"AdePlast" sees growth in July

Revenues of construction finishings maker "AdePlast" increased 6% YOY at the end of July 2009.

The owner of the company, Marcel Bărbuţ, said that "AdePlast" achieved this growth "without resorting to marketing gimmicks or unrealistic 10-20% discounts". Furthermore, Mr. Bărbuţ expressed his confidence that his company will successfully maintain its top positions among producers of mortar, in particular due to the company"s sales volume for the first semester.

The company"s turnover for the first seven months of this year dropped 9% YOY. "Every month we"re compensating for the contractions in autumn and spring. We are living in troubled times, as business gets increasingly difficult for small companies", Marcel Bărbuţ said. He credits customer "migration" from small to large producers for his company"s growth, even as most producers see their market share drop by at least 30%.

"Customers that would pay too much in 2007 and in the beginning of 2008 completely shifted gears in 2009, when they would instead buy at the lowest price without paying attention to quality. Starting in May this year, consumer behavior changed, because low prices mean quality issues, low workability and execution efficiency", the owner of the company said. Mr. Bărbuţ went on to say that "current consumer behavior tends to look for products that strike the right balance between quality and price, and we have managed to take customers away from our competition by means of the quality and price of our products".

"AdePlast" plans to expand its product range

The company"s plans for August and September include an expansion of the dry products range, by incorporating several materials in for which there is increased demand in the market. These include mortar for mechanized application used in consolidating buildings affected by earthquakes and hydroisolating mortar for pools, water towers or historical buildings.

Factors that contributed to the growth of revenues in this period include decorating paint, with the company to launch a new brand this year on this segment.

According to Mr. Bărbuş, in the first semester of 2009, "AdePlast" successfully entered new foreign markets, such as Hungary, and is currently negotiating with several companies in Ukraine and Bulgaria. "AdePlast" has nearly doubled its product range and output capacity YOY. "Given these factors, I do not see why "AdePlast" would not post higher profits over 2008", the owner of the company concluded.