Business News

Gorenje Back in the Red in 2013

Velenje, 31 January (STA) - Household appliances maker Gorenje slipped into the red in 2013, posting a group net loss of EUR 25.3m compared to a minor profit a year before. Sales revenue amounted to EUR 1.24bn, down from EUR 1.26bn in 2012, according to a preliminary estimate released on Friday.

The loss is attributed largely to write-offs of financial investments. The total effect of one-off events, which included disinvestment of non-core assets, was EUR 24.6m.

Adjusting for these negative effects, the group results for 2013 would have been positive, the company said.

Profit before income tax, depreciation and amortisation (EBITDA) was down 16% year-on-year to EUR 76.6m, with operating profit (EBIT) down almost 24% to EUR 34.2m.

Despite the negative figures, the company is upbeat about the future given that 2012 and 2013 were marked by in-depth streamlining of operations.

"The last two years were a watershed for Gorenje's further development. We have responded to the challenging market conditions and increasingly harsh competition by extensive restructuring...laying the foundations for the Group's enhanced efficiency and competitiveness," CEO Franjo Bobinac was quoted as saying.

For 2014 Gorenje plans 3.6% sales growth and a 22% increase in EBITDA. It projects a net profit in excess of EUR 12m.

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