ANNUAL REPORT 2008 - Gorenje Group

72
2008
3.14 ANALYSIS OF BUSINESS
PERFORMANCE OF THE GORENJE
GROUP
OPERATING CONDITIONS IN THE YEAR 2008
A key characteristic of operation was worsening of operating quality of the Group in the conditions
of the global financial and economic crisis that importantly contributed to the decline
in scope of business activities in the last quarter of the year 2008. The reduction in the large
number of November and December orders when compared to the anticipated scope is the main
reasons that the assessment of net profit changed to the end of the year, which resulted in the
non-achievement of the objectives planned.
ACHIEVEMENT OF OPERATING OBJECTIVES AND ANALYSIS OF ACHIEVEMENT
CIRCUMSTANCES
The management board of Gorenje, d.d. has assessed that the Gorenje Group continued to increase
its sales revenue and EBITDA in spite of difficult conditions, especially in the last quarter
that was the most difficult in the history. Minimum growth of business activities and low utilisation
of production capacities resulted in profit that is lower than in the year 2007, at the level of the operating
profit and at the level of net profit .
In thousand EUR 2008 Plan 2008 2007 2008/Pl.2008 2008/2007
Consolidated revenue 1,330,753 1,300,352 1,293,438 102.3 102.9
Gross operating yield 1,367,456 1,319,415 1,323,973 103.6 103.3
EBITDA 94,014 100,736 92,857 93.3 101.2
Total profit 15,473 31,503 29,400 49.1 52.6
Net profit 10,181 26,503 23,664 38.4 43.0
Average no. of employees 11,432 11,522 11,456 99.2 99.8
In spite of difficult operating circumstances the Gorenje Group reached the growth in the scope of
activities, which is the positive impact of the company Atag taken over in July (its scope of sales
from the month of take-over on amounted to EUR 72.7 million and EBITDA to EUR 8.7 million. The
exceeding is mostly a result of increase in revenue of the Ecology, energy and services division, but
the scope of operation in the Home Appliances Division and Home Interior was below the level of
a comparable year. This is mostly the influence of the financial crisis and recession on the sales volume
in the last quarter of 2008.
Revenue per employee
in 000 EUR
116
112
108
112.9
116.4
1200
900 Revenue in mill EUR
600
104
300
1,293.4
1.330.8
2007 2008
Revenue per employee exceeded the revenue of the year 2007 (by 3.1 %) and the revenue anticipated
for 2008 (by3.1 %).