Business News

Steklarna Hrastnik Sees 63% Surge in Profit

Hrastnik, 25 March (STA) - The Hrastnik-based glass manufacturer saw its profit from ordinary activities grow by 63% to EUR 2.8m last year. Revenue was slightly down on the year before to EUR 48.6m, Steklarna Hrastnik general manager Andrej Božič told reporters on Tuesday.

Božič attributed the 2.3% fall in revenue to a suspension of production in the tableware glass unit in January and February due to a EUR 7m investment into a new furnace.

Steklarna Hrastnik made EBIT of EUR 3.8m last year, which Božič said was a 10-year high, and up EUR 2.4m from the year before. EBITDA rose by EUR 1.3m to EUR 8.2m.

Value added per an employee amounted to nearly EUR 32,000 last year, which saw the company scrap unprofitable production lines.

Preliminary estimates for the first quarter of this year indicate revenue was up 7.1% on the same period a year ago to EUR 13m, while profit from ordinary activities surged 11-fold to EUR 1.4m.

The plan for this year is for revenue to increase by 7% and for the profit to amount to EUR 4m. The company also plans several investments, including an EUR 8m upgrade of the bottle making furnace.

The company makes high-end tableware, container glass and glass for lights, servicing buyers such as Hennessy, Finlandia, Bacardi, Villeroy & Boch and Heineken.

Operations restructuring has enabled it to get into new markets, increase profitability of sales, get 46 new major buyers, land a new project for Paris Disneyland and a deal with prestigious hotel chains.

Božič said the company enhanced its position as a leading global manufacturer of boutique bottles.

Steklarna Hrastnik was put on sale in June last year, but then its owner Igor Lah abandoned the plan at the end of the year.

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