Oltchim's profit comes down with bird flu

Oltchim Ramnicu Valcea chemical plant, one of the biggest companies still owned by the state, in H1 reached net income worth 2.05m euros (7.26m RON), almost 66% lower than the income posted in the corresponding period of last year. The company derived only 38.5% of the commodity output-related profit it had budgeted for H1, due to the more expensive raw materials and the losses it logged from its agri-food business. Chicken producer Avicola Babeni, one of Oltchim’s secondary assets lost 1.8m euros (6.4m RON) in H1, due to the drop in fowl prices on the domestic market, the company’s half-year report reads. Raureni canned foods factory and Suinprod Babeni (swine farm) in turn posted losses, though smaller. The company’s turnover in the first six months came to 230.4m euros (815.6m RON), up 21% from the same period of last year. The sales of the chemical plant account for around 95% in turnover, with the remaining 5% coming from Oltchim’s other operations.