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Sep 05. 2013

During the period April - August, the realization of Tigar AD amounts to more than RSD 1.2 billion - roughly about EUR 11 million, out of which 6 million were realized in exports. Within the overall exports, rubber footwear is represented by 83%, and rubber technical goods with 10%. Total external revenues of the company, which in July amounted to RSD 232 million in August rised to a level of RSD 280 million, while the average monthly sales of Tigar in the first half of the year was RSD 196 million. The average monthly sales in the last three months was at the level of RSD 253 million, which means that sales in August was for 10% higher than last year's average and the last three months of this year.

In the period from April to August, the company has provided RSD 361 million for salaries and employee contributions; settled down RSD 176 million of liabilities toward old suppliers, and on behalf of financial obligations toward the banks was paid RSD 120 million. For the purpose of financing the current production in the considered period was allocated RSD 600 million.

With regard to auditors’ restrained opinion, on the occasion of adoption of the financial statements for the year 2012, the Supervisory Board and the General Assembly of Tigar a.d. made a decision to correct such financial statements. This entailed an extraordinary inventory as of April 30th and impairment and write-off of inventory, where there were reasons to do so, which led to increasing business losses, and a decrease in property and capital of the company.

The height of performed corrections was about RSD 2.2 billion, and that is the amount for which was also adjusted the financial result in a negative sense and therefore made a reduction of the company’s capital.

According to Djordje Dzunic, Director of Accounting Function, adjustments to inventory, accounts receivable and investments are related to the multi-year period since 2012 and to years back, because at that time there were not made management decisions on the performance of corrections, even though there existed more than real basis for that.

- The adopted six-month financial statement was also negative, as in the first quarter business activities were at a very low level. The consolidated net loss of RSD 626.7 million came as a result of the operating loss of RSD 319.4 million and of the financial loss of RSD 311 million. The loss was recorded in all three manufacturing entities. Accumulated loss has already severely reduced capital of the company and reduced it to about RSD 600 million – said Director of Accounting Function.

During the second quarter of this year, within the rubber footwear factory was increased the production volume by 4 and a half times and in the rubber technical goods plant for nearly 2 and a half times, and the uptrend continued in the third quarter, said Ivan Mijalkovic, Executive Director for Production. In terms of capacity utilization, it was increased from ten percent in the first quarter to nearly 70% - Rubber Footwear and for 70% in Tigar Rubber Technical Goods.

- During the period April – August, Tigar Rubber Footwear Plant records 20 visits of foreign buyers. Berner, Ilse Jacobsen, Dechatlon and others have visited a rubber footwear factory, primarily to confirm the fact that production had started, and later followed specific requests. During the visit of the Managing Director to a Slovakian company Novesta, there was taken an initiative for the establishment of strategic cooperation which then followed by a return visit and agreed frameworks and business cooperation. As for the second half of September are agreed visits to the big buyers from Italy - Batistini, Patrizia and to a company Maresca, which once collaborated with the rubber footwear plant, Mijalković said, adding that the confidence of customers and suppliers is slowly returning.

Company’s representatives emphasize that the second quarter was significantly better, especially the first two months of the third quarter, and that if this trend continues, by the end of the year we should expect even better results with all taken measures and actions to reduce costs and further optimization of business, which is inevitable.

Corporate Communication Center
Tigar a.d.


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