“2017 was an outstanding year, we doubled operating income. The entire market was on the rise. We are more moderate about this year and budgeted 10% to 15% higher revenue,” chief executive officer Mircea Vlah told ZF.
The company delivers car parts abroad and has international transportation contracts with local automotive manufacturers in Romania.
This year, Dumagas will carry car parts and 2,500 units of the new Ford model (Eco Sport) made in Craiova to markets like Poland and Germany, Vlah said.
Besides the contract for the new model Ford assembles in Craiova, Dumagas also has a new contract with Star Transmission in Sebes, the local division of Daimler AG. Other new contracts include FMCG companies like Colgate and Beiersdorf, the maker of the Nivea products.
It also strengthened its working relationship with retailers like Kaufland and Lidl, which have high volumes of products to transport, Mircea Vlah added. Dumagas provides domestic transportation services to major retailers like Kaufland, Carrefour, Lidl and also works with Unilever and beer and soft drinks bottlers. Major retailers contribute 50% of the domestic transportation revenue of Dumagas, following their expansion in the past two years.
Dumagas budgeted EUR3 million investment in 30 new trucks and a further EUR1 million for retooling in 2018.
Dumagas posted 135 million lei (EUR30 million) revenue in 2016, down from RON162 million in 2015, according to Finance Ministry data.
(English version by Loredana Fratila-Cristescu)