Supervisory Board of Tigar a.d. adopted Annual Business Report for 2016 and balances for statistical purposes. 

In its session held on 24 April, Supervisory Board of the company Tigar a.d. reviewed and adopted the unaudited Business Report for 2016. 

After individual results for Tigar a.d. Pirot and its dependent entities were adopted, the Company, pursuant to its legal obligation, has done consolidated balances comparable only with the previous year since by the end of third quarter 2015 there came about the status change of merger of three production entities to Tigar a.d. 

At the consolidated level there was stated operating profit (EBIT) in the period January – December 2016 in the amount of RSD 92.8 million whereas in the same period in the previous year was stated operating profit in the amount of RSD 19.9 million. Operating profit prior to amortization and provisions (EBITDA) amounts to RSD 255.9 million whereas in the previous year there was recorded operating profit prior to amortization and provisions in the amount of RSD 213.2 million.

Managing Director of Tigar a.d. Pirot, Branislav Čurić says, ’Consolidated operating income recorded a growth by 6% in relation to the previous year due to significantly changed structure of the production program, primarily in the part of footwear in 2016 which was predominantly intended for the export market where products have higher value. 

Rubber Technical Goods market position is jeopardized as reflected in sales decline by 9% in relation to the previous year and as a consequence of lack of markets and insufficient utilization of production capacities intended for accompanying large business systems. 

When it comes to Chemical Products there is an increase in income by 21% in relation to 2015, as a result of placing adhesives in foreign markets’, says Branislav Čurić.

It should be noted that dependent entities: Busines Service l.l.c., Free Zone Pirot, Tigar Security l.l.c., Catering l.l.c., Pi Canal l.l.c., Inter Risk l.l.c. and Tigra Trejd Banja Luka have generated profit in the amount of RSD 85.6 million. In the whole group remained three entities: Ti Car Trgovine l.l.c, Tigar Incon l.l.c., Tigar Partner l.l.c. that achieved negative results despite the activities taken during 2016 with a view to recovery. 

Debt to equity conversion carried by the Republic of Serbia by means of its funds and business entities where the Republic of Serbia has its share in capital as well as reduction of the debt from the PPoR for approximately 17.8 million euros represents one of the most important events that marked 2016. What remains as large ballast are still significant debts from the previous period which are now slightly less than 40 million euros after the conversion. Tigar has demonstrated that it can operate but servicing so great liabilities is a very difficult task and it significantly affects the already impaired liquidity. The Company sees the key to overcoming the problem of liquidity in growth of sales, as well as through the write-off of part of debt towards other creditors. 

’The most important is that the quality of our products satisfies even the most demanding markets of Europe and Canada. We have managed to establish cooperation with new customers that were also present in 2016 with a smaller quantity of rubber footwear, and business cooperation with them continues in 2017’, Čurić says. 

In April 2017 Government of the Republic of Serbia passed the Conclusion launching the initiative for privatization of Tigar a.d. Pirot and its dependent entities.