In 2019, the Group recorded flat sales, an increase in EBITDA of 14% and a net profit decrease of 6%.
In 2019, Intereuropa recorded sales of EUR 160.35m, remaining relatively flat. The Group’s sales were 5.5% below the planned level, especially at the subsidiary in Serbia where in 2019 that company was still feeling the effects of the harmful conduct of the former executive staff in 2018. The company notes that the Group successfully stopped the trend of a declining average sales margin from previous years and recorded an increase in the average sales margin in 2019 by 0.2 p.p. YoY.
When observing operating expenses, labour costs amounted to EUR 28.9m, which is at the same level recorded the previous year, as were average labour costs per employee.
Other operating expenses amounted to EUR 3.7m, which is an increase of 8% compared to the 2018 adjusted figures and 5% higher compared to the reported figures. Other operating expenses were higher due to a case of fraud at the subsidiary in Croatia, where the embezzlement of funds was discovered at the end of October 2019. A forensic investigation was still ongoing at that subsidiary when the unaudited financial statements were compiled. For that reason, temporary estimates of the effects of fraud were recognized in other operating expenses in the amount of EUR 0.5m in 2019.
Intereuropa generated EBITDA of EUR 13.9m in 2019, representing an increase of 14% YoY, however 2.6% lower than planned. The increase in EBITDA could be attributed to IFRS 16, where the cost of depreciation of right-of-use assets under lease amounted to EUR 1.4m in 2019. Also contributing positively were revenues from the reversal of adjustments to the value of receivables due to the recovery of operating receivables that were several years old and impaired in full in the past. Such a result puts the EBITDA margin at 8.7%.
Operating profit in 2019 amounted to EUR 7.16m, representing an increase of 22% YoY. It is also worth noting that the revaluation of real estate in the amount of EUR 0.8m also had a net positive effect on operating profit.
In 2019, Intereuropa recorded a net profit of EUR 3.9m in 2019, a decrease of EUR 0.2m YoY, while EUR 1.8m lower than planned. Higher expenses from deferred taxes had a significant impact on the results.
