Zagreb Holding ends the first half of the year with a loss of 21.02 million euros

The Zagreb Holding Group recorded a loss of 21.02 million euros in the first half of this year, compared to a profit of 724 thousand euros in the same period last year, according to the consolidated financial report published on the Zagreb Stock Exchange.

The loss was primarily due to the inability to submit a request for compensation for the difference in gas prices in the period after April 1 of this year, amounting to 27.4 million euros, as stated in the Management’s commentary.

In the first half of the year, operating revenues amounted to 418.52 million euros, which is an 11 percent increase compared to the same period last year. Sales revenues reached 304.37 million euros, up one percent, while other operating revenues were 114.14 million euros, representing a 55 percent increase.

The most significant increase in sales revenue, as noted in the Management’s commentary, was recorded in the segments of cleanliness maintenance and waste collection, landscaping and maintenance of green areas, and pharmaceutical sales.

A significant decrease in sales revenue was recorded in the gas sales and distribution segment (by 18.23 million euros) due to lower delivered quantities of gas and a drop in the sales price of gas for households from April 1, 2024, as well as a decrease in the market price of gas for businesses, the report states.

The increase in other operating revenues mainly relates to financial support from the City budget for purposes approved by the Zagreb City Assembly and state subsidies based on the Regulation on amendments and supplements to the Regulation on the removal of disturbances in the domestic energy market related to compensation for the difference in the purchase and sales price of gas.

The Group’s operating expenses amounted to 427.33 million euros, which is a 17 percent increase compared to the same period last year. This increase, as noted, is a result of rising costs of goods sold amounting to 51.59 million euros, primarily at GPZ-O due to the increase in the purchase price of gas for public services from April 1, 2023, and at the City Pharmacy Zagreb.

Costs of communal services and fees increased due to the transfer of bio-waste to an external processor and higher costs of plastic recovery. Personnel costs increased by 15.6 million euros, influenced by increases in material rights from collective agreements of ZGH and its subsidiaries, as well as a five percent increase in the average number of employees.

– Despite the challenges, Zagreb Holding maintains a stable direction in 2024, with further plans to improve operational and financial performance while continuing to contribute to sustainable development and enhancing the quality of life in the City of Zagreb – emphasizes the commentary from the Management of Zagreb Holding.