In six months, a loss of 98.18 million kuna

Nexe Group recorded a loss of 98.18 million kuna in the first half of the year, which is an increase in loss compared to the same period last year when it amounted to 37.3 million kuna, according to the consolidated financial report of the company published on the Zagreb Stock Exchange.

The decrease in the volume of products sold, the selling prices of part of the assortment, as well as the increase in interest rates in the financial market and the impact of currency risk reflected negatively on the business results of Nexe Group in the first half of the year, as stated in the financial report. Total revenues of Nexe Group in the first half of the year amounted to 549.6 million kuna, a decrease of 17.9 percent compared to the same period last year. The majority of total revenues were generated from the production and sale of cement, concrete, concrete elements, aggregates, lime, and brick products. A smaller portion of total revenues comes from other activities such as winemaking and viticulture, livestock farming, transport and car sales, hospitality, etc. Business revenues of Nexe Group amount to 515.2 million kuna, marking a decline of 12.8 percent. The decline in business revenues is largely a result of decreased business activities due to the economic crisis, which is most reflected in the construction sector in the region, as noted in the explanation of business results.

It is also emphasized that the decline in business revenues is a consequence of decreased business activity in the market of Bosnia and Herzegovina and other markets (Hungary, Romania), and a significant impact was also caused by an extended period of adverse weather conditions, which led to a delayed start of construction activities. In the first half of the year, there was a revenue decline in the Croatian market by 31 percent, in the market of Bosnia and Herzegovina by 16 percent, and in the market of additional activities by 18.8 percent, while the Serbian market recorded a growth of 35 percent and other markets by 55 percent. In the overall revenue structure, revenues generated in the Croatian market account for 54 percent, Serbia 20 percent, Bosnia and Herzegovina 12 percent, additional activities 11 percent, and other markets 2 percent. Total expenses of Nexe Group in the observed period amounted to 642.1 million kuna, a decrease of 6.8 percent. The reduction in expenses is a result of cost optimization policies, reduction of personnel costs, and restructuring of business processes. (H)