Romania's Electromagnetica swings to loss in 2023

The company's total revenue decreased to 211.9 million lei in 2023, from 249.9 million lei in the previous year, whereas its total expenses increased to 248.5 million lei from 225.1 million lei, it said in an annual financial report filed with the Bucharest Stock Exchange.

Electromagnetica's results last year were affected by a decrease in sales caused by returns of unvalued products by customers, unfavourable payment conditions, and accumulation of overdue payments from some partners, the company explained.

Total assets decreased to 394.3 million lei at the end of 2023, from 443.8 million lei a year earlier. Total liabilities narrowed to 48.5 million lei from 63.9 million lei.

In 2024, the company will prioritize selling the products it has in stock, both through direct sales and by participating in auctions.

Founded in 1930, Electromagnetica is a manufacturer and supplier of distribution and electricity metering equipment, LED lighting solutions, electric and electronic parts, metal and plastic injection parts, tools and molds, automotive parts, and safety systems for rail traffic. Its products are also targeted towards green energy production and technologies aimed at increasing energy efficiency. The company also offers rental services and manages about 39,000 sq m of rental space with an occupancy rate of 91%.

Electromagnetica's shares traded flat at 0.25 lei as at 1549 CET on Friday on the Bucharest Stock Exchange.

(1 euro=4.9765 lei)