The current economic conditions continued to make an impact on the trend of the consumer goods market in 2011 and especially on the food sector. Both the dairy and the cheese markets were affected quite a lot, “stagnating because of the same factors last year: ever increasing raw material prices and the dwindling buying power of consumers,” Sergiu Mititelu, general manager of Hochland Romania, explained.
The company posted EUR45.4 million sales and EUR2.58 million net profit in 2010. It had 360 employees. Even though Hochland officials would not reveal last year’s results, they say they were up on 2010 and within the budget.
“As for 2011 sales, we did better than the 2010 figures and were within our forecasts,” Mititelu added.
The results the company posted on a stagnating market were made possible by a number of strategies it applied such as new product launches and development of the export business.
“Starting in 2011, export became an important part of Hochland Romania’s strategy. We’re only beginning but we have ambitious expansion plans,” Hochland Romania’s general manager said.
He did not reveal how much of the company’s sales exports accounted for or the export targets or countries for the next few years.
Sergiu Mititelu’s estimates for this year are cautious.
“The dairy market is significantly influenced by the performance of the entire economy. As long as the macroeconomy is unstable or the consumers’ purchasing power remains low, we cannot expect outstanding results. The biggest challenge of 2012 now more than ever will be the almost acute shortage of cash in trade and industry as a whole,” Mititelu says. “Many companies will suffer and some may even have to cease operations for lack of capital. What chances do they have left? Drastic restructuring, a joint venture or ultimately the sale of the company.”
Hochland entered Romania in 1993, and had its products distributed by Whiteland. The partnership remained in place even after Hochland bought two plants in Sighisoara and Sovata in the 1998-1999 period.
(English version by Loredana Fratila-Cristescu)