LEADING FORCE IN THE OFFICE FURNITURE MARKET WITH DIVERSE AND INNOVATIVE COLLABORATIONS
The vertically integrated industry Dromeas holds a leading position in the Greek office furniture market, with a multifaceted activity, as it also operates an aluminum and metal components unit. Despite the economic crisis, which affected the majority of Greek businesses, it has developed effective “defense” strategies and even plans in 2010 to create an exhibition center in Sofia, worth €2.5 million, while in October it completed modernization investments of €5 million, as emphasized by the president and CEO of the company, Mr. Athanasios Papapanagiotou, speaking to Made in Greece about Dromeas’s thirty-year journey in the business arena.
PROFITS THIS YEAR TOO
Despite fluctuations in sales and profits, he estimates that this year will close profitably for Dromeas, while he considers the European Union project, undertaken by his company and with a total budget of €30.4 million concerning office furniture supply, as a “frontline” defense against declining sales. He stresses that in the coming years, all EU services will exclusively procure their furniture from Dromeas. These are pieces of furniture, he highlights, that fully comply with EU specifications and are produced entirely at Dromeas’s facilities in the Serres Industrial Area.
Mr. Papapanagiotou underscores that, for the first time, a Greek company wins recognition against major European and American industry giants and is selected through a tender as the most reliable, high-quality, and competitive office furniture company. At the same time, he adds, “people will realize that Greece also produces high-quality and competitive office furniture.” This project, he mentions, began this July and by September 30 the value of deliveries amounted to €2.5 million. By the end of the year, he estimates another part will be delivered based on the signed agreement worth €6 million. The entire program will be completed in 2013, after a two-year extension that was granted. He believes the project’s budget acts as a kind of “antidote” to the crisis and sales decline and marks a return to profitability after the losses recorded in the first half of the current year.
FINANCIAL FIGURES
In the nine-month period, consolidated profits after tax were €153,000, compared to losses of €92,000 in the same period in 2008. EBITDA was €1.68 million, compared to €1.989 million in 2008, while pre-tax profits were €259,000, versus €235,000 in the 9-month period of 2008. Turnover in the same period was €10.479 million, compared to €13.524 million in the 9-month period of 2008, showing a 22% decrease. This 22% drop in sales is expected by the company to be reduced to 10% for the full fiscal year. Exports accounted for 31.5% of the 9-month turnover, highlighting the company’s export-oriented approach.
A MILESTONE
Mr. Papapanagiotou considers the EU project a top recognition of the efforts Dromeas has made since its founding thirty years ago to develop innovative products, technologies, and production units. He also sees it as a validation of the company’s strategic choices to vertically integrate the production process across the entire manufacturing spectrum with high-tech equipment.
Regarding the investment in Sofia, Bulgaria, he mentions that Dromeas is already exploring the purchase of a 3,000 m² plot to build a new commercial and exhibition center aimed at enhancing the operations of its local commercial subsidiary in the neighboring country. This investment is part of the company’s long-term sales boosting strategy, as Mr. Papapanagiotou emphasizes. Construction work is scheduled to begin in 2010 and be completed in 2011, when Dromeas’s new exhibition center in Sofia will be ready for operation.
Mr. Papapanagiotou also notes that Dromeas recently completed an investment of around €5 million for the modernization of machinery in all of the company’s activities: wood, aluminum, and metal components.
Nevertheless, he admits that the crisis contributed to a reduction in orders both in the furniture sector and in metal auto components, given that Dromeas collaborates with Mercedes for the production of parts for trucks of the international automotive industry, as well as with other car manufacturers.
THE COMPETITION
Still, Dromeas continues its ongoing development effort and offers opportunities for young people to showcase their talent and be rewarded, as it organizes the International Industrial Furniture Design Competition for Office and Home Furniture. In fact, those interested in participating in the 5th edition of the competition must register by January 30, 2010. Mr. Papapanagiotou explains that the goal of the competition, held every two years, is to promote the importance of industrial product design and to reward creators for the imagination and originality of their ideas.
AWARDS
Dromeas has felt the satisfaction of recognition for its efforts, as in June 2008 it received the 1st Business Excellence Award for large companies under the “Competitiveness” operational program, and the “Prevention” award for the measures and methods it uses for health and safety.
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