The Djuro Djakovic metal and mechanical engineering group generated a loss of 103.2 million kuna (€13.7 million) in 2021, nearly a 60 percent larger loss from 2020, when it was 65.3 million kuna (€8.7 million), showed the group's consolidated financial statement released on Monday.

The group’s total consolidated revenue amounted to 289.9 million kuna, which is 26.4 percent less year-on-year while total expenditure decreased by 14.4 percent to 393.2 million kuna. Sales revenue on the domestic market amounted to 78.5 million kuna, accounting for 27.33 percent of total sales revenue. Sales revenue on foreign markets totaled 208.7 million kuna, accounting for 72.7 percent of total sales revenue.

Normalised EBITDA amounted to 16.1 million kuna. Contracts have decreased, however, they are still satisfactory and amount to 271.7 million kuna, the group’s financial statement says. After the European Commission and government agreed a bailout of 300 million kuna, the group managed to stabilize its liquidity, the statement says.

Production processes have been optimized and operating revenue has been increasing, primarily from exports. A strategic partner is expected to eventually enter the group’s ownership structure, the company said.

“The European Commission approved the group’s restructuring plan in December 2021 and the competent authorities are expected to make the necessary decisions in line with the plan. Its success should ensure the long-term sustainability and stable development of the entire group,” the financial statement notes.

(€1 = 7.52 kuna)