The above-mentioned companies, as well as OMV Petrom (SNP.RO), Ropharma Brasov (RPH.RO) and Banca Carpatica (BCC.RO), target two-digit growth in revenue or profit in 2013.
The listed companies generally expect revenue to grow with the inflation, by an average of 4.3%. More than two thirds of them see profit increase in 2013, according to a ZF analysis of 71 publicly listed companies, except for the regional investment funds (SIF) and Fondul Proprietatea (FP.RO).
The total revenue of the 71 companies should go down by 1.3% to 49 billion lei (EUR11.3 billion) while profits should rise by 39% to RON5.1 billion.
Dairy producer Albalact Alba-Iulia, of businessman Raul Ciurtin, has one of the most optimistic budgets, as it estimates to end the year with a record profit of RON13.9 million, 89.4% higher than last year as a result of a 10% increase in sales, which should reach RON385.5 million. Albalact management proposed to pay dividends for the first time this year after using the profit for investments in the past. Proposed dividends amount to RON6.8 million.
“Food industry companies could do better this year because the premises for a better agricultural year are there, the prices of main products could go down and if the VAT of bread and other foods is cut, consumer spending will go up,” says Andrei Radulescu, analyst with stockbroker Broker Cluj.
“As for Albalact, it will gradually feel the effect of the ambitious investments is has conducted in recent years, because they expanded massively. They also started aggressive marketing.”
In the construction sector, Prefab Bucuresti, held by Marian Petre Milut, estimates 29.6% increase in sales and 41.8% rise in profit, which should reach RON3.4 million. Milut has recently decided to replace the management of his company, putting Adrian Razvan Ionescu in charge as general manager.
PVC trim maker Teraplast Bistrita (TRP.RO) expects 22.9% higher revenue and RON2.5 million profit, after the RON9 million loss of 2012.
On the other hand, analysts believe the construction industry will have another really difficult year, as the government will no longer invest as much as it did in 2012, which was an election year.
Automotive parts and accessories producer UAMT Oradea (UAM.RO), which relies on orders from Dacia Renault should see 19.7% growth in revenue and profit up 2.6 times to RON8 million.
The listed banks are more optimistic about their profitability this year. Banca Carpatica expects 34.6% rise in profit to RON33.7 million and 14.8% higher revenue in 2013.
Banca Transilvania (TLV.RO), the most profitable of the listed banks, expects profit to reach RON388 million, up 15.9% on 2012. BRD, too, expects a significant decline in the provisions that pushed it into the red, causing the RON331 million loss of last year.
“I expect banks to post better results in 2013 because the economy will stabilize even though the overall banking sector might post losses again. This year’s economic prospects are better, the GDP could grow by 1.4%, which is why we should see higher energy and gas consumption,” Andrei Radulescu believes.
He is optimistic about the exporting companies, and sees them rebound in the first two quarters because the stabilization of the euro zone climate and last year’s depreciation of the leu, which made Romanian exporters more competitive.
Sanofi-Aventis, which controls Zentiva Bucuresti, is the most optimistic in 2013, as it estimates profit to rise by 49% to RON47.9 million and sales to go up by 15.1%.
Retail pharmacy chain Ropharma Brasov sees profit going up by 40% to RON10 million and sales by 8% to RON442 million.
Construction and environmental protection equipment manufacturer Comelf Bistrita (CMF.RO) budgeted profit growth by 2.6 times to RON9.6 million, after seeing it quadruple last year. Sales should increase by 19.7%.
Businessman Gruia Stoica’s company Remar Pascani (RMAR.RO) estimates revenue to increase by 4.5 times to RON222 million. It also expects to step into the black with RON20.7 million profit.
Foraj Sonde Craiova, listed on the RASDAQ market and controlled by businessman Marius Cristescu, budgeted 64% rise in revenue and triple last year’s profit, which should reach RON16.9 million.
OMV Petrom, the largest company in Romania expects profit to hit a record high again, this time of RON4.43 billion, 15% higher than in 2012, while sales should drop 10%.
(English version by Loredana Fratila-Cristescu)