The largest hotel and tourism company in Dubrovnik, Dubrovnik-Babin Kuk, ended the first half of this year with a net loss of 15.79 million kuna, which is 2 percent less than in the same period last year and 24% less than planned, according to the financial report of the company from the Zagreb Stock Exchange.
According to the financial report from the Stock Exchange, total revenues of Dubrovnik-Babin Kuk increased by 10.4 percent in the first half of this year, reaching 45.06 million kuna, alongside a simultaneous increase in total expenses by 7 percent, to 60.9 million kuna. The majority of Dubrovnik-Babin Kuk’s revenue was generated from sales in foreign markets, with these revenues amounting to 37.98 million kuna, which is an increase of 6.3 percent compared to the first half of last year, while domestic sales recorded a stronger growth of nearly 97 percent, reaching 5.24 million kuna.
Of the total expenses, the largest portion, or 56.04 million kuna, related to operating expenses, which increased by 10.6 percent. Material costs rose by 12.5 percent (to 14.3 million kuna), personnel costs by 14.4 percent (to 21.47 million kuna), while other costs from core activities increased by 24.42 percent (to 7.54 million kuna). The management explains the increase in operating expenses and other costs in the report’s commentary as being due to higher severance pay costs and increased costs for utilities and fees related to approved investment loans. Since the end of May this year, in addition to four hotels and a campsite, Dubrovnik-Babin Kuk also operates the company Pogača Babin Kuk, which is engaged in the production of bakery and pastry products, jointly established with a 50 percent stake each with the company Čakovečki mlinovi.
