CONSOLIDATED FINANCIAL BUSINESS RESULTS FOR THE FIRST THREE QUARTERS OF YEAR 2016
The total external sale of Tigar’s program for the period January – September 2016 is at the level of RSD 1,46 billion, of which 73% was achieved in export and by 15% higher in relation to the same period last year. The rubber footwear program still has the greatest share in export which amounts to 93%, that is, 994 million dinars. The sale of the Rubber footwear program is by 18% higher in relation to the same period last year, whereby export increased by 25% whereas there was recorded a decline in domestic sales by 2% in relation to the same period last year.
According to the CEO, Branislav Čurić, the most significant business indicators EBIT and EBITDA also continued their growth in the period January – September 2016.
’At the consolidated level there was stated operating profit (EBIT) in the period January – September 2016 in the amount of RSD 58,8 million, whereas in the same period last year there was recorded loss in the amount of RSD 11,4 million. Operating profit prior to amortization (EBITDA) amounts to RSD 179,9 million, whereas in the same period last year was recorded business profit prior to amortization in the amount of RSD 127,5 million.
The Conclusion passed by the Government of the Republic of Serbia as of 13.09.2016, whereby state creditors with share in equity are given approval and recommendation to convert the Company’s debt into equity, is essential for further business operations of Tigar a.d. as well as for the implementation of measures from the legally valid PPoR of Tigar a.d.
The process of implementation of the Conclusion is in progress, since it was necessary to reconcile the balances, make adequate decisions at the managing bodies and adjust the text of the contract on conversion prior to signing the contract on conversion.
The Company will resume negotiations with commercial creditors.
’Also worth mentioning is the published data of the European Commission on the import of rubber-plastic footwear in the European Union where Tigar a.d. ranks second in realization achieved for I – VI 2016, right after China, with the realization of 5,6 million euros. This represents the best data on export for Tigar a.d. in the last 5 years on the six-month basis. ’
When it comes to the settlement of obligations towards creditors, they are settled in accordance with possibilities. In the beginning of the implementation of the PPoR the settlement ran smoothly, however from the moment part of the principal became due the possibility for the settlement of obligations became difficult.
In the reporting period the Company’s management continued communication with the largest shareholders, creditors and representatives of the Government of the Republic of Serbia, as the largest individual shareholder, with the purpose of reaching accordance on key decisions for the Company, pursuant to the measures envisioned by the PPoR.’