The CEO of Nowa Gala stated in an interview with PAP on Friday that the double-digit net profit in 2009 is possible. After very weak April when capacity utilization fell to 60-70%, July and August have been much better, which gives good prospects for 3Q09. He stated that sales to DIY markets steadily increases and the demand from commercial projects is stable. According to him there is no price war on the Polish market but the demand shifts to cheaper products and the market players increase marketing spending. Nowa Gala plans higher marketing budget for 2010.
Our current net profit forecast of PLN 12.5m for 2009 needs to be revised downwards following weak 2Q09 results but is likely to remain in the double-digit territory given better prospects for seasonally strong 3Q09.