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Serbia's Delta Holding sees 2014 operating profit jumping 58% to EUR 57.8mn, eyes acquisitions

February 13, 2014



Serbia's Delta Holding said on Feb 12 it is estimating its operating profit will jump to EUR 57.8mn this year from EUR 36.6mn in 2013. It also hopes to see its overall turnover rising 14% to EUR 665mn.

The company said last year was the most difficult one since it was founded in 1991. It however did not give comparative 2012 figures in the brief statement posted on its website regarding its financial performance in 2013.

According to older data, the holding's turnover stood at EUR 630.5mn and if this figure has not been revised, it means the turnover declined some 8% in 2013, which probably affected negatively last year's profitability as well. The company initially targeted to raise its turnover to EUR 700mn in 2013.

Delta Holding now says that the entire turnover of the holding members reached EUR 583.5mn last year with the largest contribution made by Delta Agrar Group (38%) and insurer Delta Generali (20%). On the other hand, the largest contributors to the 2013 operating profit were Delta Real Estate Group with a 38.3% share and again Delta Agrar Group with 33.8%.

Delta Holding also said it paid EUR 87.1mn of taxes to the state budget last year.

The holding is one of the largest companies in Serbia in terms of revenue. Together with its member companies it is involved in various sectors including agribusiness, retail, real estate development, food processing, wholesale distribution, automobiles, sports equipment, fashion, financial brokerage and insurance services.

RETURNING TO RETAIL SEGMENT; IN TALKS ON NEW ACQUISITIONS/ASSET SALE

Delta Holding president Miroslav Miskovic announced at a news conference on the group's 2013 financial results on Feb 12 the possibility of returning to the retail segment this year, news agency Beta reported. He also said the company will hire 500 workers in 2014, which is twice higher compared to last year.

"In 2014 Delta Holding will be active in buying and selling companies," Miskovic said without providing details, adding only that "active talks have been underway" on such deals.

According to him, Delta Holding's development has been based not on operating revenue but on earnings for buying and selling companies. The holding's largest deal so far must be the sale of retailer Delta Maxi to Belgium'sDelhaize Group for close to EUR 1bn in 2011, via which the group exited the retail segment.

Miskovic said that in the past 10 years Delta generated EUR 1.5bn revenue from selling companies from its portfolio versus only EUR 500mn revenue from exports in the period. He added the company improved Serbia's foreign exchange balance by EUR 200mn annually in the past decade.


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Source: IntelliNews - Weekly Reports


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