Gorenje is closing the year with a negative trend but expects better results for 2020

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Despite the greatly improved performance in the second half of the year, Gorenje expects negative result for the whole 2019, a result of very low sales in the first six months and the related underutilization of production capacity, which in turn was related to the revision of the company sales strategy, local reorganization of sales, tightening of credit management policy, optimization of inventory levels, introduction of numerous changes in management etc. Conversely, profit is driven mainly by increase in production based on higher sales, as evident from the considerably better results in September.
In order to improve the profitability, Gorenje shall continue to strive to improve its operating efficiency, further cut its expenses, optimize administration, cut problematic capital etc. With such measures, the company is planning to increase its revenue by approximately 10 percent next year and end the year with a profit for the first time after the takeover. The emerging Chinese market, where Gorenje and the premium Asko brand are commercialized, is also expected to contribute considerably to total revenue.
«In the last year, we have carried out and we continue to carry out measures to improve our operations and performance, while also reshaping the company. This has already yielded positive results, and we are planning a business turnaround in 2020 when we have to make profit – said Gorenje chief management director Dr Lan Lin. – We shall continue to strive to improve efficiency, as this is the key prerequisite for the company’s success and profitability, as well as for further investments, including the new TV set factory in Velenje. By reshaping the company, we will become leaner and more responsive, as Gorenje and the new company Gorenje Hisense Europe Services become Hisense’s production, development, and management centre in Europe. In the long run, this will also mean new jobs.»

One-millionth dishwasher produced in Gorenje, Velenje
Gorenje dishwasher appliances factory in Velenje has produced its one-millionth dishwasher since the beginning of production in this plant. The landmark appliance is of the premium Asko brand.
The dishwasher production in Velenje started at the end of August 2013, when the factory produced 32.102 Asko appliances. The production has been increasing from year to year and expanded to produce dishwashers for the Gorenje brand as well. Today, Gorenje and Asko brands make approximately for half of the dishwashers production each. During 2019 about 215.000 dishwashing appliances has been produced. The one-millionth dishwasher produced in Velenje will be donated to one of the dishwasher plant employees.

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