Djuro Djakovic dd : Business Report on Đuro Đaković Group for January – June 2017

In the period from January to June 2017, Đuro Đaković Group achieved a total revenue in the amount of HRK 254.5 million and total expenditures in the amount of HRK 252.2 million, whereas net profit was HRK 2.3 million. At the same time, a positive EBITDA was achieved (profit before depreciation, financial revenues, expenditures and taxes) in the amount of HRK 17.8 million, i.e. 7.21% of EBITDA margin was achieved. It is important to emphasize that, compared to the previous year, EBITDA was improved by HRK 9.9 million, while the net result is better by HRK 13.5 million.

The total export of the Group in the period from January to June 2017 grew by HRK 57 million compared to the same period of the previous year, a growth of 97.4% was noted, i.e. there has been twofold increase in exports. The total revenue from exports in the first half-year of 2017 amounted to HRK 116.4 million, while in the same period previous year it amounted to HRK 58.9 million.

In Q2 2017, the Transport segment made the largest breakthrough on the market and increased the revenue by as much as HRK 51 million; the increase in revenue in this segment was fully realised by exporting to the markets of the European Union. Moreover, also certain smaller export jobs were made in the defence segment in cooperation with Patria and Kongsberg as the strategic partners of Đuro Đaković Group.

It should be emphasized that in Q2 of 2017 a positive EBITDA was achieved, which is a clear sign that the Group has reached sustainable business. With the achieved positive result, the Group realised the majority of its set business goals for the first two quarters of 2017.

Apart from what was achieved, one should emphasize that in Đuro Đaković Group there is still space for further improvements. This result has been achieved with very little participation in the total revenue of the most profitable Defence segment (participation in the revenue of only 5.63%). Furthermore, there is still space for significant improvements in the segment of Industry and energetics where additional restructuring measures have been carried out, the results of which are expected in the coming period.

On 30.06.2017, Đuro Đaković Group had signed contracts in the amount of HRK 638.1 million. Since the Group currently participates in several major tenders, it is expected that the contracted jobs during 2017 will further increase.