2.8 MEUR - Gorenje - Gorenje Group

Volume of Business Activities
5.4 %
increase in sales
With revenue amounting to EUR 1,288.1 mio in 2011,
Gorenje Group exceeded the previous year’s results by
EUR 66.2 mio or achieved a higher comparable level3
by 5.4 percent over 2010. If compared to the comparable
quarter of 2010, the sales volume generated in
the last quarter of 2011 grew by EUR 8.7 mio or +2.7
percent, showing an improvement in growth dynamics
from the third quarter of 2011.
The achieved geographical and divisional structure
of sales indicates that:
� with the integration of the Asko Group, Gorenje
Group increased its share of sales in West Europe
and the rest of the world (USA, Australia) mostly in
sales of higher price segments,
� the Gorenje Group had reduced sales volume
in geographic areas with higher returns (South-
Eastern Europe and East Europe), which was also
affected by the elimination of transactions of the
Energy segment, and
� by lowering the share of sales of the Ecology, Energy
and Services Division (again with the elimination
of the Energy segment), the Gorenje Group
relatively strengthened its sales profitability (due to
The Management Board of the company Gorenje, d.d.
the nature of the division’s activities the level of the
gross margin is lower from the one achieved with
activities of the Home Appliances Division).
Compared to the previous year’s results and prior to the
Asko Group effect (comparable) the Home Appliances
Divisions generated EUR 8.2 mio or 0.9 percent more
revenue than in 2010. Total sales growth, including the
Asko Group effect, amounted to EUR 76.0 mio or 7.8
percent. Poor comparable sales growth is the result of
reductions in the scope of activities due to significantly
low demand in the third and fourth quarters of 2011,
and a declining geographical and product sales structure
in particular in South-Eastern Europe, East Europe and
the Near East. As for other markets, the Gorenje Group
achieved at least the same or higher sales growth compared
to 2010, which neutralised the negative effects of
the sales volume decline in previously stated markets.
The sales volume recorded in 2011 by the Home
Interior Division was again lower than the previous
Table 29: Revenue by divisions
ANNUAL REPORT 2011
period’s result. It should be emphasised that the growth
achieved in the third quarter of 2011 was positive for the
first time in two and a half years, and the sales volume of
the last quarter was at practically the same level of the
comparable period in 2010. Such movement in annual
sales is yet the result of recession-hit business in the production
and sales of furnishings, production shortfall in
the bathroom segment during its move to Serbia, lower
production in the Czech Republic and Ukraine, and
the result of planned supply cuts to certain high credit
risk consumers. Considering the forecasts and planned
reorganisation in 2012, the division is expected to show
its first significant improvements in activities and profitability
already in the first year of restructuring.
The highest comparable sales growth in 2011, with EUR
59.5 mio or 21.7 percent, was recorded by the Ecology,
Energy and Services Division based on increased
operations by the Ecology segment and the sale of coal
relating to the parent company.
in MEUR 2011 2010 Q4 2011 Q4 010
2011
Comparable
2010 Q4 2011 Q4 2010
Home Appliances
Division
1,055.8 979.8 291.6 298.7 921.7 913.4 261.4 257.0
Home Interior Division 32.9 34.4 7.2 7.6 32.9 34.4 7.2 7.6
Ecology, Energy and
Services Division
333.5 368.0 63.3 110.1 333.5 274.0 63.3 58.6
Gorenje Group 1,422.2 1,382.2 362.1 416.4 1,288.1 1.221.8 331.9 323.2
3 Comparable level hereinafter represents values prior to effects of the integration of the Asko Group and after eliminating the impact of the excluded (sold) company Istrabenz Gorenje and its subsidiaries in both observed periods (for details refer to Point
5.1 hereunder “Events that have an impact on the interim comparability of information in the financial statements”).
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