Financial Performance in H1 2025
Montenegrin Adriatic sea port operator Luka Kotor reported a net profit of 411,890 euro for the first half of 2025. This figure represents a decrease compared to the 498,715 euro net profit recorded in the corresponding period of 2024. The company's financial statement indicates that this narrowing of profit occurred despite an increase in net sales revenue, which rose to 2.4 million euro in H1 2025 from 1.9 million euro in the first half of 2024. Other operating revenue also saw a slight increase, reaching 102,535 euro from 91,128 euro in the prior year period.
Increased Expenditures Drive Profit Decline
The primary factor contributing to the narrowed net profit was a substantial rise in expenditures. Operating costs for Luka Kotor nearly doubled, soaring to 1.1 million euro in the first six months of 2025, compared to 578,000 euro in the same period of 2024. Additionally, costs associated with workers' wages and benefits increased to 930,000 euro, up from 880,000 euro in H1 2024. These elevated costs offset the positive growth in revenue, leading to the overall reduction in net profit for the period.
Company Background and Ownership
Luka Kotor, trading under the symbol MNG:LUKO on the Montenegro Stock Exchange, operates the port situated in Kotor, Montenegro. The port is strategically located in front of the city's old town, a recognized UNESCO cultural heritage site, making it a significant destination for cruise ships and yachts in the Mediterranean. As of September 25, 2025, the ownership structure of Luka Kotor includes the Municipality of Kotor holding a 57% stake, followed by Montenegro's state pension fund with 17.5%, and an anonymous investor accounting for 9.9%. The company's stated vision is to be a leader in nautical tourism port services in the Mediterranean, emphasizing sustainable development, client satisfaction, transparent business, and social responsibility.
12 Comments
Michelangelo
While it's great to see revenue increasing, the significant rise in operating costs definitely needs closer scrutiny. They need to balance growth with efficiency.
Donatello
Wage increases are a positive step for employees. Well done!
Habibi
It's encouraging that sales revenue is up, indicating strong market demand for their services. However, the substantial increase in overall expenditures raises questions about the company's operational efficiency moving forward.
Africa
Investing in operations and staff is crucial. Good long-term strategy.
Bella Ciao
Kotor port is vital for local tourism. They're handling increased traffic.
dedus mopedus
Revenue is up, that's the real story! Shows strong demand.
ytkonos
Despite challenges, they're still profitable. Sustainable growth takes time.
lettlelenok
Higher revenue but less profit means inefficiency. Needs investigation.
BuggaBoom
Profit down despite higher revenue? Poor cost management, clearly.
lettlelenok
This profit dip could impact local investments. A worrying trend.
Eugene Alta
Another company struggling with basic finances. Not a good sign.
KittyKat
The increase in workers' wages is a positive for employees, yet it contributes to the narrowed profit margin. Finding a sustainable balance between fair compensation and financial health is key.