Euro appreciation boosts Den Braven profits

The local branch of the Holland-based Den Braven Group, which operates on the polyurethane foam and professional insulator market made about 300,000 euros in gross profit in the first half, 10 times the one last year. The profitability gain of the local business of the Dutch operator is the outcome of a circumstantial factor – i.e. the surge of the European currency in the first part of the year and of an organic growth of the company, based on direct sales. “We had significant stocks at the end of last year, as our warehouses were full in December. Our imports from other factories of the group especially from Holland and Germany were made when the euro exchange rate was lower, i.e. 33,000-34,000 ROL, while the sales were made when the euro had reached 36,000-37,000 ROL. On the other hand, the first half of the year witnessed a break in the balance of direct/indirect sales, with direct sales prevailing,” Adrian State, Den Braven Romania general manager told Ziarul Financiar. The number of Den Braven employees went up from 60 to 86 throughout January-June, as the company hired more sales representatives and drivers. ZF