Low Prices of Imported Milk and Cheese Reduced Dukat’s Profit by Nearly 72 Percent

Dukat’s net profit in 2017 amounted to 40.3 million kuna, which is 71.9 percent lower than in the previous year, according to the unconsolidated unaudited financial report of Dukat published on Friday.

During 2017, Dukat achieved business revenues of 1.77 billion kuna, representing a growth of 9.4 percent compared to the previous year.

>>>Dukat Group’s net profit last year was 133 million kuna, 68.6 percent higher than in 2015.

Sales revenues also increased by 9.8 percent to 1.76 billion kuna. Revenues from sales in the domestic market, which account for 85.1 percent of total sales revenue, amount to 1.49 billion kuna and are 9.6 percent higher compared to 2016.

In international markets, sales revenues increased by 11 percent to 261.6 million kuna, accounting for 14.9 percent of total sales revenue. Dukat’s business expenses last year amounted to 1.74 billion kuna, which is 10.7 percent higher than the previous year.

The report from Dukat states that 2017 was marked by economic growth and recovery of the domestic dairy sector.

>>>Dukat faced with rising risks and price pressures, profit 17.7 million kuna

– The increased influx of market surpluses at extremely low prices, primarily of long-life milk and semi-hard cheeses from non-EU markets and EU countries into Croatia, continues to represent one of the key problems of the domestic dairy sector, it is stated.

The year was also marked by the growing risk of continuing the placement of the production assortment and collecting receivables from one of the key customers, Dukat emphasizes, noting that activities continued in 2017 in the area of optimizing business processes and operating costs and increasing efficiency at all levels of business.

Dukat Group

Dukat Group achieved a net profit of 132.3 million kuna in 2017, a decrease of 2.5 percent compared to 2016. The Group’s consolidated business revenues amounted to 3.7 billion kuna, an increase of 9.5 percent, while business expenses rose by 9.7 percent to 3.5 billion kuna.

Dukat Group consists of the parent company Dukat d.d. and 14 associated companies based in Croatia, Slovenia, Bosnia and Herzegovina, Serbia, Macedonia, Kosovo, and Bulgaria.