March 20 2008, 08:17

Sunway revenues dramatically declined in 2007

Sunway Group holding, one of three leaders among Russian fruit & vegetable importers, generated RUR 3.7 mln. of profit according to the conclusions of 2007, the press-release of the company says. So, the company's revenue has declined almost 94% comparing to 2006 when Sunway managed to generate RUR 41.9 mln. of profit.

To the opinion of the analysts of CIS fruit & vegetable business periodical "Fruit-Inform" weekly, the decrease of the net profit in 2007 reflects the considerably intensified competition on Russian market of fresh fruits and vegetables and the complicated situation with the supplies of bananas and citrus fruits in the end of the previous year.

We'd like to remind that Sunway company owns banana plantations in Ecuador where the serious problems with the yield, the banana quality and the opportunity to deliver the shipments have been observed since past fall. The "citrus" season turned out to be complicated too. As a consequence of the poor harvest in the major countries-producers the prices for tangerines, oranges and especially lemons were much higher than usually. These factors resulted in the dramatically declined rates of citrus fruits consumption in Russia, and were sure to affect the importers' businesses.