Caroli Returns To Profit After Two Years Of Losses

04.11.2013 By Gabriel Razi

Romanian cold cuts producer Caroli Foods Group stepped into the black in 2012 after two years of losses.

Caroli, a joint venture between Lebanese family El-Solh and Campofrio, accumulated more than EUR4.7 million losses in 2010 and 2011. It ended last year with a profit of EUR26,000 according to a Campofrio report, although it had previously budgeted EUR1.4 million in net profit.

“The results were slightly lower than initial estimates because of the difficult economy, which directly influenced the company’s business. The increase in raw material prices, which peaked in 2012 had a significant impact on the business,” explained Khaled El Solh, chief executive officer of Caroli Foods Group.

On a market where consumer spending did not show clear signs of a rebound, Caroli Foods ended 2012 with EUR78 million revenue, slightly up on 2011. Last year’s revenue was 10% or EUR9 million lower than initially budgeted, which makes 2012 its second year with worse than estimated performance.

Gross consolidated revenue stood at EUR98.2 million in 2011, missing the EUR120 million target.

“We expect consolidated revenue of EUR85 million for the group in 2013 and EUR6.2 million EBITDA,” Khaled El Solh said.

The recent horsemeat affair that brought food safety standards into the spotlight and caused doubts about the meat products on shelves of local stores shook the meat processing market. This and the economic growth forecasts not indicating any significant increases made a number of executives in the industry announce prudent strategies by keeping costs under control and containing aggressive expansion.

“Our company’s main goal in 2013 is to consolidate market share and, at the same time, improve all efficiency and productivity indicators to boost profitability,” Khaled El Solh said.

(English version by Loredana Fratila-Cristescu)