The net income of chocolate maker Kandia-Excelent fell 40% last year compared with 2003 down to 1.8 million euros. The drop in income was due to increased costs for raw materials and other supplies. In 2003, Excelent’s net income was in the region of 3 million euros, according to corporate reports.
Turnover in 2004 reached 1,195bn ROL (around 30 million euros), up from 968bn ROL (25.8 million euros). This just managed to exceed the goal set earlier in the year of 29 million euros.
The financial results were affected by the merger by absorption last year with the Timisoara chocolate maker Kandia. According to Finance Ministry data, Kandia made a 5.6 million euro turnover in 2003, with losses of some 2bn ROL (50,000 euros).
Operating income last year was 68bn ROL (1.5 million euros), compared with 135bn ROL the year before (3.6 million euros). The drop, however, was compensated for by financial profits, which doubled in 2004 to 33bn ROL from 13bn ROL in 2003.
Kandia-Excelent makes the Kandia, Excelenta and Laura chocolate brands; Still and Concerto chocolates; and Rom and Papi chocolate bars. It also makes the Magura long-life pastry products as well as caramels, nougat and low sugar sweets.
Kandia-Excelent’s main competitors are Kraft Foods Romania (Poiana, Milka, Toblerone, Africana), Heidi Chocolats Suisse (Heidi) and Supreme Chocolats (Primola, Novatini). Chocolate consumption in Romania is estimated at 110-120 million euros, much lower per person than the western European average.
As soon as the merger with Kandia was complete, Excelent closed the Kandia chocolate factory in Timisoara, transferring the production facilities to Bucharest. According to Sorin Alexandrescu, Kandia-Excelent’s general manager, the company increased its chocolate making capacity by 30-40% last year following the investment of around 5 million euros. This year’s investment is worth more than 10 million euros.
georgiana.stavarache@zf.ro