ROMANIA: In full reorganization process, Lactag returns to growth | Progresiv

Being into insolvency since 2016, Lactag dairy producer, after three months of starting the reorganization process, registered a 43% increase in turnover and a doubling of the number of processed liters of milk, announced Transilvania insolvency house (CITR ).

After two years of negative results, in 2018, as the company reorganized, the dairy business line posted a cumulative EBITDA of 1.5 million lei.

"By concentrating resources within the dairy business line, we believe we can lead the company to the next level and attract partners around Lactag who believe in the quality and strength of Romanian products", said Adriean Asan-Mic, special administrator of Lactag.

The proposed and implemented reorganization plan involves capitalizing on the meat processing and retail business line, potentiating the dairy main business, which will lead to the repositioning of Lactag among the main players of the market, according to CITR’s press release.

Lactag has been operating as a joint stock company since 1991 on the structure of the former ICIL Arges, founded in 1962. Since July 2012, the company has undergone a new management - 91% 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 filed for insolvency in 2016, with debts of over 67 million lei. Last year, the CITR sold "Pe Gustate" cold cuts factory, which Lactag owned since 2013.

From 28 of own commercial units, Lactag has reached 14 stores, located in Craiova, Filiasi, Bals and Pitesti, according to information published on the company's website. The producer ended last year with a turnover of 36.9 million lei and losses of 13.3 million lei.