Altex reports 275m-euro turnover

Altex, a distributor of electrical home appliances and IT&C products, ended last year with turnover of 275 million euros excluding VAT (around 327 million euros including VAT) and net profit standing at 7.5 million euros, stated Dan Ostahie, chairman of the Altex group of firms.

During 2004, Altex saw 36.9% higher turnover, climbing to 594.06 million RON including VAT (146.6 million euros, calculated against the average exchange rate announced by the NBR), while the net income reached 6.8 million euros.

“2005 was a difficult year for Altex but yearend results show we hit the targets we”d set.

“The company”s development was sustained in 2005 by funds worth 15 million euros, a process that will continue this year, with 25 million euros to be set aside,” Ostahie added.

This year, Altex will open four large Media Galaxy stores and 20 Altex outlets.

In 2005, the group opened 26 Altex Megastores and four Media Galaxy stores, with its territorial network covering an area of more than 60,000 square metres. At present, Altex owns more than 120 stores and eight Media Galaxy stores.

The company paid 7.5 million euros last year to acquire Cometex Suceava and earmarked another two million euros for modernisation works.

Based on the company”s data, sales in instalments (hire purchase) accounted for around 60% of the volume of Altex deals, lower in comparison with previous years, amid the higher volume of cash acquisitions.

“This tendency will be maintained in 2006, as well, when instalment sales and cash sales will come to hold an equal weight in the company”s total sales,” stated Ostahie.

According to him, the company came to hold a 30% market share at the end of last year. The company”s main rivals are Domo and Flanco.

Ostahie stated that rent expenses rose by 82% year-on-year, investments in marketing were 188% higher from 2004, while expenditure related to distribution and logistics almost doubled.

“At the same time, the freight inventory advanced by 68%, and immobilised assets by over 100%. In parallel, however, in 2005 receivables dropped by 57% as compared with 2004,” said the chairman of the Altex group of firms.

According to Finance Ministry data, at the end of 2004 Altex registered receivables standing at 24.39 million euros (calculated against the average exchange rate the NBR announced in 2004), almost 40% higher than 2003.

Another of the company”s important projects is to continue plans related to the expansion of its network in neighbouring countries.