The retail chain Konzum, part of the Agrokor group, achieved a net profit of 26.5 million kuna in the first half of this year, which is an increase of 30.5 percent compared to the same period last year, according to the unconsolidated financial report of Konzum published on the Zagreb Stock Exchange.
This business result was made possible by increasing overall profitability across all business segments, successful cost management, investment in the development of IT equipment, employee training, etc., as stated in the explanation of business results. Konzum’s total revenues in the first half amounted to 5.77 billion kuna, a decrease of 1.6 percent. Sales revenues, which constitute the majority of income, decreased from 5.3 billion kuna to 5.18 billion kuna. The company notes that the ratio between achieved retail and wholesale turnover has not significantly changed, with retail still accounting for just over 70 percent of total sales. Konzum reduced total expenses by 2.5 percent in the first half, to 5.69 billion kuna.
In the first six months, the company continued to invest in the development and expansion of its retail network, increasing its market share and recording a retail growth of 2.5 percent. At the end of June, Konzum had 281,070 square meters of sales capacity. By the end of the year, despite the complex conditions in the retail market, the Management expects to achieve a good business result due to the positive impact of the tourist season and further investments in increasing sales capacity, modernization, and optimization of business processes, which will contribute to further cost reduction and profit increase. (H)
