The Italian-owned company holds stakes in several companies in the real estate and the energy industries and is but an example of a business whose net profit was several thousand-fold higher than its turnover.
Net margins in the local economy typically begin at 3% to 5% of turnover for the major retailers and may reach as much as 20% to 30% for energy companies. Petrom, the company with the highest turnover and profit in Romania, posted 19.7% net margin last year (EUR864 million profit and EUR4.4 billion turnover), while Kaufland, the leading retailer posted 4.2% profit margin (EUR61.6 million profit and EUR1.4 billion turnover).
How can small companies, some of which do not even have any employees, operate at such high profit margins?
“This may look like a paradox at first but it’s because either a mistake in reporting (…) or the company in question does not have any revenue from its core business and only financial or one-off revenue (…),” says Gabriel Sincu, executive director tax with Ernst & Young Romania.
A number of 50 companies posted RON100 million profit together, 846 times higher than their turnover.
(English version by Loredana Fratila-Cristescu)
|
Company |
2012 turnover (lei) |
2012 net profit (lei) |
Profit margin (%) |
|
AMV EST GROUP SRL |
3 |
702,463 |
234,154 |
|
GAROWA SRL |
2 |
407,093 |
203,547 |
|
LACTOCRIST SRL |
35 |
547,973 |
15,656 |
|
GRUIA SERVCOM SRL |
8 |
94,996 |
11,875 |
|
DRUMURI SI PODURI MIERCUREA-CIUC SRL |
1,122 |
12,994,184 |
11,581 |
|
MICHAEL & MARI COMPANY EXCHANGE SRL |
40 |
411,951 |
10,299 |
|
DEFTRANS SRL |
1 |
7,040 |
7,040 |
|
KEVI HENI SRL |
200 |
988,635 |
4,943 |
|
SEVASE TRANS SRL |
40 |
154,942 |
3,874 |
|
MECANO GROUND FARM SRL |
58 |
181,079 |
3,122 |
|
ECOLOGICA SA |
200 |
608,349 |
3,042 |
|
PRICETON MURES SRL |
7,466 |
11,137,030 |
1,492 |
|
ILS REAL ESTATE SRL |
597 |
889,291 |
1,490 |
|
OTIMO SRL |
717 |
921,858 |
1,286 |
|
BIALIA SRL |
100 |
124,734 |
1,247 |
|
AMERICAN ENTERPRISE SRL |
54 |
62,628 |
1,160 |
|
MERPLAST SRL |
4,000 |
4,180,557 |
1,045 |
|
CASA CU LEGUME SRL |
1 |
1,032 |
1,032 |
|
RESIAL SA |
108 |
102,557 |
950 |
|
ELJ VATRA SRL |
33,861 |
30,975,235 |
915 |
|
BERTELLI RE SRL |
443 |
383,886 |
867 |
|
ACIR SRL |
4 |
3,314 |
829 |
|
PROSANIO SA |
690 |
483,582 |
701 |
|
VIVIAN PROD SRL |
40 |
27,017 |
675 |
|
CENTRUL DE AFACERI BUCURESTI SRL |
2,400 |
1,601,671 |
667 |
|
ATLANTIC ENERGY SRL |
112 |
73,748 |
658 |
|
BERE TREI STEJARI SA |
14,068 |
9,155,721 |
651 |
|
INTERAGENT SRL |
4,839 |
2,957,886 |
611 |
|
MAGNE FARM SRL |
767 |
467,027 |
609 |
|
DECODOR 2002 SRL |
197 |
115,592 |
587 |
|
NETWORK PRESS CONCEPT SA |
2,237 |
1,277,942 |
571 |
|
PROCONFORT SERV SRL |
25 |
13,084 |
523 |
|
NORD AFFARI SRL |
1,128 |
555,669 |
493 |
|
REDONT SRL |
1,019 |
452,047 |
444 |
|
GLOBE TROTTERS SRL |
1,130 |
487,537 |
431 |
|
AGRIMPEX SRL |
3 |
1,252 |
417 |
|
BATROSCOM SA |
18,000 |
7,500,127 |
417 |
|
VESTIL DISTRIBUTION SRL |
718 |
284,567 |
396 |
|
KH PROCESS ENGINEERING SRL |
2,732 |
1,068,637 |
391 |
|
OVIPET MOTORS SRL |
705 |
275,122 |
390 |
|
TOP PROIECT CONSULTING SRL |
1,500 |
539,026 |
359 |
|
ROMVELO SA |
2,638 |
896,415 |
340 |
|
CRISONA TAXI SRL |
14 |
4,734 |
338 |
|
MAURER & SEDROSER SRL |
202 |
62,084 |
307 |
|
ARMONIE STRAULESTI 45 SRL |
4,397 |
1,348,891 |
307 |
|
MEGAVIS COM SRL |
484 |
146,249 |
302 |
|
CASA MEA 2000 SERV SRL |
74 |
21,465 |
290 |
|
REVAN COM SA |
737 |
213,497 |
290 |
|
VILCEANA SA |
5,000 |
1,366,552 |
273 |
|
Total/Average |
114,916 |
97,277,968 |
846 |
Source: Trade Registry