Duro Dakovic published their FY 2018 results, showing a 14% YoY decrease in sales, EBITDA soared, going up three times to HRK 25m while the company’s net loss decreased by 21% YoY HRK -26m.
Duro Dakovic published their FY 2018 results yesterday, showing a 14% YoY decrease in sales, which amounted to HRK 451.5m. EBITDA soared, going up three times to HRK 25m while the company’s net loss decreased by 21% YoY HRK -26m. The main reason for such development lies in the exclusion of Duro Dakovic Industrijska Rjesenja from the Group’s consolidated result. This was due to the Management’s decision to abandon the unprofitable segment at the end of 2018. As a result, the negative contribution of the non-profitable segment is only visible as a loss from discontinued operations in the amount of HRK -18m.
Duro Dakovic’s performance was also negatively impacted by the underperforming freight waggon production segment. The segment was lagging was caused by several clients who requested technical changes which led to a temporary standstill of production. Afterwards the delay in deliveries of a complete quarterly wagon production for more than three months has caused major disruption in the rhythm of production and financing that could not be offset. Furthermore, the segment was initially limited when bidding for new deals by lower prices set by their competitors. However, note that as of Dec 31st 2018, the company’s order book held orders in the amount of HRK 633.5m
On the balance sheet Duro Dakovic increased their indebtedness to a net debt of HRK 293m (+13% YoY), which translates to a 11.6x net debt/EBITDA. However, note that Duro Dakovic received a loan of HRK 95m from the Croatian Bank for Reconstruction and Development in October 2018 which will be used to secure an adequate amount of working capital and to restructure the company’s debt. Government guarantees for the loan amount to HRK 76m, which represents 80% of the total loan amount.
