Gorenje, which was recently acquired by China's Hisense, highlighted that upon eliminating the revenue of coal trade operations, divested at the end of 2017, the total revenue figure is on a par with that for last year's equivalent period.
The report moreover notes that the group generates most of its profit it the final quarter, with the consolidated profit target for the end of the year being EUR 8.1m.
Operating profit is meant to reach EUR 25.3m by the end of the year. It dropped 33.2% year-on-year in the first six months to EUR 9.7m. Earnings before interest and taxes (EBITDA) decreased by 3.5% to EUR 39.2m.
Gorenje generated nearly 84% of sales revenue in its core activity of home appliances. Revenue from sales under its own brands increased by 3.2% while there were fewer industrial deals.
The report speaks of a challenging first half year in the home appliance industry, with Gorenje's competitors also struggling with "harsh macroeconomic conditions, the volatility of some currencies, and relatively high raw material prices".
"In addition to stringent competition, sales in our core activity were also affected in many markets by uncertainty related to the search for a strategic partner", which had a role in deals with original equipment manufacturer shrinking by over a third.
Sales increased especially in the markets of Western and Central Europe, while they decreased slightly in Germany, the Netherlands, Russia, and Serbia.
In Australia, revenue was strongly affected by depreciation of the local currency, but global sales of premium appliances under the Asko brand increased by 9.4% nonetheless.
"We also boosted our sales in some markets of Eastern Europe, as well as in Brazil, Chile, and China," the report adds.
Gorneje spent EUR 23.7m on investments in the first half of the year, EUR 7m less than in the same period in 2017. Most went for equipment involved in the development of new products while the company also slightly increased investment in marketing.
The group on average employed around 11,000 people in the first six months, which is a 20% decrease. Labour costs were up 3.2% to EUR 124.9m. The company is mostly focused on reducing overhead costs.
