Elvila, one of the leading furniture producers in Romania, last year posted 1,115bn ROL ($33.7 million) turnover, about five percent higher than the 2001 sales in dollars. The company’s profit amounted to 70bn ROL ($2.1 million) in 2002, up 16% since 2001.
“Elvila is a cautious company, and does not take chances to get explosive growth on a very difficult market,” Viorel Catarama, CEO and Chairman of the Board, told Ziarul Financiar.
The furniture makers in Romania are partly affected by the decline of the European Union market (which absorbs about three quarters of the domestic production), as well as by the sluggish growth of the domestic market.
Still, Elvila estimates to see turnover increase by 25% in ROL, that is ten percent higher than the projected inflation growth, while profits should increase by more than 40% in ROL.
The main profit increase should be spurred by the productivity improvement as a result of investments in equipment.
Elvila exported nearly 80% of its output last year, with the European Union as the main export destination. The export share in the company’s turnover went up since 2001, when it reached only 75%. “Elvila’s biggest clients are Ikea (Sweden), Boss and Porta (Germany), Seats&Sofas (Holland) furniture retail chains, as well as two German wholesalers, A&D and AMV,” Catarama specified.
On the other hand, the furniture maker is planning to develop its retail business in Romania. “We will build shopping centres in Constanta, Iasi and Ploiesti this year, each of these centres set to cost about $1 million,” Elvila chairman said.
The company is also about to open a furniture store in Alba Iulia this June. The 2004 plans include building shopping centres in Craiova, Oradea and Timisoara.
The first Elvila company, which dealt in furniture trade was set up by Catarama in 1990. He has bought several factories in the course of time, so that Elvila has become the largest company in the furniture industry, in terms of number of employees and turnover, according to the Top Companies in Romania, put together by the Chamber of Commerce.
“Elvila has invested $13 million over the last three years, while investments made until 1999 amounted to $27 million, so that total investments reach $40 million,” Catarama added.
Elvila is planning to invest some $5 million this year.




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