Boromir: Sales stagnate in the first quarter

Valcea / RO. (div) Boromir Ind. SRL, one of the leading producers in the Romanian milling and bakery industry, saw sales stagnate in the first quarter of this year against the same period of 2008 and estimates the trend will not change until yearend.

«In the first three months of this year, we got an eight percent increase in long life product sales and a ten percent drop in sales on the milling segment as a result of the falling raw material prices. Overall, though, Boromir sales stayed at the level of 2008 in the first three months of this year», said Constantin Boromiz, shareholder and CEO of Boromir Group, in a statement. He said that though wheat prices will continue to go down until this year´s harvest, the group does not take into account any price cuts.

Boromir Group ended 2008 with EBITDA worth 32,0 million RON (8,6 million EUR) and turnover worth some 548 million RON (148,8 million EUR), up 14 percent in RON from 2007, below the company´s initial projections. «I expect this year to end with the same figures as in 2008, both in terms of volume sales and turnover in RON», estimates Boromiz. Thus, he estimates Boromir Group will see a ten percent sales drop on the milling segment, a ten percent increase in retail sales, flat turnover on the fresh bakery product segment and a 30 percent growth in sales in its own store network. Boromiz says the 2009 investment budget for the entire group has not been finalised, yet, but that he plans to invest at least 500’000 EUR to expand and modernise the store network now including 40 stores.

«Sales in our own stores rose by 70 percent last year compared with 2007 and continued to rise in the first three months of this year. This is why we are considering adding a further five stores to the network this year. Investments in the opening of a new store will be operated from our own funds, revolving around 100’000 EUR per store», Boromiz said to Ziarul Financiar. Boromir today owns stores only in Valcea and Buzau counties, but is considering both acquiring and renting new spaces for expansion, according to Ziarul Financiar.

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