Braiconf posts 2m-euro net profits, bets on exports

Net profit derived by Brainconf Braila, one of Romania’s largest producers of textiles, reached more than 2 million euros in 2004, similar to the levels registered in the previous year.

Foreign contracts helped the company to preserve its net income, although the officials of Braila-based company had projected a 20% drop because of the profit tax increase from 12.5% to 25%.

The company’s turnover rose 3.1% in 2004, to 12.4 million euros, as compared to 12.03 million euros in 2003, largely due to exports.

“In 2005, we will focus on maintaining the contracts of the last several years, as well as on finding other companies to team up with. I do not think there will be any problems from this point of view because the customers we work with are not operating on the Asian market, where production costs are considerably lower,” says Anica Nisioi, general manager of Brainconf.

The Braila-based company this year will have to cope with the introduction of the hard ROL and the deregulation of textile trade, but Nisioi hopes the company will manage to push turnover up by 7 percentage points by the end of the year, an increase correlated with the rising exports.

The company, manufacturing men shirts in an outsourcing system, which accounts for 70% of turnover, and women’s wear, exports 90% of its output to various European states.

Only 10% is destined to the domestic market, where Brainconf competes with producers such as Tarnava Sighisoara, Star-Confex Bucuresti, Confectii Barlad, and Gama Sibiu.