These are the first results of the company after businessman Catalin Chelu acquired control.
Chelu’s name has been connected to a number of fraud scandals; he was investigated and arrested in a bribery case at the Interior Ministry at the beginning of last year, after being caught in the act as he was trying to bribe former state secretary Dan Fatuloiu.
How do Argus officials explain the increase in raw material costs?
“As a result of the very high price of grain and oilseeds, because of the poor harvest in the Russian Federation, a traditional exporter of oilseeds and vegetable oil, the sunflower price on the international markets was very high compared with the prices of the previous year. Argus bought sunflower at a price that took into account the prices of the other processors on the one hand, and on the other the prices of the exporter companies,” reads a report by Argus officials posted on the corporate website.
The officials also said the raw material purchases were made from September through November last year. They did not specify whether the company bought the raw material from its home market or imported it or the prices paid.
Under the circumstances, the rising raw material costs of Argus are surprising, considering the National Statistics Institute data shows the sunflower price stood at 1.43 lei/kilo (EUR0.32) in October and November 2011, the same as the average price in the previous year.
Whereas Argus’ net profit halved last year, revenue was up, reaching EUR55 million, an increase of 6.5% on 2010.
Exports increased, as well, this time by 36% to EUR5.4 million.
The local vegetable oil market shrank by 20% in volume last year, Argus officials say in the report. The Romanian vegetable oil market is estimated at EUR350 million to EUR400 million. (EUR1=RON4.4032)
(English version by Loredana Fratila-Cristescu)