Camera de Comert Elvetia - Romania / Chamber of Commerce Switzerland - Romania

Roche Romania to cover its €41 mln losses with the help of its mother-company

Roche Romania, local subsidiary of the Swiss Hoffman La Roche pharmaceutica producer, raised its share capital by RON 174.9 million (€41 mln) at the end of 2008, to RON 472 mln, through cash contribution from its mother-company, in order to cover debts and losses registered in the past year.

The company’s Manager, Daniel Zamonea, recently said that revenues were impacted in 2008 by the depreciation of the national currency, with losses amounting to one fifth of the company’s net sales, compared to the 16 percent initial estimate.

Zamonea expects losses to soar in 2009, to 22-24 percent, considering the forecast by the National Bank of Romania regarding a RON 4.5-4.8/€1 exchange rate and the fact that producers sell at a fixed price.

The company’s net sales rose some 10 percent year-on-year in 2008, to €116 mln. Roche Romania expects the growth rate of sales to halve in 2009, to five percent, due to the economic crisis and the depreciation of the leu.

[Source: Standard.ro, February 09, 2009]