GORENJE, d.d., Velenje
Gorenje Group's revenue and profits increase in the first nine months of the year despite a challenging third quarter
Pursuant to the Rules and Regulations of the Ljubljana Stock Exchange, d.d., the Financial Instruments Market Act, the Corporate Governance Code for Joint Stock Companies, and in accordance with the provisions of the Code of Best Practice for WSE Listed Companies, the company Gorenje, d.d., Velenje, hereby makes the following announcement:
With challenging conditions in both downstream and upstream markets, as well as the labour market, Gorenje's performance remains stable as the Group generated nearly EUR 944 million of sales revenue in the first nine months of the year, or 4.8 percent more than in the same period last year. Comparable operating profit before depreciation and amortisation (EBITDA) was higher by good five percent as it nearly reached EUR 59 million. Net profit at EUR 4.6 million was 12.1% higher than in the equivalent period of the year before. We increased our sales of major domestic appliances, including the premium brands, and small domestic appliances. We also improved our geographical structure of sales and increased our revenue from other businesses. Performance in the third quarter was negatively affected by slower sales that fell short of the budget, especially in the markets of Germany and Great Britain; rising prices of materials and components; labour cost pressures; and decrease of productivity as a result of mass production launch for new generations of products. Considering the typical dynamics within the year, we expect to see the largest share of revenue in the last quarter, which in turn will also affect the overall performance. In view of the said negative circumstances, we find that all key objectives laid down for 2017 are not attainable, despite the many measures introduced to mitigate them.
Please, find attached the Management Board comment on Gorenje Group operations and performance in the first nine months of 2017, and the 2017 end-of-year estimate.
Disclaimer: The English text for all announcements is for information purposes only!
The information in this announcement will be available on the official web site of the company Gorenje, d.d., Velenje, Slovenia, www.gorenjegoup.com, for at least 10 years from the date of this announcement.
The Management Board