Distribution and collection double Albalact profits

Albalact, one of the top players on the Romanian dairy market, derived first-half income of 1.54 million RON (420,000 euros), 107.4% up on the same period of last year.

“The company”s financial results improved mainly due to the development of its distribution and collection network. The development of the Fulga brand also made a significant contribution,” said Raul Ciurtin, the majority stakeholder in the dairy producer.

Albalact”s first-half turnover reached almost 29 million RON (7.9 million euros), 56.3% higher compared with sales in the first half of 2004.

At the end of last month, the company announced its intention to invest some 5 million euros next year in the construction of a new milk processing plant.

If the project goes ahead, Albalact will double its production capacity to a daily 200,000 litres of milk. The way the investment will be financed will be discussed at the next General Assembly of Shareholders, when the investment programme for the next two years will be approved.

The company does not rule out financing through the capital market, given the possibility of raising its share capital through an issue of new stock that will be offered for subscription to the company”s shareholders.

For this year, company representatives are forecasting a 60% increase in turnover from last year”s 44.74 million RON (11.04 million euros). stelian.vezentan@zf.ro