Earnings Overview – Croatian Companies H1 2020

H1 of 2020 could be described as challenging for virtually all Croatian companies as the H1 results show full impact of lock-down imposed by the government due to the outbreak of the Covid-19 pandemic. As a result, the vast majority of Croatian companies observed both sales and net profit decreases, while roughly a third of the observed companies recorded a net loss. Tourism companies were quite affected by the halt in international and domestic travel, coupled with lockdowns of countries worldwide. Although Easter season revenues were lost in H1, these results are not indicative of their FY performance, as most of their revenues are derived in Q3. It is also important to note that most companies recorded unrealized FX losses as a result of the depreciation of HRK to EUR. Depreciation of currency was a market reaction to potential loss of summer season and inflow of foreign currency, but in the meantime the local currency depreciation trend subsided to a certain extent. On the flip side, TNG’s lower exposure to spot market and the improved market situation led to the best H1 in the company’s history.

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