At 9th regular meeting, held on 21st September 2013, the Supervisory Board of Sava d.d. was informed about the operations of the Sava Group and Sava d.d. in the period January–September 2013.
Sava d.d. and its subsidiaries continue to implement the strategy of business and financial restructuring, at which they are further challenged with the adverse economic environment. The goal of the strategy is to reduce indebtedness, renew profitability and create a long-term value for the shareholders of Sava.
The major strategic achievements of the past months of 2013 were as follows:
Firstly, the finalised divestment of Rubber Manufacturing, which owing to a generated profit enabled a significant decrease in Sava’s financial liabilities; and
Secondly, the agreed restructuring of total Sava’s loan obligations with the lending banks, thereby fulfilling the principal condition for achieving solvency and liquidity, on the basis of which the agreement on restructuring of Sava’s financial obligations was concluded also with the holders of the Sava bonds.
The financial position and business stability of Sava have been significantly improved owing to reducing the debts and concluding the agreement on financial liabilities restructuring with both the lending banks and bonds holders.
In the three quarters of this year, Sava d.d., družba za upravljanje in financiranje d.d., generated a profit from operations of €2.4 million. It ended the past nine-month period with a total profit of €18.5 million or a net profit of €16.9 million, and repaid the financial liabilities of the company in the amount of even €70.7 million.
The generated profit of Sava d.d. was greatly affected by the financial revenues made at divesting the Rubber Manufacturing division and the profit generated at selling the fixed assets. A positive contribution to the generated profit was also due to cost rationalisation, inclusive of further optimisation of internal organisation in Sava d.d. and reducing employee number (by further 9 associates to the present 22 associates). The movement in the stock exchange and the general economic trends dictated impairments of financial investments in the amount of €2.7 million.
Besides managing financial investments of Sava d.d., in which the major part have investments in the banking sector (Gorenjska Banka d.d. and Abanka Vipa d.d.), the Group’s key business line is represented by the merged Tourism division. This Sava’s division, which is the leading tourist services provider in Slovenia, generated a prevailing majority or 92% of total sales revenues of the Sava Group; these amounted to €52.8 million at the end of this September. Tourism ended the nine-month period with an operating profit of €3.3 million and a net profit of €1.2 million.
To cater for the needs of the future development projects, Sava Turizem d.d. established two subsidised companies this year: Sava Golf d.o.o. and Sava Zdravstvo d.o.o. In nine months of this year, a sum of close to €4 million was invested in renewal of capacities and enriching the offer of Sava Hotels & Resort destinations.
The companies of Other Operations with this year’s sales revenues of €3.6 million represent only a minor part of the Group’s business and are mainly earmarked for being divested. In November, a divesting process of the Bosnia-based company for the production of wooden pellets, Ensa BH d.o.o., Srbac, was completed. Owing to the implementation of this project the strategic activities in other segments of energy management business can now be accelerated.
In the first nine months, the subsidised companies of Sava d.d. (Tourism and Other Operations) made an operating profit of €3.0 million in total and a net profit of €0.7 million; as already reported, Sava d.d. made an operating profit of €2.4 million and a net profit of €16.9 million. The accumulated negative result of the Sava Group (a net loss of €4.2 million) was due to the fact that the prevailing portion of the profit generated by Sava d.d. at divesting Rubber Manufacturing and real property was not included in the Group’s balance, since proceeds from divesting were already recognised as the Group’s profit in the past, whereas the sale of real property was a transaction within the Sava Group that is not to be included in the consolidated financial statements.
Business operations of Sava d.d. and the Sava Group in the three quarters of 2013
Sava d.d.
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