The Slovenia Times

Gorenje Reports Net Profit for 9 Months


Operating profit at the Velenje-based group amounted to 32.7m through the first three quarters, a jump of 38% on the year before, Gorenje said in an earnings release on Friday.

The group also reduced its net debt by nearly 14% in the nine months to EUR 310m. It expects to shave off another EUR 25m from its net debt.

Gorenje labelled the operations in the first nine months as successful in spite of unstable external factors, including the crisis in Ukraine, drop in value of a number of currencies in eastern Europe and a drop in demand for white goods in Russia.

The group registered a "more pronounced cooling in consumer confidence" in east Europe markets. However, it managed to see growth in some key markets, including Germany, the Czech Republic, Slovakia, Hungary and Great Britain.

Revenues on markets outside of Europe grew by nearly 15%, with the biggest jumps seen in the Far East and in the US.

The group also saw a shift in the structure of sales by product value, with premium lines generating 16.7% of all sales, which is 2.4% percentage points more than last year.

Gorenje chairman Franjo Bobinac said that the group managed to post strong results despite the crisis on a number of key markets due to its ongoing restructuring efforts aimed at optimising operations and focusing on higher value added products.

The group said it expected to finish the year in the black, after finishing 2013 with a loss of EUR 18.6m.


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