Business Results for the First Nine Months in 2019
The company 13 Jul-Plantaže realised the business result for the first nine months in 2019 within the circumstances that have been specific for this production year and business ambiance of the market. For the first nine months in 2019, the company realised the revenues amounted to 17.7 million EUR which is 8% lessin comparison to the previous year. One of the basic reasons for the decrease of the revenues were bad weather conditions, affecting considerably the reduction of the sales revenues of peaches, nectarines and table grapes. So, all extreme weather conditions in this year affected the key phenophases of the development of the grapevines, peaches and nectarines on the Ćemovsko polje which had a direct impact on the realised revenues. Sales revenue of the table grapes in 2019 was 50% less in comparison to the previous year, while the sales revenues of peaches and nectarines are also 50% less.Unfavourable weather conditions had affected the yield of wine grapes which has been 20% less in comparison to the last year. In spite of less quantities, the wine grape harvest 2019 was very good, regarding the quality of the processed grapes and produced wine.
By the sales of the bottled products on the market of Montenegro, the revenue of 9.1 million EUR was achieved and it is 4% more than the previous year and 2% more than the plan for 2019.The sales on the domestic market records the highest increase rate which shows that the tourist season has been good as well as proper sales and marketing strategies . The revenue of the sales of the bottled products was 3 million EUR on the market of Serbia which is 1% more than the last year. The other export markets record the steady increase of the sales. Modified time schedule of the execution of the contract with Chinese business partners, shifted from the third quarter to the fourth quarter, had also an impact on the resut of the sales revenues of the bottled products on the export market.The Chinese market is ranked in the fourth place as the export market for the company 13 Jul-Plantaže and its share is 16% in the total revenue of the sales of wine and brandy products.The sales results are realised,excluding the sales on the market of the Russian Federation which prohibited the import of Plantaže wines in March 2017, eliminating at that time the second ranked export market (following the market of Serbia) which reached the import, amounted up to 5 mil. EUR at the annual level.
The total costs for the first nine months of this year are 8% higher in comparison to the one of the last year.The operational costs of the company increased due to the aim to face adequately the challenges of bad weather conditions and keep the current production.Therefore, the costs for the procurement of the protective agents for vineyards, peach and nectarine on the Ćemovsko polje have been increased significantly as well as for providing the proper labour. The increased volume of production in the operational unit processing, for the first 9 months, caused considerably the growth of the intermediate goods and electrical energy, as the result of more considerable bottling than in the same period last year. The production of the bottled products for the first 9 months is almost 25% higher than in the last year.
Due to all the reasons,mentioned above, the company showed the loss, amounted to 1.4 million EUR.
Aiming to behave, in all segments,in accordance with the principles of responsible business operation, based on the achieved results for the first nine months, the company has signed with its Trade Union the Agreement on Reduction of the Coefficient for the Calculation of the Salaries for October in the amount of 6,67%.
We believe that the current result will not have any effect on longterm business success, ie development of the company and realisation of its strategic objectives. The company has realised the investments in the amount of 4.3 million EUR this year. The amount of over 5 million EUR was paid into the state budget for different taxes and contributions, while the taxes and contributions from the rescheduling of the fiscal charges have been paid regularly.