ROMANIA: Doncafé producer, 17.6% decline of sales in Q1 | Progresiv

Strauss Romania, the producer of Doncafé and Amigo brands, reported in the first quarter sales of 44.88 million lei (51 million shekels), down by 17.6% over the same period of last year, according to data published in the company’s financial report.

"The result was influenced by the negative conversion differences due to the depreciation of the leu, as well as the decrease in prices. Sales in shekels on the Romanian market reported a 10% decline in the first three months of the year compared to the same period of 2016. The decrease is mainly due to the growing competition that has led to a price reduction. Thus, compared to the first quarter of 2016, sales in shekels fell by 11 million", according to Strauss’ report.

At group level, the manufacturer reported sales of 961 million shekels in the first quarter, up by 23.3% from the first three months of 2016. Performance is based on increased volumes traded in most of the countries where the manufacturer is present, but also the increase in the selling price.

The value in lei of the financial indicators was calculated at the rate of 1 shekel = 0.880 lei.

Israeli Group Strauss Coffee has been present in Romania since 1994 and has a production unit in Bucharest. The manufacturer owns Doncafé, Fort and Amigo brands, the latter being acquired in 2014 from the Brazilian company CIA Iguacu De Café Soluvel for 20 million dollars. The company ended 2016 with business of 241 million lei, down by 6% from the previous year, the first decreases reported by the producer after a period of about two years of consecutive increases.