Business News

Paloma Reports Minimum Profit

Sladki Vrh, 29 January (STA) - Tissue maker Paloma broke even last year after three years in the red, generating a net profit of EUR 130,000. Sales revenue amounted to EUR 84.1m and earnings before taxes topped EUR 1m, the company said.

Paloma, one of the 15 companies slated for privatisation, expects a 4% growth in sales this year with net sales revenue planned at EUR 88m, a press release issued after Wednesday's session of the supervisory board reads.

The company, based at the village of Sladki Vrh near the Slovenian border with Austria, also reported having generated savings of EUR 2.2m through business restructuring.

Chairman Tadej Gosak was quoted as saying that the business result enabled investment to preserve the quality production and to adapt to the target markets.

"We expect Paloma will soon get a strategic partner that will enhance its capital and ensure a stable development in the long term," Gosak was cited in the release.

Employing 740 staff, the company sold 65,000 tonnes of hygienic tissue paper last year, 85% of which abroad. It has a 34.4% market share in Slovenia.

Despite the decline in the hygienic tissue market, Paloma's sales in Slovenia rose by 8.3%, in particular due to a 16.6% growth in December.

The company also recorded a 1.1% growth in sales in Croatia (22.1% in December), which Gosak attributed to intensive marketing activity and an improvement in distribution.

Paloma expects to increase its market shares in key strategic markets and basic lines further this year.

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