Đuro Đaković Group business report for 1 - 3 2019In the period 1 – 3 2019, Đuro Đaković Group had a total revenue of 111,4 million HRK and total expenditure of 116,2 million.
The Group achieved pre-tax operating loss in the amount of 4,8 million HRK, i.e. trade losses in the amount of 2,5 million HRK.
At the same time, positive EBITDA in the amount of 5,9 million HRK (EBITDA margin of 5,3%) was achieved and it hast to be emphasised that all companies that are members of ĐĐ Group have achieved positive operating income.
The operating income is smaller by 29,2 million HRK in comparison with the year 2018 (mainly decreased by the income from the ceased activity). There is an increase in the export in the amount of 8,9 million HRK, thanks to the export growth in the Transport sector and it makes 80,1% of the total operating income.
Đuro Đaković Specijalna vozila d.d. managed to change the trend of negative operating income, but the net result is still negative. Having in mind the structure of works contracted and expected future orders, stronger growth of the EBITDA margin is expected in the second half of the year. In addition to the above, it has to be emphasised that the share of the Defence sector in the total revenues of the company Đuro Đaković Specijalna vozila d.d. is constantly low, which gives additional space for growth of total margins within the company when this programme starts participating in the revenues with bigger shares.
The result that was achieved by Đuro Đaković Grupa d.d. and Đuro Đaković Industrijska rješenja d.d is marked by declined volume of operation in the Industry and Energetics sector. After the decision on abandoning the production of heavy equipment, Đuro Đaković Industrijska rješenja d.d. is now finishing previously contracted works and most of them will be finished in the second quarter of the year 2019. This process will result in significant staff reduction in this company, but also in stopping loss making of this sector.
The remaining two companies have positive operating results that are in accordance with what was planned.
After obtaining a loan from HBOR (Croatian Bank for Reconstruction and Development) at the end of last year and improving the maturity and achieving better liquidity, additional improvements in the working capital were achieved in the first quarter of the year, the net working capital is positive and amounts to 25,3 million HRK, which is an improvement in comparison with the end of the year 2018 by 10,6 million HRK.
The measures that were taken in 2018, as well as measures that are being taken at the moment, show that it is necessary to continue financial restructuring with the emphasis on further strengthening of the working capital, restructuring of liabilities and increase of the company’s capital in the structure of sources of business finance, which will lead to the long-time sustainable and stable development of the entire Đuro Đaković Group.
On 31st March 2019 Đuro Đaković group had a total of 544,1 million HRK of works contracted.