M San Grupa with lower profit than last year

The domestic and regional distributor and manufacturer of electronic devices and equipment M San Grupa ended the first half of the year with a post-tax profit of nearly 21 million kuna, which is 37.7 percent less than in the same period last year, according to the financial report of the group announced on Tuesday.

M San Grupa’s business revenues in the first half of this year increased by 13.2 percent compared to last year, reaching 1.42 billion kuna, which was accompanied by a 14.2 percent increase in business expenses, to 1.38 billion kuna.

Commenting on the business performance, the CEO of M San Grupa Miroslav Huzjak emphasizes that despite all economic and geopolitical challenges in the first half of 2022, they achieved revenue growth, which is in line with the company’s business plan.

– The group has entered strategically new areas of distribution where high growth rates are expected in the coming years, while we have also maintained our leading position as a distributor in Croatia and grown in all countries of the region – adds Huzjak in the report.

By business divisions, the largest growth in the first half of 2022 was achieved in their own brands, particularly in air conditioning units, where Huzjak states that they are market leaders as a group.

They also experienced growth in small household appliances, televisions, and in the sales of white goods and heat pumps, for which he notes that demand is constantly increasing due to rising energy prices.

On the other hand, for the division of classic distribution of consumer electronics and IT products, Huzjak reports a slight decline in sales compared to the first six months of last year, as well as in laptops, which they expected due to large shipments in the first half of last year, driven by pandemic business and living conditions.

Demand for desktop computers, monitors, and printers, however, is rising in 2022 due to, as he explains, a visible increase in corporate investment in office equipment.

In the report, Huzjak also reflects on the 'green division' they are developing in three parts – electric bicycles, scooters, and motorcycles, producing bicycles and products in Croatia, and they are also developing solar systems for which demand is also increasing.

They are investing in the development of young professionals whom they hire directly upon graduation, but they also emphasize that, for example, in logistics, they hire from other countries.

– The cost of all, especially skilled personnel, is becoming significantly more expensive, which needs to be taken into account when planning costs – says Huzjak, noting that they are also aware of new challenges such as inflation and the dramatic rise in energy prices, which has also affected the increase in business costs.