Igman's profit falls from 32 million KM to just half a million KM

(Patria) - The company IGMAN d.d. Konjic, one of the largest industrial employers in Bosnia and Herzegovina, has begun a comprehensive process of structural reforms aimed at stabilizing operations and ensuring long-term sustainability, the company announced.

"This is a decision by the company's management appointed at the beginning of May 2025.
in response to a decade-long trend of declining profits and increasingly complex market conditions. While the year 2015 ended with a profit of 32 million KM, the profit in 2024 has been reduced to just half a million KM. Given these indicators, the company has decided on decisive cuts in its business operations," it was announced.

New Management and First Measures

The focus of the new management is on a new job systematization, improving production control, and more efficient use of existing capacities. Parallel to internal changes, IGMAN is intensively working on expanding its presence in Asian and African markets to diversify sales channels and mitigate the impact of US tariffs.

Additional efforts are also being invested in strengthening its position in existing export markets, primarily in the United States, the European Union,
Saudi Arabia, and Iraq.

"Our focus is on long-term partnerships and full compliance with international standards," the company states, announcing the establishment of representative offices in target countries and the development of products tailored to the specificities of these markets.

Loss in 2025: Contracts, Tariffs, Exchange Rates, and Raw Materials

The preliminary financial report for the first six months of 2025 shows a negative result of 19.8 million KM. The largest part of the loss, as explained by the company, is the result of a contract agreed upon in 2022, the realization of which only began in 2024 under significantly changed market conditions. Inflation and rising input costs have led to a direct loss of at least 12.5 million
KM.

Additional financial pressure was also created by negative exchange rate differences due to the fall in the value of the US dollar, which cost IGMAN an additional 5.5 million KM in the first six months of this year alone.

The ban on gunpowder exports from Serbia, from where the sole supplier – Barutana Lučani – supplies the company, has caused months-long production delays. Gunpowder stocks are limited, which directly affects capacities and delivery dynamics. Occasional malfunctions of technically outdated equipment further slow down processes.

In-depth Analysis and Business Transition

To strengthen stakeholder confidence and ensure full transparency, the company has initiated an independent in-depth analysis of its business operations for the past four years. The analysis is being conducted by a renowned auditing firm from the Big Four, and its goal is to identify additional measures for stabilization and improvement of operations in the next development phases.

"A complete reset of management, production, and cost planning methods is necessary, including redefining business priorities in line with market demands," IGMAN emphasizes.

In line with modern regulations, IGMAN is also preparing for the obligations that will arise from the introduction of the EU Carbon Border Adjustment Mechanism (CBAM). A baseline study for the construction of a solar power plant for its own needs has been initiated to reduce the production's emission footprint and strengthen energy independence.

Key Employer and Strategic Partner

IGMAN currently employs over 1,300 workers and is one of the most significant industrial employers in the country. Its stability directly affects the economic flows in the local community, as well as Bosnia and Herzegovina's export performance.

Due to its strategic importance, the company maintains close cooperation with the Government of the Federation of Bosnia and Herzegovina, which, as the majority owner, provides support to the consolidation process.
Despite the complex circumstances, the company states that it remains committed to stabilizing operations, strengthening competitiveness, and preparing for long-term recovery.

"We believe in the potential of our people, we know where the problems are, and we are working to solve them. We are focused on recovery, stability, and sustainable growth," the company concludes.