Dogi boosts its red figures to 28 million by September
Spanish manufacturer Dogi has reported losses of €28 million for the first nine months of 2009. Despite this setback, the company remains optimistic about returning to profit in early 2010. A key factor in its financial struggles was a €15.7 million write-down of its stake in German subsidiary Penn Elastic GmbH.
Dogi’s financial position shows a narrow positive net equity of €1.6 million, with assets valued at €53.1 million against liabilities of €51.5 million. The company has taken steps to stabilise operations, recording a gross operating profit of €3.8 million during the same period.
Sales at its Spanish plant have outperformed expectations, rising 27% above forecasts to €49 million since the approval of a restructuring plan. However, the firm’s short-term survival now hinges on selling its stakes in subsidiaries EFA Inc. and Dogi China.
Management has stressed that these divestments are critical to securing liquidity. If successful, the moves could help Dogi meet its goal of profitability by early 2010.
Dogi’s recovery plan relies on asset sales and continued strong sales performance. The company’s ability to offload its stakes in EFA Inc. and Dogi China will determine whether it can overcome its current financial challenges. A return to profit remains contingent on these measures taking effect as planned.
