9% business growth for Covalact

Dairy producer Covalact, based in Sfantu-Gheorghe, one of the top ten players on the local market, saw turnover worth 8.4 million euros in the first seven months of this year, a 9% increase against the same period in 2005. The company’s profit exceeded 450,000 euros, almost doubling against the January-July period of 2005. “We tried to put in place a better cost management system, we saved energy and we also saw better yields,” stated Ioan Balan, general manager of Covalact. He added that the biggest increases in sales were derived from the powder milk (which covers a third of the company’s sales) and butter segments. “The fresh dairy market stagnated, while other categories derived growth”. Covalact is a leading powder milk supplier for the industrial food sector, which is used by ice cream producers, pastry shops and chocolate producers. The company estimates turnover worth 16 million euros for this year, over a 15% increase against 2005.