Evaluation of the operations of the group - 2014

In 2014 in the cumulative profit and loss statement of the group the net sales revenue was HUF 10 155 913 Th and other revenue was 361 507 Th, whereas in the consolidated profit and loss statement of the group the consolidated net sales revenue was HUF 8 981 089 Th and other revenue was HUF 314 445 Th.

There is a decrease of more than 10 % compared to the previous year, however the lower sales revenue resulted from contracts having a better margin therefore the trading profit figure has doubled compared to the previous year. 74.8 % of the net sales revenue came from exports, while 25.2 % from domestic sales, however the domestic sales revenue also contained a significant amount of indirect exports.   

The cumulative trading profit amounted to HUF 472 118 Th, while the consolidated trading profit was HUF 582 482 Th.

The negative financial profit (HUF - 151 954 Th) is a result of significant currency exchange movements as well as interest paid for credits.  The trading profit covers the financing costs. The extraordinary profit figure was HUF 9 152 Th which did not have a significant impact on the profitability of the group. The consolidated pre-tax net profit figure amounted to HUF 439 680 Th. The consolidated after-tax profit was HUF 400 049 Th. The consolidated balance sheet profit figure amounted to HUF 383 882 Th which exceeded last year’s figure by approx. HUF 70 million.

The grand total of the consolidated balance sheet of 2014 was HUF 11 559 082 Th, which was higher than that of the previous year by apprximately HUF 400 million. The increase is due to the higher figure of current assets, mainly inventories and liquid assets. The increase is partly due to the increase in order-book as a consequence of improving market position and the efficient operations indicating a substantial improvement in the state of liquidity. 

The value of the prepaid expenses decreased, the figure is negligible compared to the grand total of the consolidated balance sheet.

Within the liabilities the equity, the subordinated liabilities, as well as the long term liabilities represent 64,27 % of the total liabilities, which is lower than that of the previous year. The reason for the decrease is that the long-term liabilities of the previous years expire in 2015 therefore they have been transferred to the short-term liabilities. The value of the long-term liabilities of HUF 780 507 Th in the previous year decreased to HUF 33 773 Th in 2014. The value of the short-term liabilities is higher than that of the previous year by 34,16 %. The equity, the hidden reserves (subordinated liabilities), as well as the long term liabilities cover the invested assets.

Summarising, as a consequence of the reorganisation started during the past years (integration of workshops and activities, staff decrease, clarification of manufacturing range), the efficency of the operations of the Ganz group has increased substantially compared to the previous years.