Business News

Gorenje group with a EUR 29.4m net loss in H1

Ljubljana, 26 July (STA) - The household appliances group Gorenje generated EUR 567.5 million in revenue in the first six months of the year, up 1.6% on the same period in 2018. However, its net loss in the first half of the year amounted to EUR 29.5 million, Gorenje announced on Friday.

Out of the EUR 567.5 million total sales revenue in the first six months, the principal activity accounted for EUR 523.4 million or 92.2%.

Sales of household appliance were up by 1.5% and growth was particularly pronounced in East European markets (Romania, Hungary and the Czech Republic), and slightly less in the Scandinavian countries, France and Spain.

The group owned by China's Hisense is meanwhile less satisfied with the first-half sales in Russia, Germany and the Netherlands.

The company explained in the report that its operations in 2019 were significantly affected by the integration in the Hisense group, which include activities and measures aimed at improving efficiency and profitability.

Gorenje added that the activities related to reducing inventories and a stricter policy of credit risk management had resulted in a lower volume of production in the short run.

Chief managing director Chao Liu commented on the results by saying that the "start of the year was challenging, as we struggled with losses for several months."

However, our goal has always been clear: to effectively integrate Gorenje into the Hisense group and thus enable long-term savings, optimise operations, and utilize appropriate measures to improve efficiency and profitability," he added.

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