Vel Pitar, one of the leading producers on the local milling and bakery market, targets turnover worth 150m euros this year, as well as operating income worth around 12m euros, up 60% on 2007, in the wake of last year's investments.
"The 7.5 million-euro operating income posted last year was below our initial estimates, because the investments we made entailed costs that could not be assimilated," said George Frincu, Chairman of Vel Pitar' Board of Directors. However, in an industry where major players' profits failed to top 2 million euros two years ago, Vel Pitar's operating income in 2007 was above average.
"This year's estimates are based on the growth trend registered in the last few months of 2007, as well as on the investments completed in the third quarter, the results of which will become visible over the course of this year," explained Frincu.
"In 2007, Vel Pitar conducted investments worth 19 million euros in two new mills in the counties of Valcea and Iasi, in new baking lines and logistics.
"These investments will continue in 2008. In the first three months of the year, we will invest 9.8 million euros, while in the second quarter, the company will start a investment programme worth 5.5 million euros, which will be completed in 2009," explained George Frincu.
Last year, Vel Pitar posted turnover worth 130 million euros, up more than 58% against the 82.2 million euros derived in 2006.
The increase was the result of improved sales and of the rising prices of finished products (caused by the higher cost of raw materials). According to company representatives, over 50% of Vel Pitar's turnover was generated from the bakery segment.
"2007 was a difficult year, because of internal restructuring and market conditions. The second half of the year saw our sales increase, as well as the prices of our finished products -
