Procter & Gamble Romania diminished its share capital by 60 billion ROL (1.8 million dollars) to 6.72 billion ROL (204,000 dollars). The decision was issued by the company’s sole shareholder, P&G Eastern Europe, which considered that the Romanian branch is capable of self-financing its operations.
“The results over the last five years point to the Romanian unit’s maturity, which is not only capable to self-finance its activities, but can also generate a positive cash flow,” stated Diana Klusch, external affairs manager with P&G Romania. “The positive cash flow generated by P&G’s operations in Romania made it possible to repay part of the capital the sole partner of the company, P&G Eastern Europe, initially subscribed. This payback is part of the company’s global liquidity management, being one of the financial practices embraced by large companies globally,” Klusch also said.
Mobile telephony operator MobiFon-Connex in its turn repaid about 40 million dollars to its shareholders this year.
P&G Romania last year logged turnover worth about 112 million dollars, over 10% higher as compared to 2001, while profit registered a 10% rise.
Klusch also said that the Romanian division held a market share of above 50% on the detergent segment, 40% on the shampoo one and 60% on the sanitary napkins and diapers segment. Its main rivals are Henkel, Colgate-Palmolive and Unilever. The company plans to increase investments in its Timisoara-based detergent plant, but this expansion plan largely depends on the signing of the free trade agreement between Romania and Serbia and Montenegro.
Recently, P&G has split its activities in Timisoara by setting up a new firm, P&G Materials Management SRL, which deals in logistics, while SC Detergenti SA kept the productive operations.
The production of detergents for the Czech Republic and former Yugoslavia was transferred to the same location, Timisoara, which functions as a distribution centre for the Balkan area.
Last year, the company entered the dishwashing detergents market for the first time, by launching the Fairy brand, which, according to estimations, has reached a market share of about 20%.
claudia.covaci@zf.ro