Investments doubled Carmistin Group profits in first six months 2018

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After hefty investments in new production capacities and technology, Carmistin’s Group EBITDA rose significantly in H1 2018, says a press release of the company. Carmistin Group, one of the biggest players on romanian agribusiness, owned by Paraschiv family, consists in more that 10 companies, like Avicarvil, Avicarvil Foods, Avirom, Porcellino and Pajo Holding, registred an operational profit of over 48 mil. lei (over 10 mil. euro), an over 100% growth compared with the result in the s

Iustin Paraschiv, President of Carmistin Group
ame period of last year.
According to the datas provided by the company, on the poultry meat production – Carmistin is the biggest poultry producer in Romania – EBITDA rose from 9,02 mil. lei (2 mil. euro) in first half of 2018 year to 11,2 mil. lei (2.5 mil. euro), even if the state welfare subventions downsized dramatically in the same period. Also, with the same welfare subventions reduction, on the swine production line of business, Carmistin obtained a growth of EBIDTA from 9,45 mil. lei (2.1 mil. euro) in first six months of 2017 to 16,62 mil. lei (3.5 mil. euro) in the same period of 2018.
“In poultry business, the growth of profitability comes from the expansion of our production capacities, the new farms in Targu Jiu, with a similar situation on pork meat production, where we can see the results from extending our capacities on Hunedoara farms”, says Andrei Brumaru, executive director of Carmistin Group. The young manager thinks that pork meat production will still be profitable even with the current swine fever outbreak. “We will se shortly the benefits of investing in biosecurity, investments that usually hurt profits”, explains Brumaru.
Carmistin’s Group most profitable line of business was grain and feed production. After launching new production capacities in Ramnicu Valcea and after the market success of feed packages for individual clients, EBITDA rose to 20,188 mil. lei (4.4 mil. euro) from 6,25 mil. lei (1.4 mil. euros) in the same period of the last year.
Overall, Carmistin’s EBITDA rose in the first half 2018 to 48 mil. lei (10.5 mil. euro) from 24,724 mil. lei (5.4 mil. euro) in first six months of last year.

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