Romanian dairy producer Albalact Alba Iulia ended the first quarter of this year with a turnover of RON 103 million (EUR 23 million), 10 percent higher compared to the same period last year, according to a company announcement.

The company posted a net income of RON 11.5 million (EUR 2.6 million) out of which RON 7.2 million was profit from extraordinary activities, such as the transfer of the logistics activities to Albalact Logistric SRL, a new firm wholly owned by Albalact, which the company intends to sell this year. The company’s profit from regular activities was RON 4.3 million (close to EUR 1 mln), up 60 percent compared to the first quarter in 2013.

Albalact wants to resume its merger with milk and cheese produces Raraul in which the company holds a 99 percent stake. Albalact bought the Raraul dairy factory back in 2008 and wanted to consolidate the two businesses in 2010 but put its plans on hold so as not to affect the eligibility of its nonrefundable SAPARD financings which were ongoing at the time.

Albalact is one of the largest dairy producers in Romania and its milk brand Zuzu has the highest sales the local fresh milk market, according to the company. The company’s main shareholders are the Ciurtin family and private equity fund RC2.

Albalatc’s main competitors on the local dairy market are French groups Danone and Lactalis (laDorna) and Dutch group FrieslandCampina which also holds the Romanian brand Napolact.

Andrei Chirileasa, andrei@romania-insider.com