Đuro Đaković Group business report 1. - 9. 2018In the period 1 – 12 2018 Đuro Đaković Group had a total revenue of 466,3 million HRK and total expenditure of 492,7 million HRK. The Group achieved operating loss in the amount of 26,4 million HRK.
At the same time, positive EBITDA in the amount of 25,2 million HRK was achieved. The EBITDA margin is 5,5% (in 2017 the EBITDA margin was 1,5%). This net result represents improvement by 6,9 million HRK in comparison with the result achieved in 2017, while the EBITDA achieved is by 16,8 million HRK better (the loss in 2017 was 33,3 million HRK, while the EBITDA was achieved in the amount of 8,4 million HRK).
The height of EBITDA, as well as EBITDA margin, is the highest achieved in the last ten years of Đuro Đaković business activities (although together with the above mentioned EBITDA there was also additional loss in the amount of 18, 1 million HRK achieved from interrupted activities).
The main reason for the net loss is related to the activity in heavy equipment manufacture. For this production sector a decision has been reached on cessation of the activity, and as part of the business activities of the company Đuro Đaković Industrijska rješenja it achieved a total loss of 18.1 million HRK in 2018.
The company Đuro Đaković Specijalna vozila also achieved a result that is below the planned, due to the increased cost of hours worked, caused by a large number of requested modifications on a new type of wagon, its technological complexity, significant increase in the number of wagons manufactured every month, as well as beginning manufacture of a new wagon type.
Export remains the major source of income for Đuro Đaković Group (64,5% of revenues) and it is at the same level as it was last year. It has to be emphasized that in spite of the difficulties there is a significant increase of export in the Transport sector (increase by 8,7%, i.e. 21,7 million HRK), which almost compensated for the loss of export in the Industry and energetics sector from heavy equipment manufacturing (decrease of exports by 20,5 million HRK in 2018).
Since credit agreement with HBOR (Croatian Bank for Reconstruction and Development) in the amount of 95 million HRK was also signed in October 2018, the net working capital of Đuro Đaković Group has improved and it is now positive in the amount of 28,6 million HRK. In comparisson with 2017, the net working capital has improved for 113 million HRK (2017 : -84,4 million HRK).
One of the objectives of Đuro Đaković Group in 2019 is the completion of the restructuring process in the company Đuro Đaković Industrijska rješenja – all the necessary decisions on cessation of the unprofitable activity have been made and it is expected that the decision will be fully implemented in the first part of the year. By completing the planned, Đuro Đaković Industrijska rješenja d.d. would no longer generate losses and would start achieving positive operating results and by potential selling of part of its assets the group would additionally improve its solvency.