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Medicinal herbs take off: PLAFAR SA earned profit for the first time in 16 years

Author: Dragos Serban

Published on: 15 Sep. 2011 in: Vegetable

medicinal-herbs-take-off-plafar-sa-earned-profit-for-the-first-time-in-16-years

National company Plafar registered profit for the first time in 16 years. Plafar SA, owned by Ministry of Economy, went bankrupt two years ago. However, Plafar earned 265,563 lei in the first half of 2011.

Tags: plafarherbsherb productionorganic herbs

The company went bankrupt on March 16, 2009, after its main shareholder, Ministry of Economy, agreed that Plafar was insolvent and soon Assistance Insolv SPRL was appointed judicial administrator. Representatives of Assistance Insolv SPRL said recently that Plafar could exit insolvency by the end of this year, according to NewsIn.

A second chance for Plafar

“Insolvency procedure could be closed and Plafar could return to economic circuit if the forth installment will be paid by December 31, 2011. Furthermore, we will mark a premiere if this will happen: the first restructuring plan of successfully implemented by repaying all categories of claims (budget related, guarantee claims, salaries related and unsecured ones)” said Remus Borza, representative of Assistance Insolv SPRL, according to NewsIn.

Plafar reported a 7,337,433 lei loss for 2008, and a year later these losses were already reduced to 2,882,746 lei, and to 611,779 lei in 2010. In the same time, company’s turnover rose from 3,439,374 lei in 2009 to 6,120,064 in 2010. Plafar reported a 4,113,430 turnover for the first half of this year.

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The company’s results are due to restructuring the personnel spending, departments’ directors and indirect spending by shutting down unprofitable subsidiaries (Craiova, Braila and Timisoara), as well as specializing Cluj and Brasov subsidiaries in different product ranges. Furthermore, the entire product portfolio was rebranded and both production units were retooled and production assemblies were rehabilitated. Besides this, some new products were launched (27 new premium teas and 23 sirups)

Privatisation is looming

Plafar SA is planned to be privatized from January 1, 2012, Ministry of Economy, Trade and Business Environment intents to sell its 51% participation in the company. Plafar is the biggest tea and natural syrups producer in Romania with a portfolio of 230 products. The company has less than 100 employees and subsidiaries in Bucharest, Brasov and Cluj.

Approximately 21,000 companies go bankrupt, annually and less than 1% of them are saved. Plafar salvation would be a happy event.

Author: Dragos Serban

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