,” she added.
The company’s main strategy to support sales this year included marketing and promotion, the launch of low-cost products and the development of a chain of franchise stores, called Renovis.
The first three franchise units were launched in Bucharest, and the company expects to launch another 10 stores by the end of the year, according to Kosza.
Investment in one store reaches EUR40,000. The company plans to invest a total EUR1.6 million in 2011.
Fabryo Corporation is owned by Swedish investment firm Oresa Ventures.
Top players on the local paint and lacquer segment include Policolor, Deutek, Kober, Daw Benta, Atlas, Sarcom and Druckfarben.