The Group states that they will reduce their debt in the future period and finance their operations, which they will achieve by increasing cash flows from operating activities and employing a more effective working capital management.
Intereuropa Group issued their summary of the Strategic plan for 2018 – 2022.
According to the document, Intereuropa Group succeeded in ensuring financial stability and focusing on the development of their core activity during the previous strategic period, despite a high level of debt and the limitations set out in the financial restructuring agreement. The Group also states that they will reduce their debt in the future period and finance their operations through the optimal combination of equity and debt sources, which they will achieve by increasing cash flows from operating activities and employing a more effective working capital management. The sale of non-core assets will be another important source for reducing debt. Note that their Net debt/ T12 EBITDA is currently at 4.8.
They further state that in the context of favorable economic conditions, the Group increased their focus on customers, and ensured the Group’s further growth in the majority of products and markets. When it comes logistics products, the development of the Intereuropa Group’s core activity of logistics services until 2022 will be based on the land transport, intercontinental transport
Furthermore, the Group sees growth potential on the majority of existing markets where it is present through their subsidiaries. The Group focuses on the markets of the former Yugoslavia. Further expansion to major markets in South-Eastern Europe is also possible.
Turning our attention to the Group’s strategic objectives, Intereuropa plans to invest a total of EUR 36.8m for the period 2018 – 2022. which will be used for increasing warehousing capacities and technological advancements.