GORENJE: revenue up by 1.3% in the first 9 months

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GorenjeAlthough conditions in the European white goods market were challenging in the first nine months of the year, with a significant decline in consumer confidence especially in Eastern Europe, Gorenje succeeded in increasing its revenue to 909.2 million euro, which is 1.3% more than in the corresponding period of the year before. The Group saw revenue growth in all three quarters of the year. Profitability and financial strength were both improved. Operating profit (EBIT) amounted to 32.7 million euro, which is 38.1% more than in the first nine months of last year. Net profit stood at 4 million euro, which is 22.2 million euro better than last year when the Group wrapped up the first nine months of the year with a loss of 18.2 million euro. Net debt was cut by 49.6 million euro. Gorenje’s bottom line was in the black in all three quarters of the year, despite some unexpected circumstances that exerted a notably negative effect on its operations and performance (political crisis in Ukraine, depreciation of Easter European currencies, particularly the rouble, and lower demand for white goods in Russia).
For the future, Gorenje Group is carefully monitoring the development of events in Ukraine and Russia. According to current estimates, revenue in Ukraine will reach approximately a half of the last year’s figure, while in Russia, sales are expected to be at a level comparable to that of 2013. Thus, revenue in both markets will be lower than planned due to unexpected external effects. In addition, the effect on performance will also be negative. Considering the current orders placed for the period by the end of the year, Gorenje Group estimates that revenue will be roughly the same as last year while the end-of-year bottom line will remain positive.