Delta generates a profit of EUR 24, 2 mil - Company continues investing in agriculture, construction of Planeta shopping mall in 2014

None of the news, a great investment or reconstruction of government has provoked as great interest lately as the appearance of the owner of Delta holding, Miroslav Miskovic, after the company paid a guarantee totaling EUR 12 mil for his exit out of the prison.

Miskovic was sitting in the public in the first row with the company management board members and did not give any announcements. Delta previously announced that at today`s media press conference, court proceeding against the owner of Delta will not be commented but that business results for the first half of 2013 will be presented.

Before the media conference, the company held a meeting where business results for the first half were estimated as successful.

Dejan Jeremic, the Executive Vice President for Operations with the Delta Holding company, said that in the first half of 2013 the company generated an overall profit of RSD 33,15 billion, i.e. EUR 296 mil.

(Miroslav Miskovic)

- We are extremely proud of the results, first of all to those of Delta Generali Osiguranje and Delta Agrar as well as of shopping malls. Results are 10% lower than planned with a 5,6% decrease than in the same period last year - Jeremic said.

He pointed out that the company is expected to achieve plan for this year totaling EUR 701 mil because the results in the second half are always 10 to 15% better than in the first half.

Delta representatives said that the first half of 2013 saw operational profit before depreciation of RSD 2,7 bil, i.e. EUR 24,2 mil.

- A total of EUR 47 mil, i.e. RSD 5,35 billion was paid to the budget of Serbia for taxes, contributions, including VAT - Jeremic mentioned, adding that the first half of the year did not see headcount number decrease. Therefore Delta Holding still has 7.200 people.

Delti representatives also say that, within seven months while Miskovic was imprisoned, none of the business partners, among which Nike, Mars, BMW, did not terminate cooperation but all of them "showed understanding for the circumstances the company is facing".

Guarantee money did (not) change the plans of Delta

The Executive Vice President of Delta Holding for the Operations pointed out that funds for guarantee was provided from the operational business activities of Delta in Serbia. He stated precisely that a total of RSD 1,36 billion (EUR 12 mil) was provided from business operations of Delta agrar, Distribucija, Delta sport and that the funds were provided from payment collection and stock optimization.

- In the guarantee, there is no money from the Cyprus or any other destination in the world - Jeremic said.

When eKapija asked whether they changed plans with respect to announced company`s investment, such as construction of the Delta Planet shopping mall and investment in Delta Agrar, since, as they said, guarantee money was paid for the operational business, the company representatives answered they would continue investing in majority of projects but that some minor investments will be delayed.

- The largest construction site in Serbia, i.e. the reconstruction of the former Continental hotel is in progress and in line with the plans. The opening is announced for December 15 this year. When it comes to the Delta Planet construction, we have completed design and prepared necessary documentation but due to new situation in the company, we will not start the construction this year but we are planning realization of the investment in 2014 - Vojislav Glavinic, General Manager with Delta Real Estate said.

The Delta representatives said that London-based branch office was opened as the European headquarters because they are planning to expand to the EU markets.

S.O.