Decora: second quarter set to be an improvement on first

2010-07-05

The senior management of the company Decora estimates that the results for Q2 2010 will certainly fall below those it achieved during the corresponding period of last year, but at the same time they will surpass those recorded in Q1 this year, according to Parkiet.
The company expects its turnover in the second half of this year to be higher than 12 months' previously and remains upbeat about sales of its products both in Poland and abroad, including in Italy, Germany and France. The company's authorities are targeting a sales net margin of around 10% next year. In the first quarter of 2010 its margin was a mere 1.3%. Recently the company broadened its assortment to include new products, such as terrace boards, laminated flooring and layer flooring. Decora's senior management is hoping that sales of these products will boost the company's revenues by approximately PLN 25m (€6.1m) in 2010.
The company's board is currently focusing its energies on improving efficiency in the companies making up the group. It intends to streamline employment by around 15%, and a planned distribution centre in Hungary is also expected to yield genuine benefits. The centre will be responsible for servicing the Hungarian market and provide a platform for expanding the Romanian, Bulgarian and Croatian markets. This year the company has no plans for major investments and next year is not ruling out the idea of enlarging its manufacturing facility in Belarus. The project will cost roughly PLN 10m (€2.4m).
In the first quarter of 2010 the company generated revenues of PLN 55.8m (€13.6m) and posted a net profit of PLN 661,000 (€160,827), as compared with PLN 69.4m (€16.9m) and PLN 11.4m (€2.8m), respectively, in Q2 2009.

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