For today we decided to look at EBITDA and net profit margins of Slovenian companies, for which we used 2019 figures.
Earlier this week we presented you with EBITDA and profit margins of Croatian companies, so for today we decided to present you with the same for Slovenian companies. Note that financials (NLB, Triglav and Sava Re) were excluded from the analysis.
It is important to note once again that comparing the margins across the selected companies is not necessarily the best way to do the comparison as many companies operate in different industries. Since both EBITDA and profit margin reflect to a great extent the industry in which the company operates in, we advise to compare it to the peer average or median. Nevertheless, it is still worth seeing which Slovenian companies are more profitable and therefore have more “room” to potentially reduce the prices of their goods or services if needed, while still remaining a higher level of profitability.
EBITDA margin (%)
Profit margin (%)
As visible from the graph, Telekom Slovenije operates with the highest EBITDA margin of 30.1%, which is expected given that Telecoms tend to have a relatively high EBITDA margin. Krka and Cinkarna Celje follow, with EBITDA margin of 25.8% and 21.2%, respectively. Petrol comes last with 4.5%.
When looking at the profit margins, Krka operates with the highest margin (16.4%). On the flip, side Telekom Slovenije recorded the lowest profit margin in 2019, of only 0.2%. However it is important to note that such a low margin could be considered as a one off for Telekom Slovenije given that in 2019 the Group recorded a net financial loss of EUR -28.14, compared to EUR 15.97m. Such a result could be attributed to two key reasons. The first one is that in 2018, finance income from the equity holdings was higher due to the sale of Blicnet, while the second one is that in 2019 other finance expenses include a loss of EUR 17.6m on the acquisition of a 34% minority interest in Planet TV (former Antenna TV SL), claimed on the basis of an arbitration award in the proceedings between Telekom Slovenije and Antenna TV SL Slovenia B.V.
