Pan Group reports results behind the estimates

Pan Group Craiova, one of the top ten manufacturers operating in the milling and bakery industry estimates its turnover will increase by 10% to 25.3 million euros this year.
Pan Group derived a turnover worth 23 million euros and a profit standing at 1 million euros in 2006, results that were behind the initial estimates of 25 million euros.
“The turnover did not have the value originally estimated because of the reorganisation of the distribution system through the co-optation of approximately 40 new distributors. Other factors contributing to the estimated turnover not being achieved included the increase in our sales team, the regulations regarding wheat and sugar stocks (which included sugary products) introduced in December, and also the massive decline in the volume of bulk products, especially sweet biscuits,” said Florin Busuioc, the company’s commercial manager.
The results derived by PanGroup were still higher in value compared with 2005 when the Craiova-based company reported a turnover worth 22.5 million euros and a profit standing at 950,000 euros, according to data posted on the Finance Ministry’s official website.
Florin Busuioc said the company’s stores derived a turnover worth 17.4 million RON (4.8 million euros) in 2005.
PanGroup has recently decided to set up a new company in Craiova, namely Neris Food, which will operate in the FMCG industry.
“Neris Food is a project that Pan Group will develop throughout 2007. The investments made so far in this company are minimal, aimed at the establishment of the company and the compliance with the legal operating norms,” explained Florin Busuioc.
PanGroup owns a chain of 43 stores, with a total sales area of 3,500 square metres.
“The stores’ location was chosen especially to cover all areas of the city including the outskirts,” explained Busuioc. Pan Group is currently selling over 5,000 products. The Dolj-based company intends to complete the modernisation of its store network by 2007.