Nazarje, 03 August (STA) - BSH Hišni Aparati, the Slovenian subsidiary of the Bosch and Siemens Home Appliance Group, saw its profits, revenue and the number of employees decrease in 2018 compared to the year before. A drop in business performance is mostly a result of product withdrawals.
The company generated EUR 318 million in revenue last year, 8% less than in 2017, while its net profit decreased by almost EUR 750,000 to EUR 11.4 million, BSH Hišni Aparati says in its 2018 business report.
Last year, the company had a workforce of 1,276 employees, 177 fewer than in 2017.
The poorer results were expected since certain major markets saw a drop in small domestic appliance demand. Moreover, Siemens brand products were discontinued in the BSH Adriatic East retail region.
The Nazarje-based company improved its productivity last year by proceeding with lean production strategy implementation and promoting an agile mindset.
Its investment almost doubled compared to 2017 to top EUR 19 million - almost EUR 14 million was earmarked for new product development, while the rest went for strengthening and expanding capacities as well as new equipment.
The main project was a construction of a new logistics centre in Nazarje near Celje, a EUR 5.3 million project.
This year, the company plans to build new facilities for its development centre, allocating EUR 3 million for the purpose.
The BSH Hišni Aparati management estimates that 2019 will be a challenging year due to the unstable market of small household appliances for preparing food, and pressure on prices. On the other hand, the demand for coffee machines has been growing.
The company expects moderate sales growth in the domestic market since economic forecast has predicted that economic growth in Slovenia will slow down.