2019 Was Fantastic Year for Domestic Economy, Does 2020 Offer a Lesson?

Lauren Simmonds

Copyright Romulic and Stojcic
Zagreb, Croatia
Zagreb, Croatia

As Poslovni Dnevnik/Suzana Varosanec writes on the 23rd of September, 2020, the domestic economy achieved great results in 2019 – growth in income, profits, investments, employees, wages, all these are indicators of its strength until the outbreak of the current coronavirus pandemic, which creates pressure and additional challenges to overcome this truly unprecedented crisis.

Expectations for next year speak of growth for the domestic economy, but it won’t be enough to compensate for this year’s concerning decline. The crisis is, in addition to its devastation, perhaps a much needed chance to reform the domestic economy. This is part of the message of the Minister of Finance Zdravko Maric at a recent award ceremony of the 12th Golden Balance organised by Fina and under the auspices of the Government, in which he discussed the Government’s assistance measures, including support for preserving jobs.

The Golden Balance – the award of the Financial Agency (Fina) to the most successful enterprises operating in a particular industry, according to indicators of profitability, liquidity, indebtedness, activity and economy, was awarded for the first time recently by digital video streaming on Fina’s website.

The overall winner was the Importanne Resort from Dubrovnik, a company owned by Zagreb’s Importanne, ie entrepreneur Ciril Zovko, who, in addition to two shopping centres in Zagreb, also owns five Dubrovnik hotels – Ariston, Royal Princess, Royal Palm, Neptun and Royal Blue. The Dubrovnik company, with 136 million kuna in total revenue last year, 42.7 million kuna in net profit and 182 employees is the winner of the Golden Balance for the most successful enterprise according to the financial rating in 2019, as well as the Golden Balance for the most successful company in 2019 in the field of accommodation and the provision of services.

At the end of 2019, the company had zero kuna in financial liabilities to banks, while it has a high level of equity and has remained financially stable in the long run, even under the influence of the crisis caused by the coronavirus pandemic. Last year, they completed a three-year investment cycle worth 70 million kuna in the new Royal Blue five-star hotel, and plans for new investments are estimated to stand at around 124 million kuna.

Rijeka’s Ugor was the most successful company in 2019 in the field of agriculture, forestry and fishing with 15.6 million kuna in total revenue, 2.9 million kuna in net profit and 43 employees.

In the field of mining and quarrying, the laureate is the company Radlovac from Orahovica, which earned 71 million kuna and had a net profit of 11.5 million kuna last year. It boasted 79 employees.

The Karlovac-based HS Produkt, the overall winner in 2018, was the most successful in the manufacturing industry last year: it had 377.9 million kuna in total revenue, 77.8 million kuna in profit and 1,377 employees.

Hep Proizvodnja, the most successful company in 2019 in the activity of electricity, gas, steam and air conditioning supply, earned 4.2 billion kuna in total revenue, 457 million kuna in profit and boasted 1,961 employees.

Rijeka’s Jadranska vrata, the most successful company in 2019 in the activity of transport and storage, earned 143 million kuna, and with 181 employees they made a profit of 35.8 million kuna.

H&M Hennes & Mauritz from Zagreb are the most successful company in 2019 in the activity of wholesale and retail trade; the repair of motor vehicles and motorcycles, with 511 million kuna in revenue, 35.8 million kuna in profit and 181 employees. Iver from Cepin, as the most successful company in 2019 in the construction division, earned 38 million kuna in revenue, 27.7 million kuna in profit and had 343 employees.

Spectra – Media from Zagreb – the most successful company in 2019 in the field of water supply; wastewater disposal, waste management and environmental remediation activities, earned 75 million kuna, and had a profit of 26.3 million kuna and 201 employees.

Microsoft Croatia, as the most successful company last year in the information and communication business, earned 145 million kuna, had a net deduction of 21.2 and 45 employees. Zagrebinspekt, as the most successful company in 2019 in the field of professional, scientific and technical activities, had 21 million kuna in revenue, 4.2 million kuna in net profit and 75 employees.

The awards were given to 4 new categories: for the most successful long-term enterprise in 2019 (the winner being Atlantic Grupa/Group), for the largest enterprise in total revenue (INA), the most successful bank in 2019 (PBZ) and in the category of the most successful new entrepreneur in 2019, the Karlovac-based MV Reconnect took the title.

The domestic economy, much like the global one, has been shaken considerably by the ongoing coronavirus pandemic, and while the above results showcase the success of the companies operating in Croatia outside of tourism, the impact the crisis has had on Croatia’s most important economic branch might mean it is finally time to rethink the domestic economy and everything it is based on.

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