Q1 Profit Rises 24% at Gorenje

By , 11 May 2018, 10:50 AM Business
A woman enjoy's one of Gorenje's refrigerators A woman enjoy's one of Gorenje's refrigerators www.instagram.comgorenje_slovenija

Share this:

STA, 10 May 2018 - Slovenian's household appliances maker Gorenje saw its first quarter group net profit increase by 23.5% year-on-year to EUR 2.5m as revenue rose by a mere 1% to EUR 296m. 

The quarterly sales revenue accounts for 22% of the total group revenue budgeted for the year, and the profit accounts for 31% on the annual target, the company said.

EBITDA was up 8.7% year-on-year to EUR 22.4m, while the operating profit (EBIT), at EUR 7.8m, is on a par with the figure for the first quarter of 2017.

Net financial liabilities increased by EUR 3.5m to EUR 411.5m.

The company generated over 83% of revenue in its core activity, increasing own brand household appliances sales by 4%.

The group saw its steepest growth in sales in Eastern Europe and in markets outside Europe, in particular in Israel, Brazil, and Chile.

In Western Europe, its sales revenue increased in Austria, Denmark, and France, but decreased in the Netherlands, Germany, and the UK.

"Consistently with the strategic plan, we continue to boost sales beyond Europe and sales of premium and innovative appliances, and increase our investment in development," the company said.

Investment in product development increased to 2.7% of the group revenue.

The unaudited quarterly report was reviewed by the supervisory board today.

The board was also acquainted with an audit report on the sponsorship of the Russian Torpedo football club in the 2014/2015 season, which found no irregularities.

The supervisors were also informed on the selection of Chinese group Hisense as the best bidder to enter Gorenje as a strategic partner.

Hisense offered EUR 12 per share subject to condition that they acquire no less than 50% plus one company share in the takeover process.

The selected bidder committed to announce a takeover intent within 15 days, and make a takeover bid to all shareholders within the mandatory deadline.

The supervisory board endorsed 12 June as the date of the shareholders' meeting.

Photo galleries and videos

This websie uses cookies. By continuing to browse the site you are agreeing to our use of cookies.