According to a press release from the company, earnings before interest and taxes stood at EUR 1.1m in the first quarter of the year, which compares to EUR 20,000 in the same period last year. A 4% growth in sales is planned for the year.

Since September 2013, the company has reduced maturing liabilities to suppliers by more than EUR 3.5m. But chairman Tadej Gosak was cited as saying that despite positive results and gradual reduction in liabilities Paloma was still facing the challenge of old debts and liquidity issues.

Based in the village of Sladki Vrh near the Slovenian border with Austria, Paloma broke even last year after three years in the red, generating a net profit of EUR 130,000 on EUR 84.1m in sales revenue.

Employing 740 staff, the company sold 65,000 tonnes of hygienic tissue paper last year, 85% of which abroad. It has a 34.4% market share in Slovenia.