Sojaprotein AD, the biggest soybean processor in the Balkans, reported a net loss of 181 million dinars ($2 million) in the first quarter because of higher raw material costs and a weaker dinar.
Earnings before interest and tax plunged 71 percent to 118.8 million dinars, the Serbia, Novi Becej-based company, majority owned by the Victoria Group AD, said in a regulatory filing to the Belgrade Stock Exchange. Sales rose almost 16 percent to 2.88 billion dinars. The effect of the weak dinar in the period was in excess of 300 million dinars.
The cost of materials, which accounts for 76 percent of Soja’s operating costs, rose 20 percent and was the main negative factor after the currency, said Ivan Dzakovic, a financial analyst at the Belgrade-based brokerage Sinteza Invest Group.
“On the other hand, the company is in a new investment cycle that will increase its profitability in the long-run” and the “stock is still worth investing,” he said.