However, Hans Dewaele, head of P&G’s Romanian operations, says a rebound in people’s confidence in the economy, and hence a slight consumption increase, can be felt this year.
Distribution activities were the ones that dragged the group’s revenue down in 2013, and the decline could not be offset by a slight increase in the revenue of the two plants P&G owns in Romania, in Timisoara and Urlati.
In Romania, P&G operates through three companies, namely Procter&Gamble Distribution, Detergenti SA (the two plants) and Procter&Gamble Marketing.
Procter&Gamble Distribution, the company through which the US group sells its products in Romania, contributes over 80% to total revenue.
“The trend of our business in Romania in 2013 reflects the trend of overall consumption. This year, we felt a slight appetite revival against 2013, though there still are differences from other field to another,” said Dewaele.
The Belgian-born executive, who built his entire career around P&G, believes the population has started rebuilding its confidence in the economy and is more willing to spend. Increases are marginal for the time being and are owed to the overall positive trend of the economy lately.
“Romania is the market boasting the best performance in the Balkans,” specifies Dewaele, who coordinates P&G’s operations in 8 countries from Bucharest.
The executive, who came to Romania to take over the reins of P&G’s business in the Balkans in 2012, believes the following years will be years of adjustment to the new economic reality, and consumption is set to see moderate growth.
Today, P&G has 27 brands in Romania along ten product categories.
“In the case of FMCG companies, operating on a developed market where they already have a stable foothold, future increases will stand below 10%. Only fledgling businesses, operating in a new field, can rake in two-digit increases,” said P&G boss.
For P&G, growth will come from the fact that in Romania consumption lags behind that of Western states.
(English version by Catalina Apostoiu)