For today we decided to look at EBITDA and net profit margins of Slovenian blue chips.

For this we used H1 2020 results. 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.

As visible from the graph, 4 out of 5 observed companies have a double-digit EBITDA margin, with Krka leading the list (34%). Next comes Telekom Slovenije with 32.1%. Such results are expected given that Pharma companies and Telecoms tend to have a relatively high EBITDA margin. On the flip side, Petrol operates with a H1 EBITDA margin of 5.1%.

When looking at the profit margins, Krka operates with the highest margin (19.9%), while Petrol has the lowest profit margin of 2.4%.