Domo sees turnover and profit growth

Domo, the chain of stores selling electronic and household appliances, estimates 2003 turnover to reach 30 million euros, up more than 30% since last year, when it amounted to 22 million euros.
“In terms of profit, we target a 4% net profit rate for 2003, as compared to the 3% we posted last year,” said Lorand Szarvadi, general manager of Interexpo Ltd., owner of the Domo network.
Interexpo Ltd. sees 58 million euros in turnover this year, as Domo accounts for half of its operations. Distribution of electronic and household appliances takes up the other half.
According to Szarvadi, 2002 was a very good year for the market of household and electronic products and particularly for Interexpo Ltd.
“Interexpo, and implicitly the Domo chain have had an excellent year, as turnover climbed to 45 million euros, up from the 28 million we logged in 2001,” said Lorand Szarvadi. Last June, company officials predicted sales worth 20 million euros for the Domo stores and 40 million dollars for Interexpo.
The sales increase will slow down a bit this year, according to the Interexpo official. “We are taking into account a 30% increase, meaning 56 million-euro turnover, with at least 30 million euros coming from the retail operations, through Domo, and the rest from distribution,” the general manager also said.
Szarvadi is confident the company’s profitability will also grow this year. “In terms of profit, we target a 4% net profit rate for 2003, as compared to the 3% we posted last year. In our opinion, profitability cannot rise above 4% at the moment, given the low margins applied in this field,” the Interexpo official added.
The company will strive to improve its banking credit system for natural persons and its promotion policy. Last fall, Domo and Raiffeisen Bank worked out a loan system, which is now estimated to account for half of the 2003 sales.