At yesterday’s, 8th regular meeting, the Supervisory Board was informed about the business operations of the Sava Group and Sava d.d. in this first half-year and a regular monthly report on the operations in the period January-July 2013. In the adverse circumstances of this year, the Sava Group companies continue to implement the business-financial restructuring strategy until the end of 2014.
The two major strategic achievements of the past months were:
- Firstly, the sale of the Rubber Manufacturing division, which owing to the generated profit enabled a significant de¬crease in the financial liabilities of Sava was finalised; and
- Secondly, the restructuring of total Sava’s loan obligations with the creditors was concluded, thereby satisfying the key condition for achieving solvency and liquidity, and enabling further strategic shifts towards reducing indebtedness, renewal of profitability and generating long-term value for the shareholders of Sava.
In the first half-year of 2013, Sava d.d. generated a net profit of €17.8 million and reduced its financial liabilities by €71.7 million at the same time. In this period, the Sava Group made sales revenues of €29.9 million. A loss of €6.0 million was made at the Group’s level, while indebtedness reduced by even €53.3 million.
In the period January-July 2013, Sava d.d. made a total profit of €20.9 million or a net profit of €20.2 million. In addition to the financial revenues made in the sale of Rubber Manufacturing, the profit generated in the sale of fixed assets and cost savings, the achieved result was also due to adapting the interest expenses to the concluded debts restructuring agreement.
In July, the Sava Group companies significantly improved the result, mainly owing to the strong sales in Tourism; in the first seven months, they made unconsolidated sales revenues of €38.9 million, which lags only 1% behind the plan for the period. The principal share of sales totalling €35.2 million was made by the Tourism division. The Group’s operating result at the end of July is still subject to seasonal influences, however, total loss of the Sava Group reduced to €1.4 million and net loss to €2.1 million.