Confronted with further falls in stock exchange prices and economic setbacks, the companies of the Sava Group and Sava d.d. continued to implement the restructuring strategy for Sava as set out until 2014. Owing to a high level of financial liabilities, the principal activities primarily concentrated on the measures that lead to deleveraging the Group and Sava d.d., at which it was particularly dealt with further increases in cost efficiency, improvements in operative business and regulating the relations with the banks.
At the end of this September, the companies of the Sava Group made sales revenues of €149.4 million, which was by 1% lower than planned, but at the same time by 1% better than last year and that despite this year's sale of the major part of Real Estate.
The EBIT of Sava Group companies amounted to €9.2 million at the end of third quarter, which was by 44% better than in the same period last year or by 3.3% better with regard to the comparable Group composition in 2011.
The operating result of the parent company Sava d.d. improved too, which was mainly due to reducing the costs by 35% with regard to the same period last year. The generated operating loss in the amount of €1.9 million was by 17% lower with regard to the same period last year, or by 16% better with regard to the business plan of Sava d.d.
The net loss of Sava d.d. totalled €11.3 million at the end of third quarter; accordingly, the net operating profit of the Sava Group was negative too and totalled €11.5 million.
The deviation from the business plan was mainly negatively influenced by additional impairments of financial investments of Sava d.d. in the amount of €3.9 million, by a shortfall of the planned dividend payment by the banking sector, a decrease in the corporate income tax rate and, reducing the deferred tax receivables in this connection, as well as a lag in the sale of a part of Sava d.d.'s real property, being rescheduled to the last quarter of this year.
The book value of the Sava share amounted to €76.7 at the end of September and it significantly surpasses the market values, which considering the negative movements and low liquidity of the Slovene capital market are formed in the stock exchange. In the first nine months of this year, the stock exchange price of the Sava share moved between €3.2 and €13.0.
The share of capital in the liabilities structure of Sava d.d. amounted to 19.5% at the end of September, while in the liabilities structure of the Sava Group it had a 26.8% share. Total financial liabilities of Sava d.d. achieved the value of €296.5, while total financial liabilities of the Sava Group amounted to €361.5 million at the end of this third quarter.
The major achievement of this financial year is a successful and efficient divestment of the assets of Sava d.d. In March, Sava d.d. sold a 14.56% equity holding in Terme Maribor, in June it sold Investicijsko podjetje d.o.o., Ljubljana (the former Sava IP d.o.o.), the then mainstay of its Real Estate business. At the end of October - significantly before the strategically planned terms - a contract for selling the entire Rubber Manufacturing was signed. The sale of the Energy Management companies is in progress and is expected to be finalised before the end of this year.
The result at the end of this year will be affected by impairing the financial investment of Sava d.d. in Abanka Vipa d.d., to be carried out on the basis of an evaluation. The sale of Rubber Manufacturing companies, which subject to fulfilment of suspensory conditions is expected to be completed by the end of this year, will substantially improve the operating result of Sava d.d., and combined with the effects of other disinvestments, the debts with the banking sector will be reduced by about €100 million. This will provide an extra platform for making an arrangement with the banks as to the reprogramming off inancial liabilities and enable further implementation of Sava’s restructuring strategy.
Sava d.d.
Corporate Communications