Zagreb Holding Group’s business results in 2021

April 29, 2022 - The Zagreb Holding Group announced today its business results for 2021.

Earnings in 2021 before interest, taxes, depreciation and amortization (EBITDA) amounted to HRK 230 million and were HRK 77 million higher than in 2020, before the adjustment of one-off items for 2020 and 2021. The increase in EBITDA means that a recovery is visible and that the business trend is reversed in a positive direction. 

However, the Group’s total result for 2021, including corrections and one-off items, amounts to a loss of HRK 794 million, which is HRK 325 million more than in 2020. Revenues for 2021 amount to HRK 4,026 million, while expenditures amounted to HRK 4,731 million.

The achieved result was significantly affected by macroeconomic changes, primarily a significant change in gas prices. In addition, the result of operations was affected by provisions for severance pay of employees to be determined as surplus, and the review of the level of recoverable amount of assets and the adequacy of liabilities and business models of the Group. As a result of the aforementioned review, business expenses for 2021 were increased in the amount of HRK 523 million and HRK 182 million for 2020.

During 2021, the Group reduced receivables from customers and related parties by HRK 213 million and repaid HRK 347 million to financial institutions on the basis of received loans and financial leasing. During 2021, the Group had reduced investment activities due to limited financial resources, and HRK 288 million in investments were made, which is HRK 197 million less than in 2020. 

Overall, despite the negative business result, the analysis of the results shows that the long-term negative trends in business have been reversed and that activities and measures started in the second half of last year lead to ambitious goals that the Group plans to achieve this business year. 

More detailed information on the results of the Zagreb Holding Group’s operations in 2021 is available in the annual report.