Interval for Cashing In Client Receivables Has a 30% Increase
Sfantu-Gheorghe -based corrugated cardboard packaging producer Dunapack Rambox, which is part of Prinzhorn holding in Austria, with clients such as NestleÅ½, Kraft, Heineken or Angeli, closed this year's first semester with a turnover of almost 8,3 mil. Euros, a drop of 21% from last year's same period.
"The main contributing reason is an approximately 15% drop in sale prices. The production level of Dunapack Romania in the first semester of this year holds at a level almost comparable to the one in the same period of last year" said Vlad Vasiliu, managing director of Dunapack Romania, which in the first semester this year had a production of 14.319 tonnes, 6.6% less compared to last year.
Cardboard market dropped 17%
The company plans to close this gap by the end of this year and to surpass last year's volume, on a corrugated cardboard market that has shrunk by 17% since last year, according to Dunapack Rambox estimates.
The corrugated cardboard producer renewed and prolonged contracts with clients such as NestleÅ½, Kraft, Unilever, Doctor Oetker, Heineken, Orkla, Angeli or Chipita. More so, the company began its collaboration with other clients, among which, Danone.
"Export activity on the Republic of Moldova market as well, registered a raise since first semester of last year and by the end of this year we estimate an 18% advance compared to last year" he mentioned.
Vlad Vasiliu also said that even though client receipts meet sales evolution, the only difference is the 30% increase, since the same period last year, in the interval during which account receivables are cashed in.
Cutbacks affect the number of employees
Other measures affect the number of employees in the company. At the end of this year's first semester Dunapack Rambox had 159 employees, compared to 173 at the end of 2008.
"This means an 8,1% cutback in employee number. By the end of this year, the number of employees will be further reduced and we estimate that this year will conclude with 147 employees. Our primary objective is an increase in productivity therefore we must align the number of employees to the group's standards, hence the cutbacks. Furthermore, we have externalized certain activities, such as transport and logistics" he said.
Vlad Vasiliu estimates that in the second semester, the corrugated cardboard market will continue to shrink and by the end of this year the value of the contraction will raise to almost 30% from last year.
Number of employees: 159
2008 turnover: 22 mil. Euros
6 months turnover: 8,3 mil. Euros
Clients: Danone, Nestle, Kraft, Unilever, Doctor Oetker, Heineken, Orkla, Angeli, Chipita