Friday, 14th July 2017, Velenje

Gorenje's first half the best in the last five years; Management Board granted discharge from liability for 2016

Gorenje's first half the best in the last five years; Management Board granted discharge from liability for 2016

At the 24th Gorenje Shareholders Assembly, President and CEO Franjo Bobinac presented to the shareholders the Gorenje Group operations and performance in 2016 and the performance in this year's first six months, which bests any first half of the last five years in terms of both revenue and profit. The Group wrapped up the first half of 2017 with revenue of EUR 624 million, or good 7 percent more than last year, and net profit of EUR 4.4 million, which is more than double the figure from the corresponding period of 2016.

Home appliance sales were up 3.5 percent owing to favourable geographical structure and solid product mix, with growth in most of our key markets and for all Gorenje Group brands.

In the second half, we shall strive to accomplish our sales plans, especially in the highly competitive markets of Western Europe, while providing cost efficiency as we face mounting prices of key raw materials and components and labour cost pressures in Slovenia, Serbia, and the Czech Republic. We shall also continue to improve our working capital management, especially inventory, and continue our deleveraging efforts through the end of the fiscal year.

We are implementing a number of measures to counter the said negative aspects and developments, and therefore to reach the Group's budgeted goals and results in all key aspects.


Shareholders Assembly resolutions

Following the presentation by the President and CEO, the shareholders granted discharge from liability to the company Management Board and Supervisory Board for the 2016 fiscal year. Dividend will be paid out for the year amounts to EUR 0.10 gross per share.

The Shareholders Assembly appointed Karlo Kardov to the position of a Supervisory Board member.

In the interest of transparency, the Supervisory Board felt it would be a sign of good corporate governance to let the General Assembly know that the Supervisory Board, on 13 July 2017, unanimously decided to offer to the current President of the Management Board Franjo Bobinac to continue in its present position for the next term and asked him to provide an answer to this offer within fifteen days. The Supervisory Board concluded that stability in the position of President of the Management Board was in the best interest of the company and its shareholders at this time. Therefore, in case of acceptance, Bobinac will be reappointed President of Management Board on 28 July 2017 for the term from 20 July 2018 until 20 July 2023.

Business report for the first half of the year will be released after it is reviewed by the Supervisory Board on August 25, 2017.