Gorenje expects a significant drop in net profit at group level, down to EUR1.2m in 2017 from EUR8.4m in 2016, local RTV reported on Friday. Profit was largely hurt by price pressures, higher costs of raw materials and higher production costs. Still, the company reported a profit for the ninth consecutive quarter. Revenues from sales in Russia, Ukraine, the Netherlands, the Middle East, America, Asia and Australia were the main contributors to revenues.
Meanwhile, Gorenje expects net profit to rebound to EUR8.1m this year, while sales are projected at EUR1.33bn. The company is planning to increase the prices of selected products, improve production processes and cost effectiveness, reduce labor costs and improve labor productivity. In addition, Gorenje is seeking for a strategic partner to assist the company with improving cost efficiency and brand management. The company will continue to invest in development for which 3% of the group’s revenues will be spearheaded. Full details about Gorenje’s 2017 financial results will be posted on Mar 9.