ANNUAL REPORT 2008 - Gorenje Group

73
Costs of goods, materials and services accounted for 75.2 % in the structure of gross total income,
which is 0.7 percentage point less than in the year 2007. Their value amounted to EUR 1,027,908
thousand, which is an increase of 2.3 % over the year 2007.
The growth in the costs mentioned was slower than the growth in gross total income and revenue,
which is mainly a result of restructuring of sales range, replacement of expenses components with
less expensive ones from other raw material markets and forward purchases of raw materials.
Added value achieved EUR 322,793 thousand (98.9 % of the annual plan achieved), which is a 23.6
% share in the structure of gross income. When compared to the year 2007 it increased by 5.6 %.
The growth quicker than the growth of consolidated sales revenue is a consequence of the lower
growth in costs of goods, materials and raw materials. Added value per employee amounted to
EUR 28,236 thousand and thus increased by 5.9 % over the year 2007.
7.6
80
as % in gross
operating yield
7.2
6.8
7.0%
6.9%
60 EBITDA
(in mil. EUR)
40
6.4
20
92.9
94.0
2007 2008
Earnings before interest, taxes, depreciation and amortisation (EBITDA), increased by 1.2 %.
A minimal increase in costs of goods, materials and services compared with the scope of business
activities had a favourable influence on the growth.
Labour costs had a strong negative influence (harmonisation with the employment legislation and
amortisation/depreciation expense. Otherwise Atag, the company taken-over had a very favourable
influence on the operating profit of the Group.
Total profit or profit before taxation achieved 52.6 % of the profit earned in the year 2007. Due
to the negative influence of the growth of financial movements the total profit did not follow the
growth of EBITDA. Impairment of investments in accordance with the IFRS, increase in interest expenses
due to the increase in reference interest rates in the first ten months of the year and higher
borrowings materially contributed to the higher negative result of financial movements. Due to
the impairment of East-European currencies in comparison with Euro foreign exchange gains and
losses from revaluation of receivables and liabilities had a negative influence on the result of financial
movements.
Net profit was lower than the total profit due to the higher taxation of profit and was lower by 57.0
% over the year 2007. The earned profit is also by EUR 7.6 million lower than the profit evaluated
at the beginning of November 2007 that was included in the plan documents of the Group for the
year 2009. An important part of deviations is a result of influences of the global financial and economic
crisis in the last two months of the year 2008 that caused material impairment of operating
profit efficiency in some of the companies operating in the area of West and South-East Europe
(the net effect amounts to EUR 3.4 million).
An increase in negative result of the financial result of financial movements of the last quarter had
a material impact on the low level of operating profit efficiency of the Group. By the impairment
of investments, foreign exchange losses and their hedging the operating profit was worsened by
a net effect of EUR 4.2 million