The Slovenia Times

Gorenje Group Posts EUR 6.4M Net Loss in Nine Months


Nine-month sales revenue reached EUR 929.5m, which is 2.7% less than in the same period last year, the company said in a press release on Friday.

Group earnings before income tax, depreciation and amortisation (EBITDA) topped EUR 55m, down 17% year-on year, while operating profit (EBIT) dropped by 34.8% to EUR 15.2m.

The company attributed the result to the deterioration of the situation on key markets in the first two months of the third quarter. An important factor was also higher costs, particularity of transport and of the move of production from Finland to the Czech republic.

By boosting sales and introducing new products, the group managed to increase its orders in September and the trend continued at the beginning of the final quarter. In October and November, Gorenje received more orders from its most profitable markets Ukraine, Slovenia, Russia, the Czech Republic, Croatia and Serbia, the company said.

The effects of optimisation of costs, disinvestment and the move of production are expected to show in the final quarter, which is why Gorenje plans to finish the year with profit.

"Business is going in the right direction in the final quarter. The management therefore assesses that the good sales from last months and cost cutting measures will help us end the year with profit," CEO Franjo Bobinac said


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