Monday , October 3 2022

The integration of Gorenje in Hiesense yields results


In the first half of 2019, Gorenje Group generated sales revenue of € 567.5 million, a little more (1.6 percent) compared to the first half of last year. In the main activity of household appliances they collected 523.4 million euros or 92.2 percent of all sales revenue. "We achieved growth mainly in the markets of Eastern Europe (Romania, Hungary, Czech Republic) and a little lower in Scandinavia, France and Spain. The unfavorable sales trends were mainly recorded in the markets of Russia, Germany and the Netherlands and with strong competition and price pressures, we met in key markets with the concentration of the largest customers (combining large retail chains), Gorenje, which belongs to Hizenze Group, recall, Gorenje publishes more than one hundred million euros of losses due to balancing the balance sheets.

The first synergies are already felt in the balance sheets

"The results of the Gorenje Group business in 2019 are still significantly influenced by the integration process of Gorenje Group in the Hisense Group, where we carry out a number of activities and measures to improve the efficiency and cost-effectiveness of operations. Reducing inventories and receivables, and a stricter credit risk management policy that is crucial in the long run to improve business has had a short-term impact on lower production volumes, "said Gorenje. Gorenje began generating savings at the expense of joint purchases, while Gorenje's sales network began selling products that were produced in other corporations' factories.

How the results comment on management

Executive Director of Gorenje Bye Leo: "We are glad that our efforts, both the owner and all employees, have produced positive results for several months, which shows that we are on the right track."

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