The company also expects a slight rise in profit in 2009, but not significant year-on-year.
“We believe that Romanians will focus on cheaper, basic products next year, leading to slower growth of the industry and lower profitability,” Albalact General Manager, Traian Simion, told Business Standard. “As a result, Albalact has adjusted its development plan for 2009, so we expect a 5-10 percent increase compared to 2009,” he added.
Simion said that the dairy industry is not likely to be severely impacted by the crisis, however, because milk is a basic staple for Romanians, who are not going to eliminate this from their consumption basket.
In the first nine months of 2008, Albalact posted €38.3 million worth of business, 20 percent higher year-on-year, and earnings five times lower compared to the first three quarters in 2007, worth some €0.26 mln.
The company entered the cheese production segment this year, following the acquisition of a 7 percent stock of producer Raraul Campulung Moldovenesc.
The local dairy product market is worth some €900 million, with Friesland, Albalact, Danone, La Dorna, and Tnuva its main players.
