August 17 (SeeNews) - Romanian glass maker Stirom [BSE:STIB] said on Thursday its net profit grew 77% on the year in the first half of 2017 to 20.8 million lei ($5.3 million/4.5 million euro) on the back of cost cuts and increased economic efficiency.
Stirom's first-half turnover decreased by an annual 7.5% to 128 million lei, Stirom said in a statement filed with the Bucharest Stock Exchange, BVB.
The company attributed the decline to the fact that it has not sold tableware glass products since July 2016. Another reason is that it has not concluded any contracts for glass packaging finished goods with a big client during the January-May period.
Stirom, however, added that it did contract a big client after this date.
Operating expenses decreased 14% on the year in the first half of 2017 to 105.5 million lei, as the addition of technologically advanced equipment led to energy savings, Stirom said.
In October 2016, Stirom's Greek parent Yioula entered into an agreement to sell the company to Portuguese group BA Vidro for an undisclosed sum.
Yioula sold all its glass container business, which also includes Drujba Glassworks in Bulgaria, but excludes the glass tableware and Ukrainian glass container businesses.
Stirom was founded in 1968 in Romania's capital Bucharest under the name of Glass Articles Factory Bucharest. In 1990, it became joint stock company under the name of Stirom SA, and in 1995 became majority private company. In early 2003, Stirom SA was taken over by Yioula Glassworks.
The Romanian company's net profit fell 26% to 16.3 million lei last year, as turnover fell 7% to 251 million lei, according to data posted on the finance ministry website.
Stirom was trading up 1.13% at 17.9 lei by 0952 CET on Thursday on the BVB.
BA Vidro was founded in 1912 and employs 2,400 in eight factories in Spain, Poland and Germany, where it makes 6 billion glass containers per year.
(1 euro = 4.5816 Romanian lei)