Business News

Sava Raises Profit Despite Severe Drop in Sales

Kranj, 31 March (STA) - The Sava group, whose core businesses include tyre making, tourism and real estate, saw sales plunge 25% to EUR 172.9m in 2009, but operating profit nevertheless jumped to EUR 4.9m from a loss of EUR 5.8m the year before.

Net profit increased 12-fold to EUR 23.4m, or EUR 11.77 net per share, but it was still 40% below plans, the company said Wednesday.

Profit would have topped EUR 58m were it not for a EUR 35m writedown of Sava's stake in the bank Abanka Vipa and, to a smaller extent, other financial investments.

However, investment finance accounted for the bulk of profit. Tyre making and tourism managed to just about break even despite a decline in sales of 21% and 9% respectively, while the tourism division ended in the red.

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