Volume of Business Activities of HI Division

Revenue of the Home Interior Division achieved a lower value than in the year 2010; it amounted to EUR 32.9 mio and was by EUR 1.4 mio or by 4.2 percent lower. It should be emphasised that the growth achieved in the third quarter of 2011 was positive for the first time in two and a half year, and the sales volume of the last quarter was at practically the same level as the comparable period in 2010. Such movement in sales in the period is yet the result of recession-hit business in the production and sale of home interior furniture and the planned lowering of supplies to certain high credit risk consumers.

Lower sales are attributed to the following events: (1) relocation of the production of sanitary equipment to Serbia, in which the production of this programme was partially discontinued in the second half-year of the year 2011 and (2) winding-up of the subsidiaries in the Czech Republic and Ukraine, which results in a significant reduction in sales in both countries. The Division succeeded in replacing only a part of this reduction by higher sales in the Furniture programme.

Considering the forecasts and planned reorganisation in 2012, the Division is expected to show its first significant improvements in activities and profitability already in the first year of restructuring.