Management failed to secure raw materials on time: Igman shares plummet after work stoppage, 15 million KM 'wiped out' in a day!

(Patria) - Shares of the company Igman from Konjic, which is in an unprecedented crisis, fell by 13.3 percent in just one day.
Specifically, the value of Igman shares decreased from 195 KM to 169 KM, writes BiznisInfo.ba.

Overall, this means that the market value of the entire company has decreased from around 113 to around 98 million marks. Thus, Igman lost 15 million KM in market value in one day.

The shares fell on Monday, the same day it was announced that the company is suspending production due to a disruption in the supply of gunpowder from Serbia, and that workers are being sent on forced annual leave.

A significant drop in shares in just one day

Experts explained to BiznisInfo.ba that the situation is not at all trivial and that it will likely not be resolved quickly. They pointed out that Igman's management should have worked earlier to secure alternative sources for key raw materials, especially since this is not the first time production has been interrupted due to supply disruptions from Serbia.

Significant financial loss

The disruption comes after Igman has already recorded a catastrophic result in the first half of the year, with a loss of 19.8 million KM and a drop in revenue by as much as 24.3 million KM – from 89.3 to just 65 million marks.

At the same time, other companies in the defense industry in FBiH are recording record business results. This is shown by individual company reports as well as data on total exports.

In the first half of this year, exports of weapons and ammunition from BiH amounted to 238.6 million KM, while in the same period just four years ago, it was around one hundred million.

What the “major audit” will reveal

Despite increased production in all major factories, except for Igman, the FBiH Government recently announced an audit of this sector's operations. The relevant minister, Vedan Lakić, said at the time:

“From the moments when we were saving companies from bankruptcy and complete shutdown, we have reached the stage of new employment, valuable contracts, and manifold increased profits. Most companies are operating stably today, but we are encountering obstacles that cannot be removed until we find their cause. An extraordinary audit is a step that will allow us to see what has not been visible so far: irregularities, omissions, and even possible abuses, by both previous and current management. No one will be spared or protected”.

Igman, which was a major star of the domestic industry until recently, is of mixed state-private ownership.