Termes Group’s Profit Increased to 80.3 Million Kuna

In 2012, Termes Group achieved a profit of 80.3 million kuna, representing a growth of 35.2 percent compared to the previous year, according to the consolidated financial report published by the company on the Zagreb Stock Exchange.

According to the report, Termes Group’s total revenues in 2012 amounted to 876.3 million kuna, an increase of 15.2 percent compared to 2011, while total expenses rose by 14.3 percent to 795.6 million kuna.

The operating result is a profit of 80.3 million kuna, which is a growth of 35.2 percent compared to the previous year. If the one-time negative impact of the sale of the confectionery business on last year’s results is eliminated, the net profit compared to 2011 is lower by 16.7 percent, noted Termes Group, which sold Kandit d.o.o. to Mepas from Široki Brijeg in May 2011.

Of the total revenue last year, Termes Group generated 82 percent from the sugar segment, 6 percent from milk production, 2.5 percent from pig fattening, while 9.5 percent was achieved from the sale of commercial goods.

The report states that the total planned production for 2012 was slightly over 115,000 tons of sugar.

A total of 11,175 hectares (ha) were contracted for sowing, from which a production of around 640,000 tons of sugar beet was expected, with a plan to produce about 85,000 tons of sugar from the beet.

However, due to unfavorable weather conditions in the second quarter, high temperatures, and lack of precipitation, the average yield was reduced by about 30 percent.

Additionally, at the beginning of September last year, the Republic of Serbia imposed a ban on the export of sugar beet, which reduced the amount of sugar beet, and consequently the production to 45,000 tons of sugar from beet.

Last year, 105,286 tons of sugar, 23,093 tons of molasses, and 9,930 tons of dry briquetted noodles were sold.

Investments in the sugar beet reception line, refinery, and other parts of the plant aimed at further reducing production costs and improving the quality of the final product, with a total value of 25.6 million kuna, have been completed, the report states.

According to the report, last year an average of 939 cows produced a total of 8.2 million liters of milk.

The consolidated report, along with the parent company Termes Group d.d., includes the Sugar Factory Osijek, the Dairy Farm Orlovnjak, the Pig Breeding Farm Lipovača-Prkos, Kandit Celje, and the Department Store Sjenjak.