Kranj, 31 August (STA) - The chemicals-through-tourism conglomerate Sava halved its half-year net loss to a EUR 20.2m in 2011 compared to the year before. Impairments of investments continue to be the main problem of the group, which is announcing a new development strategy.
The group reported on Wednesday EUR 93.8m in sales revenues for the first half-year, which is a 14% improvement year-on-year. Operating profit was at EUR 2.5m after a loss of EUR 0.5m in the same period last year.
Investments impairments caused a EUR 29.6m half-year loss for the core company, preventing what would have otherwise been a half-year profit of EUR 4.7m for the core company and EUR 5.2m for the group.
The rubber manufacturing and tourism divisions contributed 94% to the overall sales revenues, with the rubber division accounting for EUR 60.6m, a 13% increase year-on-year.
Sava's total assets stood at EUR 521.6m after six months, slightly up on the first quarter but down 3.7% compared to the end of 2010.
Debt to banks decreased by 3% at the core company and by 2% at the group.
According to Sava, which got a new management in March, the financial situation remains stable, it will however require divestment activities. A new development strategy is also being drawn up, which will be presented in the autumn.