Income and Profit of the Largest Slovenian Companies for 9 Months of 2017
Journalists of the siol.net website have analysed the performance of Petrol, Mercator, Gorenje, Krka and seven more companies in the period from January to September this year. Their combined average annual income from sales in the Slovenian and foreign markets exceeded 11 billion euros. The companies employ more than 60 thousand people, mainly in Slovenia.
In the current year, revenues from sales amounted to 8.9 billion euros and by 10% exceeded the similar indicator of last year. On average, the companies’ revenue growth made 7%. The volume of revenues reached record values, even without taking into account the indicators of Petrol (growth of fuel prices) and a number of companies that curtailed certain activities and left the external markets (Mercator, Telekom, Intereuropa). It amounted to 357 million euros and was 25% higher than the same indicator for 9 months of 2016.
Significantly higher profits were made by all companies under consideration with the exception of insurance companies, such as Triglav and Sava Re. Their results were influenced by the natural disasters. The profit of the leading Slovenian companies reached the highest levels. Higher values were recorded only in 2015, when Krka achieved the best result in its history, and in the record (pre-crisis) year of 2008.
For the first 9 months of 2017, companies spent 374 million euros to expand and modernize production facilities, as well as to enter new foreign markets. The largest investors in this segment were Telekom (90 million euros), Krka (80 million euros) and Gorenje (53 million euros). The EBITDA indicator (earnings before interest, taxes, depreciation and amortization) – amounted to 771 million euros.
At the end of September 2017, companies had 2.3 billion euros of financial liabilities, which is 100 million euros or 4% less than in 2016. All companies reduced their debts. Gorenje also significantly increased its sale volumes. This year, the company has invested over 50 million euros in production and development.
The leading oil trader and the leader among Slovenian companies in terms of sales volume—Petrol—increased its revenues by slightly less than 25% for the first 9 months of this year. Not only have the sales of motor fuel grown by 8%, but also the sales of goods (by 6%). The company featured records not only in revenues, but also in cash flow from operations (EBITDA) and profit.
The Petrol business activity was also positively affected by partial liberalization of the motor fuel market, as a result of which prices at gasoline stations on highways and freeways are formed within the free market conditions. For Cinkarna Celje, one of the largest European manufacturers of titanium dioxide pigments, the year 2017 brought records as well. The company’s revenues exceeded the planned figures by 27%.
Significant growth in indicators is also noted in the leading pharmaceutical company Krka (Novo Mesto), which last year produced the lowest profit since 2005. The growth in sales in the third quarter of 2017 was primarily determined by the Western Europe market, where revenues grew by almost a quarter. Krka had a high indicator of sales growth (19.3%) in the countries of Eastern Europe (without taking into account the Russian market).
In the period from January to September 2017, Luka Koper produced a record 40 million euros of net profit, exceeding the same last year value by 20%. Net sales revenue in the reporting period increased by 6% to 158 million euros. Within the Group limits, Luka Koper increased the volume of transported goods by 7% in the first nine months of this year. In May, they reached a record monthly ship cargo turnover of 2.3 million tons.
A promising situation developed in the Slovenian insurance market as well.
For the first 10 months of this year, the volume of premiums increased by more than 117 million euros or by 7.5%. This is evidenced by the latest data from the Slovenian Insurance Association (SZZ). The sales of property and life insurance grew significantly.
Zavarovalnica Triglav, the largest Slovenian insurance group, collected 777 million euros in premiums over 9 months. This is 8% more than in the same period in 2016. At the same time, the Group achieved premium growth in all segments and countries where it is present.