Challenges for Zito Karormann in the New Year
Zito Karormann, a company in the milling and baking industry owned by Selaudin Arifi, is facing another difficult year. In the first six months of this year, the company has once again reported losses, following a huge loss of 3.3 million euros last year.
While the losses for the period from January to June this year are lower compared to the same period last year, this is not due to any improvements in the core business of the company.
Challenges in the Bakery Industry
Despite a drastic decrease in both revenues and expenses, the bakery business of Zito Karajorman is facing challenges. The management continues to promise an increase in production and improvement in financial results, but the balance sheet tells a different story.
In the first six months of this year, Zito Karajorman operated at a loss of 66 thousand euros. Comparatively, during the same period last year, the financial results were even worse with a loss of 318 thousand euros. While the decrease in losses may seem like a positive sign, the future success of the bakery company will ultimately depend on its ability to increase revenues and cut down expenses.
Company’s Financial Performance
The company has reported a decrease in revenue of 60% in the first six months of this year compared to the same period last year, generating a total of 309 thousand euros. Almost all revenue came from sales in the domestic market. On the other hand, expenses have decreased significantly by 67%, totaling just under 363 thousand euros for the six-month period.
Although the reduction in expenses has helped to minimize losses, the company still faces challenges due to the decrease in both revenue and costs. This indicates that the company may need to reevaluate its strategies in order to improve its financial performance.
Financial Overview
Things are not looking good in this period. On the expense side, the biggest costs are for raw materials and other materials, totaling 203 thousand euros, and they are the only balance item where the decrease is not huge, but only 11 percent.
Also, what is not favorable is the significant decrease in labor costs for salaries, almost halving. In other words, for the first six months of this year, the costs for employees are 71 thousand euros, which is a decrease of 47 percent compared to the same period last year.
Company financial results improve despite challenges
The company has managed to reduce its financial expenses by 71%, mainly due to lower interest payments. This has resulted in a positive impact on the company’s overall financial performance, despite facing challenges such as declining revenues or a decrease in the number of employees.
While the company has highlighted its achievements in the recent financial report, it has not provided specific details on the reasons for the negative financial results that have persisted for the past year. However, the company remains optimistic about the future, expecting an increase in production and sales which will lead to an overall improvement in financial performance.
Ownership Battle in Company X
Recently, a fierce ownership battle has erupted in Company X, a leading company in the industry. Selaudin Arifi has acquired over 74% of the company’s shares and made an offer to all shareholders to buy out their shares, aiming to gain full control of the company. However, the shareholders did not sell their shares to him.
Prior to this, Arifi was a minority shareholder in the company but managed to acquire 51% of the shares from the previous dominant shareholder, Sreten Miladinovski. Arifi, known as the owner of the firm “AS Senjak,” is rumored to have close ties to high-ranking officials in the country.
The Rise of As Senjak Company in Kicevo
As Senjak, a company owned by Selaudin Arifi, has been making waves in Kicevo with its impressive profits. According to reports, the company has secured numerous state public procurement contracts, leading to its success in the region.
Despite facing challenges with Zito Karaorman, Selaudin Arifi has found success with his company As Senjak. As reported by Factor, As Senjak recorded the highest profit in Kicevo last year, amounting to 1.17 million euros, as per data from the Central Registry.