In the first half of 2020 the Zagreb Holding multi-utility conglomerate incurred a loss of HRK 139.6 million, as against a profit of HRK 65.5 million in the same period of 2019, shows a consolidated unaudited report released through the Zagreb Stock Exchange.

The group’s operating loss totalled HRK 103 million as against a profit of HRK 96.6 million in the 2019 H1, while the loss from financial activities was HRK 36 million, 17% or five million more than in the same period of last year.

The group’s operating revenue in that period was HRK 1.83 billion, 111 million or 6% less than in the first half of 2019, due to lower sales revenues, the report says.

Operating expenses amounted to HRK 1.93 billion, 89 million or 5% more than in 2019. Personnel expenses grew the most, by HRK 63 million to HRK 599 million.

In the first half of this year the group invested HRK 207.4 million in municipal infrastructure and improvement of services, 26.5% more than in the same period last year, and it also invested HRK 39 million in public buildings.

The first half of 2020 was marked by the coronavirus pandemic and the numerous measures that were introduced to protect the population and prevent the health system from collapsing. Apart from restricting movement, those measures have also affected economic activity due to a partial or full suspension of some activities, said Ana Stojic Deban, Zagreb Holding Management Board chair.

The strong earthquake that hit Zagreb on March 22 has additionally affected operating revenues as well as operating expenses, she said.

She noted that the group had adopted a set of measures to help alleviate the consequences of the epidemic and the earthquake for households and businesses.

In the period from March to the end of June, more than 200,000 citizens and businesses used some of those measures, which totalled around HRK 14 million.

At the end of June the group employed 7,877 workers.