A budget built on pessimistic hypothesis, improving work capital especially by cutting outstanding debts or by the decline of exposure in foreign currency by dropping debt in foreign currency are only few of the measures adopted by players in Romanian FMCG market, in the context of leu’s meltdown.
Tatoiu: Strategies implemented since late last year turns us into a bystander that watches the show
If national currency reaches 4lei/euro, Monica Tatoiu, managing director at Cosmetics Oriflame Romania said the company’s budget was framed for this fall’s shock even since November 2007. The forecasted currency exchange rate was 3.65lei/euro.
“We framed the budget blueprint for 2007 starting from pessimistic premises. Banks’ reports from early this year provided pessimistic forecasts for foreign currency exchange rate. I am a prudent person, and I have always chosen solutions with the minimum risk. Keeping savings in a bank is a minimum risk, nowadays,” Monica Tatoiu stated for Wall-Street.
Tatoiu added that the strategies implemented in early stages confer to company the “comfortable role of bystander at the show”.
“Now we are setting up strategies for spring, when we forecast a normal path for Romanian economy, yet with only one condition. Romanian Budget for 2008 must subject to vote no later than November 30, for the election donations to be assumed by those who proposed them,” Monica Tatoiu said in the interview.
As for national currency’s trend, Oriflame Romania’s representative sees a 3.7lei/euro average exchange rate for next year.
On a cosmetic market estimated at 800 million euros, Oriflame Romania, local subsidiary of the Swedish cosmetic player Oriflame registered, according to 2007 annual earning report 3.5 million euros net revenue and 31.9 million euros turnover.
The company’s portfolio includes 650 makeup, body
