The audit report revealed that in the retail segment of Agrokor, a net loss of 2.2 billion kuna was recorded last year, of which 1.9 billion kuna was in Konzum, said Ante Ramljak, the extraordinary commissioner in Agrokor, on Thursday while presenting the results of the companies within the group.
>>> Consolidated annual report on the status of the Jamnica group for 2016 – document
The audit in the retail segment covered Konzum and Tisak, and the total negative effect in 2015 and 2016 in that segment amounted to 2.5 billion kuna, Ramljak stated.
In agriculture – Belje, PIK Vinkovci (report) and Vupik – a net loss of 300 million kuna was recorded in 2016, while in food, which includes Ledo, Jamnica, Zvijezda, and PIK Vrbovec, the loss was 700 million kuna.
In the period from 2015 to 2016, the total negative effect on net profit in agriculture reached 200 million kuna, and in food, it was 1.4 billion kuna.
The most significant negative impact on profit in 2016 was due to provisions of 50 percent on mutual receivables within the Agrokor group, the audit report showed.
Scope of the Audit
Ramljak stated that the scope of the Agrokor audit conducted by PricewaterhouseCoopers (PwC) covers 27 companies that are subject to statutory audit in Croatia, 3 companies in Serbia, and 3 companies in Bosnia and Herzegovina, covering 99 percent of group revenue and 98 percent of group profit for 2016.
“Thanks to the protection that the law on extraordinary administration provides to the companies with the aim of restructuring and continuing operations, these reports were prepared on the principle of business continuity,” Ramljak emphasized, explaining that this is important because without that law, the financial reports would call into question the future viability of the entire group and companies, and bankruptcy proceedings would need to be initiated.
If the reports were prepared on a liquidation basis, based on bankruptcy, the loss of value per company would be much greater, Ramljak noted.
At the ongoing press conference, the extraordinary administration of Agrokor is presenting the key findings of the audited financial reports for key individual companies within the Agrokor group, excluding Agrokor d.d.
From Agrokor, the announcement of the audited financial report of Agrokor d.d. and the audited consolidated financial report of the Agrokor group is expected at the beginning of next week, after they are presented to the Temporary Creditor Council.
