Business News

Tool Maker Unior Sees H1 Profit Soar 180% Despite Drop in Revenues

Zreče, 29 August (STA) - Unior, the tooling and tourism group, posted a net profit of EUR 5.9m in the first half of the year, a 180% rise on the same period a year ago, despite a 5% drop in revenues in the same period.

Net sales amounted to EUR 110.3m in the first six months, with the regression on last year caused primarily by a 35% drop in revenues in the machinery line (EUR 9.1m) due to what the group termed "changed dynamics in sales".

Sales were also down at the group's tourism arm, which saw revenues of EUR 9.1m, a fall of 5.1% year-on-year. It blamed this on unfavourable weather in the peak ski season (the group operates the Rogla ski resort in north-eastern Slovenia).

Meanwhile, sales in the forged parts and hand tools lines rose by 6.8% to EUR 46.7m and 4.2% to EUR 16.4m, respectively.

Operating profit at the group, which is included on the list of 15 companies the government wants to sell, rose by 29.1% year-on-year to stand at EUR 9.3m in the year through June.

The group was hit hard by the global economic downturn, its sales contracting by over 30% from 2008 to 2013, and was forced to implement broad financial restructuring.

It undertook a financial overhaul last year revolving around a deal with creditors to halve its financial debt to EUR 71m by the end of 2019.

As part of this, Unior has pledged to sell its non-core assets, including parts of its tourism division, but is also looking to raise capital.

"The set strategy is a good foundation for restoring strong operations," it said in a statement, adding that cost cutting in the 2013 brought savings of EUR 7.5m.

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