Alfa Plam sales revenue up 26%

The sales of Vranje-based manufacturer of furnaces and stoves jumped 26% to 576 million dinars in the first three months of this year compared to the same period of 2013, Alfa Plam said in a release published on the website of the Belgrade Stock Exchange.

The surge led to an increase in total revenues by 11% to 891 million dinars. However, due to the jump of the biggest item in operating expenses, cost of materials by 18% to 620 million dinars, Alfa saw operating loss (EBIT) of 11 million dinars in the same period. Operating profit excluding depreciation and amortization (EBITDA) amounted to 27 million dinars, a decrease of 37% compared to 1Q 2013. Finally, due to the decline in financial expenses by 91% to only 4 million dinars, profit before tax (EBT) jumped 9 times to 27 million dinars.

Financial expenses decreased as a result of plunge in foreign exchange losses, from 35 to 2 million dinars yoy, which means apparently that a relatively stable exchange rate in 1Q of 2014 went in favor of the business. The company has also paid off almost all loans (both long term and short term), and only short-term credit debt in small amount of 0.6 million dinars has left on the balance sheet, Sinteza Invest Group writes.

Shares of Alfa Plam which are listed on the Belgrade Stock Exchange Standard Listing market, has recorded an increase of 12.1% since the beginning of the year, while at the latest price of 14.067 dinars market value of the company stands at 2.5 billion dinars (21 million euros). Total number of shareholders amounts to 601.