Romradiatoare Brasov is making a loss, after the first nine months of the year

Romradiatore Braşov (RRD), a company controlled by Transilvania Investments (TRANSI) in which the coach of the Romanian football team, Mircea Lucescu, has a 16.5% stake, reported for the first nine months of the year, total revenues of 20.2 million lei, 12% below those of the same period last year, and a loss of 0.01 million lei, compared to a profit of 0.8 million lei at the end of September 2023, according to a report of the issuer published yesterday on the website of the Bucharest Stock Exchange (BVB).

"The financial statements are influenced by the economic effects of the war in Ukraine and Asia. Considering the structure of the raw materials market with the specific problems of supply chains and the geographical distribution of our suppliers and customers, the future evolution of the company will continue to be dependent on the dynamics of these factors. Society was also influenced by the labor force crisis," the report states.

According to the company's management, Romradiatoare did not stop production for a moment, it adapted its resources so that it could fulfill customer orders, without producing in stock and blocking financial resources.

The company's turnover in the first nine months of the year amounted to 19 million lei, almost 19% below that of the same period in 2023, of which 18.6 million lei represents the sold production. On the other hand, operating expenses amounted to 19.6 million lei, down 7% compared to the first three quarters of last year.

The operating profit was 0.5 million lei, 67.5% below that of the January-September 2023 period, a result that was eroded by a loss from the financial activity of 0.5 million lei.

"For the next three months of the financial year 2024, the significant risk is related in particular to the economic uncertainty installed worldwide due to the war in Ukraine and the Sinan peninsula. The lack of raw materials and materials on the market is also worth mentioning. The management of the company continuously monitors the effects that these conflicts could generate, so that we can adopt the necessary decisions in the shortest time, so that the liquidity is not significantly affected", according to the report.

Romradiatores designs and manufactures heat exchangers and heat exchange systems (heating/cooling) for engines and other industrial and residential applications, as well as a wide range of metal parts and assembled modules. The stock market valuation of the company amounts to 22.5 million lei.

Transilvania Investments owns 76.5% of the company based in Braşov.