Kutjevo Reports Decline In Profits

Leading Croatia-based wine producer Kutjevo has reported a 52.4% year-on-year (y-o-y) fall in net profit for FY08. Net profit came in at HRK13.2mn (US$2.36mn). In our opinion, like a number of regional companies, the firm's bottom line may have been squeezed by the adverse foreign exchange climate. Croatia's kuna currency has depreciated against the US dollar and euro over the past year, which has increased the cost of refinancing foreign currency denominated debt.

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