Business News

Write-downs Drag Sava Deep in the Red

Kranj, 19 November (STA) - Sava, the chemicals-through-tourism group, reported a EUR 80.3m loss for the first three quarters of the year after booking a EUR 71.3m write-down on its investment in insolvent retailer Merkur. Group net revenue dropped 1% year-on-year to EUR 132.8m.

In the absence of the write-downs, which totalled EUR 81.1m, the group would have broken even, says Friday's press release from the company.

To pay down its EUR 376m debt to banks, the company said today it would sell its 23.8% stake in Abanka, Slovenia's no. 3 bank, which is worth EUR 83m at the current market price.

Sava says its core business is performing well, as the rubber division, which accounts for nearly 60% of group sales, expended by 20%. However in tourism, which represents a third of sales, revenue was down 3% over the year before.

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