For today we decided to present you with ROE and capital structure of regional industrial companies.

For this we used H1 2020 results. Note that Đuro Đaković has been excluded as the company currently operates with negative equity, as a result of accumulated losses.

Among the selected companies, Ericsson NT recorded the highest ROE of 19%, which is particularly interesting as the company is majority equity funded. Besides that the company operates with negative net debt. We note that all companies beside AD Plastik operate with a negative net debt.

ROE of Selected Companies (H1 2020)

Cinkarna Celje comes next with a ROE of 11.3%, while the company is 92% equity funded.

Of the Serbian companies, 2 are practically entirely equity funded (Alfa plam and Messer Tehnogas), while Jedinstvo and Metalac operate with some debt but are also predominantly equity funded.

Of the observed companies Končar recorded the lowest ROE of 2.7%, which could be attributed to a sharp decrease in net profit in 2019 (-55.8%). As a reminder, the company’s share of profit from undertakings with participating interest decreased by HRK 34.34m to HRK 13.71m. The mentioned drop mostly came on the back of a lower performance of Končar – Energetski transformatori in which the Group has a 49% stake. Since then Končar has recorded two solid quarters, with H1 net profit to majority increasing by 180%.

Capital Structure of Regional Industrials