Altex aims for 430 million-euro turnover in 2008

Altex, the biggest retailer of electronics and home appliances on the domestic market, forecasts turnover worth 430 million euros (excluding VAT), up more than 35% against the 317 million euros derived last year. Altex’s forecast is similar to that of rival Domo Retail, the second largest player on the market, which targets a business worth 270 million euros in 2008. “The growth will be primarily driven by plans to expand by another 9 Altex stores and 9 Media Galaxy stores, which will boost the company’s retail area,” stated Dan Ostahie (photo), the company’s chairman. The launch of 18 new stores will enable Altex to expand its retail space by 50,000 square metres, a strategy with an allocated value of 25 million euros. The 50% increase in business in 2007 motivated Altex representatives to modify this year’s estimate to 430 million euros, from the previous value of 350 million euros. Last year also saw the sale of home appliances rebound after a decline in 2006, when retailers saw their sales drop as a result of new lending regulations, which limited consumers’ access to the purchase of home appliances. As far as Altex’s profitability is concerned, the company posted a 9 million-euro EBITDA for 2007, compared with a 4 million-euro loss in 2006. “We had estimated a 2% EBITDA (7 million euros i.e.), but managed to exceed this target. The net profit, however, will be affected by the exchange rate, which also had an impact on last year’s results,” Ostahie added.