Vrancart budgets a net profit of 1.4m euros

Paper and cardboard manufacturer Vrancart Adjud budgeted a 60-million RON turnover for this year (some 17.1 million euros for an average exchange rate of 3.5 RON/EUR), a rise of some 22% against 2005. Company sales will, however, stand at a lower level than in 2004, which was a peak year for Vrancart. The company last year saw a turnover worth 50.5 million RON (14 million euros), and in 2004, sales amounted to 68.5 million RON (about 16.9 million euros). Last year”s drop was triggered by the fact that when the contracts were signed, prices were calculated in RON, with the company losing some of its clients due to this measure. This measure, however, protects Vrancart from unfavourable developments of the exchange rate. “We are hoping to boost our business by diversifying our production. Ever since last year, we entered the market with new products, especially on the segment of toilet paper, where we are hoping to regain a 30% market share. On the cardboard market, we are expecting a predictable growth of a few percentage points,” stated Mihai Botez, general manager of Vrancart. Vrancart estimates to reach a net profit of over 5 million RON (1.43 million euros), an approximate 10% growth in euros against 2005. Last year, the company”s profit stood at 4.73 million RON (about 1.3 million euros). ZF