Annual report 2005 - Sava dd

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In 2005 the company Sava Trade d.d. created net sales
revenues in the amount of €54 million, which was 4 per
cent less than last year. The generated profit totalling
€2.2 million was 33 per cent above last year’s figure and
mainly produced by selling real estate.
Incorporating the company in the Merkur Group with a
similar sales programme will facilitate an improvement
in the strategic market position, an increase in the
common market share and exploiting synergistic
benefits due to both economy of scale and pooling and
utilising the best knowledge and business models that
companies with a long-standing tradition have available.
| b u s i n e s s a n a l y s i s |
The company MG Market d.o.o. did not substantially
improve its business performance. Net sales revenues
totalling €43.8 million were in fact 6 per cent higher
than last year. However, this was not sufficient for a
positive result. Too great dependence on the franchise
partner, long-term rental contracts for OBI centres and
keen competition by new centres with similar sales
programmes were the reason for a loss totalling €0.03
million, which, however, is much lower than last year.
The strategic restructuring plan of the Trade division
includes selling a stake in the company MG Market
d.o.o. too.