Bosnalijek reduced the net profit by half while its sales revenue grew

The net profit of Bosnalijek in the II quarter 2017 reduced by more than half compared to the same period last year and amounted to 542 thousand BAM, informs the financial report of the company. Meanwhile company’s sales revenue in this period grew up compared to the same period last year by 13% and amounted to 51,6 million BAM.

This is the worse financial result of Bosnalijek since 2013, when the net profit for the whole year amounted to only 113 thousand BAM. In 2014 the net profit grew up to 10 million BAM and in 2015 reached the record level of 11 million. In 2016 the net profit at year-end amounted to 9,5 million BAM.

Company’s executives justify this disastrous financial performance by unfavorable exchange rates. However, it is noteworthy that the news about the worsening financial performance came simultaneously with the publication of some journalist investigations which had revealed the facts of siphoning off millions euro from Bosnalijek through the mechanism of assigning its receivables.

Thus, in 2015 through the factoring agreement with the Slovenian Maksimus Holding doo, 2,2 mln euro were siphoned off from Bosnalijek. This funds ended up on bank accounts belonging to individuals with close ties to vendor’s director Nedim Uzunovic. It is not excluded that the beneficiaries of this dubious schemes used this money to acquire shares in Bosnalijek itself.

In December, 2016, the debt of the Russian company Imperia Sodruzhestvo amounted to 16,5 mln euro was assigned to Maksimus Holding doo, and later was re-assigned to another company. As a result, there is a high probability that Bosnalijek will never recover this money.

Also, there is evidence that in March, 2017 the Russian office of Bosnalijek invited the distributors Puls and Protek to pay for the supply of its products through the Czech company Close Ville.

Earlier representatives of the largest shareholder of Bosnalijek, Luxembourg-based Haden SA, expressed their concern that the company was managed inefficiently and executive’s actions had caused direct damage to the interests of the vendor and its shareholders. After that Haden was met with attempts to discriminate its lawful rights as a shareholder. Particularly, in December, 2016 Konstantin Zevlov was illegally removed from the position of the chairman of the Supervisory Board of Bosnalijek. In June, 2017, Haden’s list of nominees to the Supervisory Board wasn’t even admitted to voting for made-up reasons. Today’s line-up of the Supervisory Board of the company consists exceptionally of people personally loyal to Nedim Uzunovic.