Depreciation of the leu and delay in new factory opening lead to drop in Albalact profit

In the first quarter of 2008, Albalact’s total income rose to RON 47.7 mln (€13.25 mln), 15 percent higher year-on-year. Income from sales increased by 25 percent compared to Q1 2007.

“Gross profit posted in the first months of this year, of some RON 1 million (€280,000), has not met the level posted in the same period in 2007. But situations cannot be compared. From an operational point of view, costs continued to be very high at the beginning of 2008, especially since there was a time when both factories were operating, until the old one closed,” said General Manager Traian Simion.

Another strategic objective reached by Albalact in 2007 was an increase in the quantity of milk collected from dairy farms, and a drop in milk acquired from individual producers. In 2007 the company collected 62 percent more milk than the year before.

Albalact is targeting a turnover in 2008 of €60 million and a net profit of €3 mln.