Business Report For The Year 2010

Hullámdobozgyár [Box Factory] Nyíregyháza Plans for 2010 were achieved to 101%. The profit plan, however, was only partly attained. One reason was that paper price increase during the year could not be passed on in full to customers due to prevailing market conditions.

Domestic sales fell short by 1,740 thousand m2. This back log could be compensated with exports above the plan. Domestic sales quantity decreased mainly to multinational and big customers. This drop was compensated with increasing turnover achieved at small and medium-sized enterprises.
Samsung deserves a mention; the company has progressed to become one of our biggest customers both in terms of turnover and volume sold. The basis of this was that production of offset laminated products was established.

Unplanned but realised exports to the Ukraine brought + 2 million m2 in sales compared to the budgeted figures. Exports to Romania and Slovakia remained below the plan, as local competitors did not pass on the paper price increase to the same extent as Dunapack, therefore customers were lost on these markets.

Analysing the industrial sectors, sales results were reached in electronics and sheet converters. Unfortunately deliveries to the fruit and vegetable sector fell further due to the lower packaging demand stemming from unfavourable weather, and because of the stricter credit limits and financing policy of Dunapack.

The Romanian company VPK, a new competitor, entered the East-Hungarian market with a very aggressive price policy, causing a loss of customers.

Raw material supply was basically good, although purchases of primary fibre containerboards sometimes faced difficulties due to extremely long delivery deadlines and actual paper shortages.  Budgeted purchasing sources were mainly used, but smaller quantities were procured from other sources supplying the same quality in case of temporary shortages. Paper widths were standardised.

During the year, the EUR price of containerboards gradually increased in several large steps. The price development was significant for both waste paper based containerboards and primary fibre based containerboards.

The total quantity of containerboards bought in 2010 grew proportionally to the increase in production. Paper stocks fluctuated during the year but decreased gradually from May. Consequently the average value was below the budgeted level.

Price of native starch, the gluing raw material for the corrugators, bought from HUNGRANA Kft. in the form of powder and water suspension in a 25-75% proportion increased considerably during the year. The EUR price increased continuously during the first three quarters, but rocketed in the last quarter (19% increase between January and December).