Cosmetics industry up 15 percent in H1

Cosmetics industry up 15 percent in H1

The main players locally are Avon, Oriflame, Amway, Procter&Gamble and L’Oreal, on a market expected to amount to €800 million this year.

Cosmetics importer Sarantis Romania, the local subsidiary of Greek Sarantis company, posted €25 million in turnover for the first seven months of 2008, 15 percent higher year-on-year.

Sarantis Romania is one of the largest companies on the local cosmetics imports market.

“If calculations are made in the national currency, the growth in lei is 21 percent. If we compare the sum to the targeted budget, we are some 12 percent below the planned figures. This is due to leu depreciation, on one hand, and on the other hand, we were impacted by the delayed launch of certain product series,” the company’s General Manager, Constantin Tudorache, told Business Standard.

Tudorache said the company’s profit rose 29 percent year-on-year. As far as earnings for the entire 2008 are concerned, the company expects a 32 percent increase, close to initial estimates.

Sarantis Romania plans to increase sales in 2009 and has a strategy based on investments in marketing. “To increase sales, we will invest some €3 million in marketing operations this year. They will help us increase market share,” he added.

Another major player on the market, Amway Romania, posted 18 percent increase in turnover in H1, due to launching new products on the luxury cosmetics segment. The largest local producer, Farmec Cluj, estimates business growth up to 20 percent this year.