Sladki Vrh - Paloma, a maker of hygienic paper products, reported on Tuesday sales of EUR 90.5 million for 2021, a 20% increase over the year before, but the company suffered a net loss of almost EUR 7 million.

Stevan Lomić, the new CEO appointed in April, wrote in the company's annual report that Paloma, like many other companies, is affected by the turbulences in the markets.

Paloma, which is owned by the Czech-Slovak group Eco Investment and posted a net profit of almost EUR 10 million the year before, sold a total of EUR 13 million worth of products in Slovenia last year.

Germany was the largest foreign market with EUR 18.5 million, while sales also exceeded EUR 10 million in Croatia and Slovakia.

Lomić, who has been with the company since the state sold it five years ago, said trends had started to deteriorate in the second quarter of 2021. He highlighted a rise in pulp prices, followed by a sudden increase in electricity and gas prices.

Paloma, which had 425 employees at the end of the year, 50 fewer than at the end of the previous year, noted continuing uncertainties but remains confident.

The Sladki Vrh-based company has invested into a new paper machine and has started investing in two new production lines for finished products and an automated high rack warehouse. It received an EUR 8 million foreign direct investment subsidy from the state.