Operating Results of the Company in the First Six Months of 2020

Announcement for the media of BoD of the company 13 Jul-Plantaže

The achieved results in the first six months of the current year were considered at the meeting of the Board of Directors of the company  13 Jul-Plantaže a.d. Podgorica, held on 30.06.2020.

Board of Directors has accepted the Information of the Management concerning the state in the production operational units which is very good, despite the difficult conditions , caused by the current pandemic of the new corona virus (COVID 19) in which the company production has been performed.

It was concluded that both the employed and the management made  great efforts to maintain, organise and lead this multi-based ,specific agricultural production, providing a prospective projection of the company future.

As it was stated, the new economic crisis, caused by pandemic COVID19, has a great influence on both global and regional, as well as on Montenegrin economy. Several factors have a great influence on the expected decline of GDPin our country as well as in the regional countries,covering over 80% of the market for the products of our company .The most important of them are: revenue decrease from tourism and almost all of catering activities, reduction of remittances from abroad, slowdown of the import growth and reduction of the inflow of foreign direct investments.

Both in our company and in almost whole Montenegrin economy, the consequences of the criris were apparent in mid March when the borders were closed and when we, following the national safety measures, closed all of our catering and retail facilities and stopped providing all services that we offer within the wine tourism. So, we completed the first quarter with the revenue decline of 19% in relation to the same period last year and the second quarter resulted in the revenue decline of 46%. The largest drop was recorded on the domestic market -57% due to the fall of the turnover in tourism which proves again that over 90% of our products in Montenegro have been consumed by a tourist-foreigner while the other markets recorded smaller decline in sales, 15-35%.

The revenue of  € 5,2 mil.was achieved which is 54% of the last year revenue while the expenditures were reduced for  €1,8 mil.

The operating result is negative which is usual for this activity in this period and it amounts € 5,0 mil. which is higher than the one  last year.

Regarding the salary policy of the employed and the workers, engaged by the agency, it is worth pointing out that the full social dialogue and understanding have been made  between Employer and Trade Union on that issue.Therefore, based on the signed agreement , a lawful and justified reduction of the salaries of 30% for the period April-August this year has been made. In this way, the employed showed that they are fully aware and ready to bear all burden ,together and in organised manner , as well as to overcome all negative consequences, caused by stated emergency situation.

Despite the fact that the revenue decline was recorded, Plantaže managed , from the current inflows, achieved by sales of its products and services, to settle over € 13 million liabilities, such as: € 5,0 mil to suppliers, € 4,1 mil.to the government budget, for net salaries of over 1.100 employed nearly €3,0 mil and €900.000 for due annuities to the banking sector.

We also continued successfully, despite of all difficulties and uncertainties, to  establish a new vineyard plantation this year, covering 46 ha of surface in the Municipality of Tuzi, total value of € 1,1 mil, a new, 24th well in Ćemovsko polje, 100 lit/sec capacity, irrigating the area of 100 ha of the plantations, value of €350.000 in order to improve the quality of our products and position them better on the market. In addition, there is a procurement of new equipment, harvesters, tractors, presses for grape processing and many other priority investments, necessary ,at the moment ,for uninterrupted process of production.

Plantaže used  the first package of urgent measures of the Government of Montenegro, dated from 19.03.2020 related to the moratorium on the taxes and contributions on the salaries for 90 days as well as the moratoroium on the loans at the business banks and Investment-Development fund(IRF). This company obtained only €1,2 mil loan by IRF and Plantaže neither used nor received any Euro of the subsidies, regarding the second package of the Government social-economic measures, dated from 24.04.this year. However, we have a great expectation by the third package of the announced, economic measures, the focus of which will be directed to the financial and credit support to the economy. We are completely sure that we will find most solutions in this package which will be strategically important for our company and generally, for the agricultural sector in our country.

Besides all stated and indisputable difficulties, the attacks of the part of the Montenegrin public on Plantaže have been continued, ungrounded  and very fierce, especially by those who are not acquainted witht he agricultural production, who have never been in the international market and and international competition.  That is why they should be reminded that every politicization is very risky for the economy and it may-depending on its intensity and actual strength and political power –lead to its deterioration and destruction! If somebody thinks that it is easy to manage Plantaže, let him first prove it with the results! Certainly not maliciously from comfortable, rentier positions but with concrete products and indisoutable success in the international markets!

We remind the widest public of a few facts regarding this company:

• Plantaže is one of the biggest Montenegrin exporters (wine is among 10 products that have been exported most). The value of the annual export is over  € 15 mil.
• In spite of the fact that it has not been present on the market of the Russian Federation which is the second export market by its volume, for four years in succession, Plantaž has gained total annual revenue continuously, from €30-35 mil.on the world market, without any Euro of the national subsidies or grants;
• Plantaže has not had any fiscal debt up to and including March 2020 ,when the difficulties occurred due to the pandemic. Plantaže effects the payment of € 10 mil on average, annually or almost the third of its total revenue;
• Plantaže employs 1.250 workers on average monthly;
• Plantaže owns the largest vineyard in Europe, state-of-the art equipment and management of wine production which ranks it at the very top of the wine making and viticulture in the world, thanks to huge investments that amount up to 20% of the total revenue annually;
• In the previous 13 years,Plantaže invested over €42 mil. and within that period, over 800 ha of the new plantations of vineyards, fruit orchards and olives have been established;
• Plantaže also proved its social responsibility in the period of corona virus, donating over 30.000 lit of the distillate for medical purposes;
• Plantaže has not been only Montenegrin, but also European and world market company, because it has been exporting its products into over 40 countries of the world!