“We have always had a constant growth rate of 15 percent. Although we are now in the midst of a delicate international context, we expect constant growth pace,” Raluca Brad, P&G External Relations Group Leader, told Business Standard.
Brad said that low consumption rates registered in Romania, compared to those in other emerging markets, such as Hungary or Poland, ensure that our country has a solid base for evolution and is strong in case of crisis.
“It is hard to tell what will happen in 2009, but all scenarios indicate a difficult year, and only solid brands, with loyal clients, will overcome the market selection,” Brad added.
For the 2009 fiscal year, which began on 1 July, P&G is expecting a 6 percent global organic increase in sales, according to the company’s long-term target. As far as profit goes, company estimates are pessimistic, due to high volatility of financial markets, rising prices of raw materials, and energy.
Although part of the company’s clients have moved to less expensive brands, the company announced its more expensive but innovative products will continue to be sought on the market.
P&G recently announced it will invest over $100 million (some €69 mln) in the town of Urlati in Prahova County, considering 90 percent of the production is to be exported to countries in the region, according to company officials.
“This investment indicates we are financially stable and have an ambitious plan which we will carry to an end. We are one of the few who are presently investing large amounts, when most companies are lowering their budgets,” said the P&G representative.
