“We will revise the budget drafted in November 2008 every three months because, in current economic conditions, it is very difficult to estimate market trends and the general economic situation for a longer period of time,” TBD’s General Manager, Wael El Ghadban, told Business Standard.
As a way of adjusting to the new economic situation, the company started renegotiating all contracts as of the beginning of the year. “In some cases, we have succeeded to lower the value of certain leasing contracts for certain warehouses by 20 percent,” said El Ghadban.
Another significant cost in a distribution company is for its car fleet. At present, the firm’s fleet exceeds 350 cars. “In this case, we have carried out negotiations for the insurance policies on these cars, managing to cut this cost by 20 percent,” the company official added.
For 2008, the company targeted net sales worth RON 1,131 million (€314 mln) and an operating profit of RON 15 mln (€4.1 mln). “We met our goals in 2008. We are waiting for the audited results for confirmation. This year, I do not forecast a drop in the company’s business,” the General Manager said.
