Farmec Posts Over 2 Mio EUR Profit

Cluj-based cosmetics producer Farmec has reported a 32% increase in sales in the first nine months of the year amid solid growth of the domestic market and constant investments in production process optimization. Nine months through the year, the turnover reached 18 million EUR, while the profit gained 35% year-on-year from 1.7 million EUR to 2.3 million EUR. Farmec Marketing Specialist Mariana Sinitaru told Bursa: "The sales growth achieved in the first nine months of the year fives us a positive outlook for the year-end and confirms our initial expectations to exceed the milestone of 24 million EUR in turnover for 2008." The consolidation of the Gerovital brand through the acquisition of trademark rights from Gerovital Cosmetics played an important role in the aforementioned results. Assessed at 1.2 million EUR, the transaction will enable Farmec to further develop the brand Gerovital, both by creating new products and by expanding to new markets. The first nine months of the year were characterized by intensive efforts to revitalize the product portfolio with new product ranges such as Farmec for facial skin and body skin care, the Gerovital Plant Treatment for hair and the range of sun block lotions Gerovital Plant Sun. The evolution of the product portfolio follows the process of retooling the production units, which started in 2006 and led to a decrease in cost and increase in quality. The process entailed investments of 3 million EUR in the first nine months and was focused on modernizing production lines with equipment aligned to EU technological and environmental standards. The technological upgrade enabled the company to land several contracts with important multinational players and also get a better grip on certain retail markets.