Lactag, the largest milk processor in Romania, recorded a net turnover of RON 59 million in 2018, up 36 percent compared to 2017. The Romanian company, now under the judicial administration of CITR, registered an operating profit of RON 800,000.
“We are delighted that the financial restructuring strategy is starting to pay off and Lactag’s figures are improving as we expected for the first reorganization trimesters. We will continue to streamline the dairy business line – the company’s main source of revenue – and limit losses by implementing the plan’s provisions so as to generate enough surplus to meet the projections,” said Aurel Podariu, CITR Senior Partner.
At the end of 2018, the main milk processing business, accounting for 59 percent of the company’s net turnover, grew 39 percent over the same period last year, generating an operating profit of approximately RON 800,000.
“Last year we managed to achieve a consistent growth in turnover and a consolidation of our position in the market, managing to close the financial year with a positive operating result. For the next period, we are proposing a sustainable and profitable growth of our core business and together with CITR team specialists to successfully implement the reorganization plan so that we can find the best financial solutions for both creditors and Lactag shareholders,” said Adriean Asan-Mic, Special Manager Lactag.
CITR and Lactag intend to continue the restructuring of those activities that do not contribute to the development of the company and the capitalization of the business lines that are not in the company’s future plans. These include the “Pe Gustate” meat processing plant near Craiova and the chain of stores, which are currently not used to their true potential.
The meat processing factory “Pe Gustate” has a capacity of 20 tons per day. Built in 2013, the plant is modernly equipped to the highest European standards in the industry.
After capitalizing on the meat processing business line and the chain of stores, which will result in payment of part of the receivables provided in the reorganization plan, CITR and Lactag estimate a decrease in the total turnover to about RON 35 million in 2019, but an increase in operating profit of the milk processing line of 25 percent in the fourth quarter of reorganization.
The public auction for the processing of the meat processing factory “Pe Gustate” near Craiova will take place on April 4, 2019, and those interested in the investment are invited to submit the documentation no later than 24 hours prior to the auction, at the CITR headquarters.
Lactag has been operating as a joint stock company since 1991 on the structure of former ICIL Argeş, founded in 1962. Since July 2012, the company has undergone a new management – 91 percent of the shares were taken over by Robert Iriza and Adriean Asan-Mic. After a period of growth and listing on the stock exchange, the company asked for insolvency proceedings in 2016 under the CITR’s judicial administration.