Strategic plan 2016-2020
Gorenje's new Strategic Plan until 2020 based on global growth
Looking for new opportunities in a changed and unpredictable environment, Gorenje has developed a new Gorenje Group Strategic Plan 2016–2020, based on global growth. Sales will be doubled in upmarket segments, with premium and innovative products, and in overseas countries.
Highly unstable and unpredictable business environment, in particular the conditions in Russia and Ukraine, and the major changes within the Gorenje Group, such as the divestment of the ecology business, led us to develop a new strategy that better reflects the challenges of our time and the changes in our business environment.
By focusing on our core activity and sales to markets beyond Europe, especially in upmarket segments, we are pursuing our strategic policies. The key goal in the new strategic plan remains profitable growth to a revenue of EUR 1.56 billion in 2020, with a 9-percent EBITDA margin. We shall reach it by doubling our upmarket sales and sales in the overseas countries. Ambitious activities in all fields of business will lead to stable growth of operating profit (EBIT) which is expected to exceed EUR 70 million in 2020 (with 4.5-percent EBIT margin).
In the following five years, we expect overall Gorenje Group revenue to increase by over EUR 400 million, or good 35 percent. On an annual basis, this means average growth of around 6.2 percent, which is a steeper growth than that of the global white goods market.
Consistently with Gorenje Group's key strategic policies, special emphasis is placed on cooperation with industrial strategic partners, especially the Panasonic Corporation.
In addition to growth and differentiation through innovative solutions, cost management is of key importance in a mature industry with excess capacities, such as the home appliance industry. As our revenue grows in the period until 2020, labour productivity will gradually improve as well.
We are aware that execution of the 2020 Strategy is even more important that quality strategic planning. Specific activities are already in place to accomplish our goals. This does not involve only management of development and technological processes, knowledge of the end user, organization of sales and after-sales network etc., but also an appropriate organizational structure and a strong corporate culture.
The employees – the Gorenje people – are ready for changes and risks, committed and goal-oriented, and confident of our success in reaching the goals set forth.
Gorenje, d.d., Management Board