Thursday, 24th April 2008, Velenje, Slovenia

Gorenje in the first quarter increased the profitability for one fifth

At the 18th meeting, held on 24 April 2008, the Supervisory Board of Gorenje, d.d., adopted audited Annual Report of Gorenje, d.d., and the Consolidated Annual Report of the Gorenje Group for the Year 2007, and confirmed the proposal for the application of the balance-sheet profit for the year 2007.

18th Supervisory Board Meeting of Gorenje, d.d

The Supervisory Board has valuated the business performance as satisfying, on account of another record-breaking volume of Gorenje Group sales and net profit. The Supervisory Board adopted the Report on the revision of Annual Report, which will be submitted to the Annual General Meeting. On Today’s regular Meeting, the Supervisory Board of Gorenje, d.d., Velenje, has been informed about the estimated first quarter 2008 results of the Gorenje Group.

Gorenje Group increased the revenue from sales on comparable basis by 7.5 %

Gorenje Group revenue from sales amounted to EUR 303.7 million, what is 3 % lower as in the first quarter 2007 and is not fully comparable with revenue achieved in 2007, due to the fact that the revenue from 1Q2007 included also the revenue from the dispose of the company APC GmbH from Austria. With the comparable data’s revenue increased by 7.5 %

Gorenje Group increased the net profit by 21.5 %

First quarter 2008 net profit amounted to EUR 5.35 million, and represented an increase of 21.5 %.
The improvement of the profitability was driven by the improved sales structure of the products within the Household Appliances Division, increased productivity and by the effective managing of cost of goods, materials and services. All that also improved EBITDA Margin, which is higher by almost 1 percentage point than from planned one.
The sales of Gorenje home appliances grew in the first three months on the European markets rather moderate, the fastest in Eastern Europe, specially to point out still Russia and Ukraine, following Czech Republic, Slovakia, Serbia and Slovenia.   

2008 first quarter results of the Gorenje Group and of the company Gorenje, d.d., Velenje, Slovenia, will be published on 27 May 2008.

The Supervisory Board Report of the company, the Summary of the Annual Report for the Year 2007 and the Annual Report in Slovene language, were published at the SEOnet electronic system on 24 April 2008.

Gorenje, d.d.,
The Management Board