P&G reports 46% profit slump in Romanian operations

Procter&Gamble’s operations in Romanian FMCG market reached 1.96 billion lei (531 million euros) last year, down 4.1% from 553.2 million euros in 2007.

The profit reported by P&G via its four divisions in Romania sank 46% last year when expressed in euros down to 23.7 million euros (87.5 million lei).

The financial results of the four divisions for 2008 confirmed the market’s statute of maturity, as it was preceded by a constant three-year growth.

Procter & Gamble Marketing, division that manages the US-based FMCG producer’s operations in Romania and seven other countries in the region recorded last year a turnover of 449.6 million lei (122 million euros) and a net profit of 68.4 million lei (18.5 million euros), according to own statements.

Procter & Gamble Distribution, the retail division of fast moving consumer goods maker P&G in Romania posted a turnover of 1.16 billion lei (315.4 million euros), up 5% from a year earlier. The distribution division booked gross profit of 20.2 million lei (5.5 million euros) last year, roughly double from a prior year.

Detergenti S.A, the detergents and bleaches division located in Timisoara posted turnover of 42 million lei (11.4 million euros) and net profit of 2 million lei (565,356 euros).

Procter & Gamble Materials Management, raw material supplier for Detergenti S.A recorded a turnover of 307.7 million lei (83.5 million euros) and 3.27 million lei (888,177 euros) loss.

“The year 2008 was highly engaging for Procter & Gamble Romania. Over the past few years, P&G recorded an organic growth in Romanian market, on the back of our consumer-oriented development strategy and our innovative, diversified, well-known and highly appreciated product range in Romania”, said the company.

P&G started in February this year the construction works of a shampoo and hair care products production facility in Urlati (Prahova). The first stage of the project will create 150 jobs and required a 50-mln dollar investment, P&G aiming at turning the Urlati-based facility in a key-location in the Balkans.

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