Significant rise in profits for Rossmann in 1999

French corrugated board manufacturer Rossmann SA in Neuilly-sur-Seine (near Paris) confirmed that validity of its internal diversification strategy. The company achieved a 5.8% rise in turnover to DM 713 M. The average growth rate in the European market was between 2-3%. Rossmann SA achieved more than half of turnover abroad. The consolidated operating result increased by around DM 17 M to DM 48.6 M in 1999 whereas net profits surged to DM 20 M. Favourable results are attributed to production and processing facilities in Africa and Romania. Rossmann acquired the paper complex Ambro in Rumania 4 years ago including large forest ownership. Rossmann is currently completing an investment programme worth DM 96.5 M in Eastern Europe which will significantly increase the future paper manufacture capacity. Ambro is expected to generate 15% of group turnover in 2000. Rossmann predicts a significant rise in turnover in 2000 mainly due to higher sales prices. Group profits are forecast to rise by 10%. At the beginning of 2000 Rossmann agreed with Austrian Bauernfeind Group to form a joint venture named Roba. The companies expect major synergy effects in the distribution segment. Corrugated board remains under price pressure.