The Slovenia Times

Sava Group Posts EUR 11.5M January-September Net Loss


The group's earnings before interest and taxes (EBIT) in the period amounted to EUR 9.2m, up 44% over the same period last year and 3.3% higher considering the comparable group composition in 2011.

According to the report published on the website of the Ljubljana Stock Exchange, the group continues to implement the restructuring strategy, with a major focus on divestment.

"The major achievement of this financial year is a successful and efficient divestment of the assets of Sava," the management wrote.

In March, the group sold a 14.56% share in spa operator Terme Maribor, in June it sold Investicijsko podjetje (formerly Sava IP) and at the end of October it signed a contract for selling the entire rubber manufacturing division.

The sale of the energy management companies is in progress and is expected to be finalised before the end of this year, the company said in the report.

The group expects the sale of its rubber manufacturing segment to substantially improve the operating results, and combined with the effects of other divestment, reduce the debt with the banking sector by about EUR 100m.

"This will provide an extra platform for making an arrangement with the banks as to the reprogramming of financial liabilities and enable further implementation of Sava's restructuring strategy," the company said.

The majority of the EUR 149.4m in sales revenues, up 1% compared to last year, was generated by the group rubber manufacturing segment, which generated 64% of group revenues and employs almost 2,200 people.

After the restructuring is complete, Sava group will remain focused largely on banking and tourism. The latter generated EUR 50.2m in revenue in the January-September period.


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