Gorenje adopts new strategy - Debt reduction and revenue boost outside Europe

Gorenje has adopted a new strategic plan for the period 2014-2018, Delo cited the company's Supervisory Board as confirming yesterday.

People at Gorenje announced that they had decided to refresh the strategy because in the past year and a half, they had concluded the process of strategic relocation of production, entered into strategic partnership with Panasonic, sold their furniture production, and reorganized and optimized the sales structure.

One of the key goals of the Velenje-based company is to reduce the debt to such an extent that the ratio of net financial debt to EBITDA amounts to maximum 3 as of 2015.

The group wants its European sales to continue to account for most of the revenue in the period 2014-2018, but it also intends to strengthen its presence in non-European markets, where the revenue should be increased to EUR 170 million by the end of 2018. Gorenje also intends to further strengthen its strategic partnership with Panasonic, which has recently recapitalized the company with somewhat less than EUR 10 million, thus acquiring a 13 percent stake in it.