GORENJE: good results in 2014

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gorenjeIn 2014, Gorenje Group revenue amounted to 1.24 billion euro, recording an increase of 0.4% over 2013. Core activity revenue, including home products and services, reached 1.06 billion euro, an improvement of 0.1% over 2013. Adjusting for currency translation differences, core revenue growth amounts to 3.8 percent.
The Group increased its revenue in several markets, including Germany, Austria, Czech Republic, Slovakia, Hungary, Slovenia, Bosnia and Herzegovina, Romania, Bulgaria, markets of the Caucasus region, Australia, North America, and Russia. Moreover, sales of upmarket appliances rose by 2 percentage points. Thus, premium appliances accounted for 16.4% of total major appliance sales volume.
The plans for 2015 are affected by the uncertain situation in Russia. For the first time after a decade of continuous growth, the Group is expecting a drop in revenue in this area, despite the management has introduced a variety of measures to minimize the effects of harsher macroeconomic conditions expected especially in the first half of the year. Pricing policy is being adjusted, operating costs are being optimized, and product assortment has been expanded with a new generation of built-in cooking appliances which carry most of Gorenje’s recognition and distinctiveness also in Russia. As in 2014, the Group has hedged most of its 2015 rouble cash flow.