Baumix reports RON 770,000 profit

Local construction materials producer Baumix has announced a RON 770,000 (around EUR 179,000) profit for the first nine months of the year, and estimates it will close 2010 with a net profit of around RON 400,000 (EUR 93,000). “This year brought us a managerial challenge, as it was probably the most difficult in the company’s history. We had to deal with a 30 percent drop in the market compared to 2009, a competitive landscape characterized by dumping practices (…) and a lack of major property developments,” said Augustin Rusu, general director of Baumix.

This year the firm has expanded its partnerships with DIY retailers, made the operational costs of the production process more efficient by relocating its plant in Gherla to Ploiesti, and made investments in upgrading its production equipment. The company estimates a turnover of RON 30.7 million (EUR 7.1 million) for this year, down 15 percent y-o-y, and a growing EBIDTA of 25 percent y-o-y, standing for 9 percent of the 2010 turnover. Next year it is aiming to increase its turnover to reach the 2009 level of RON 36 million (EUR 8.3 million), the main focus being on maintaining the increased profitability, optimizing the operational costs, national expansion and diversifying distribution channels both in retail and key accounts.

Baumix is one of the largest local producers of construction materials. The company owns six production lines in Ploiesti with a production capacity of 35,000 tons monthly.