In the year 2012, the implementation of the restructuring strategy is being carried on. Despite the aggravated economic environment the operating result of the business operations has further improved in 2012.
The sales growth and the total profit generated by Sava Group subsidiaries surpass both the plans and last year’s achievements. A net loss of €7.6 million was made at the level of the parent company, and, consequently, a net loss of €12.5 million at the level of the Sava Group. The amount of the loss was greatly due to further impairments of financial investments and a shortfall of the planned financial revenues of Sava d.d. expected from the dividends of Gorenjska Banka d.d. The implementation of the second restructuring phase goes even faster that envisaged, which can have a significant positive impact on the volume of deleverage as well as on the operating result of Sava d.d. at the end of this year.
In the first half-year of 2012, Sava Group companies made sales revenues of €96.6 million, representing a 3% improvement on the same period last year and 1% improvement on the plan. The majority or 97% of total Sava Group’s sales was made by the Rubber Manufacturing and Tourism divisions.
The largest Sava’s division, Rubber Manufacturing with the Foreign Trade Network, made sales revenues of €63.8 million, thereby improving the result of the same last year’s period by 5% and surpassing the business plan by 1%. The growth of sales revenues in Tourism was in accordance with the plan, i.e. it was by 2% better than in the same period last year.
The operating profit of Sava Group companies amounted to €3.8 million at the half-year, which was by €1.3 million or by one half better than the result made in the same period last year. The total profit of subsidiaries in the amount of €2.8 million was by 82% higher than last year and by 16% better than planned. The largest divisions, Rubber Manufacturing and Tourism, but also a part of Other Operations, save for the energy management business, operated better than planned.
In the first half-year, the investments were limited and at the level of the Sava Group they amounted to €3.0 million. The prevailing part of investments in this period, i.e. close to three fourths, referred to the investments in the modernisation of the production equipment in Rubber Manufacturing, 27% of total investment assets were earmarked for investments in the energy efficiency of buildings and improvements of guest accommodation quality in Tourism.
In the first half-year, the parent company Sava d.d. generated revenues of €9.7 million, which is significantly less than last year or as planned, since the business plan took into account the dividends of Gorenjska Banka d.d., which according to the resolution by the Annual General Meeting of Gorenjska Banka d.d., were thus not paid out. Financial expenses of €13.5 million were substantially lower than last year and, as to their subject matter, they mainly referred to interest expenses for loans and impairments of financial investments.
A further decline in stock exchange prices and a deterioration in the economic environment having a significant impacts on both the real and the banking sector, requested for impairments of financial investments of Sava d.d. in the amount of €3.9 million. Their value was not included in the business plan; they refer to the financial investments in NFD 1, Delniški Podsklad, in the amount of €1.1 million, impairments of financial investment and of the approved loan in connection with NFD Holding d.o.o. in the amount of €1.5 million, and other impairments of €1.3 million.
The dynamics of fulfilling the semi-annual business plan was further influenced by a shift of the envisaged disposal of a part of Sava d.d.’s real estate to the second half-year. An important impact on the fulfilment of this year’s business plan has this year’s decrease in the corporate income tax rate.
The net loss of Sava d.d. amounted to €7.6 million at the half-year. The net operating result of the Sava Group was negative too and this was mainly due to the factors, which affected the operating result of the parent company; it amounted to €12.5 million at the half-year.
The Sava share price moved from €13.0 to €5.1 in the first half year. The average price for share amounted to €6.2 at the end of June and in comparison with the end of this first quarter it went down by 48.3%. The book value of the Sava share amounted to €76.0 at the halfyear; owing to further unfavourable movements in the capital markets its value declined by 7.6% compared to the end of the past year.
The share of capital in the liabilities structure of Sava d.d. amounted to 20% at the half-year, and in the liabilities structure of the Sava Group to 27%. Total financial liabilities of Sava d.d. achieved the value of €296.4 million at the half-year and in comparison with the end of the past year they reduced by €12.9 million. Total financial liabilities of the Sava Group were by €9.5 million lower than at the end of 2011 and amounted to €361.8 million.
This year, the decreased volume of deleverage was greatly due to the disposal of Investicijsko podjetje d.o.o., Ljubljana (the former Sava IP d.o.o.), the mainstay of the Real Estate division. A disposal of the Rubber Manufacturing division is being in progress, and carried out as planned; it is expected to be finalised even before the end of this year. The Management Board of Sava d.d. plans to make an agreement with the banks and sign a contract on reprogramming the financial liabilities of Sava d.d., which will facilitate further implementation of the restructuring strategy of Sava.
Sava d.d.
Corporate Communications