Ivica Todorić announced on Thursday via his website that he will comment on the revised financial reports for 2016 for some operational companies of the Agrokor group in the coming days, noting that he is analyzing these reports with his financial experts.
>>>Todorić claims that the audit report will be the result of a ‘strategic and targeted’ accounting technique
“Agrokor has presented the revised financial reports for 2016 of the operational companies of the Agrokor group. They confirm the great value we have built over 30 years of continuous investment. I am analyzing the reports with my financial experts and will comment on them in the coming days,” Todorić briefly announced in his latest post.
The extraordinary commissioner in Agrokor, Ante Ramljak, presented the audit reports for last year for the most important companies within Agrokor at a press conference on Thursday, which were prepared by PricewaterhouseCoopers (PwC), while the publication of the reports for Agrokor d.d. and the Agrokor group was announced for Monday.
>>>Ramljak: Without the lex Agrokor, the reports would lead to bankruptcy
“Thanks to the protection that the law on extraordinary administration now provides to 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 a bankruptcy procedure would need to be opened.
He also pointed out that the financial reports for 2015 had to be ‘opened’ because “some things in 2015 were incorrectly recorded, some items were improperly managed.”
The audit thus, along with corrections for 2015, showed that the total assets of Agrokor’s companies are worth less than 13.4 billion kuna. According to the published data, the value adjustments in Agrokor’s retail division amount to 10.5 billion kuna (of which 7.4 billion kuna relates to Konzum), the total negative effect on capital through the correction of 2015 and the loss in 2016 in the agriculture division amounts to 1.7 billion kuna, and in food to 1.2 billion kuna.
>>>Agrokor Audit: In 2015, incorrectly recorded values amounting to 13.5 billion kuna
The audit reports for the most significant Agrokor companies show that the total loss was 3.2 billion kuna. In the retail part of Agrokor (Konzum, Tisak), a net loss of 2.2 billion kuna was recorded last year, of which 1.9 billion kuna was in Konzum. In agriculture – Belje, PIK Vinkovci, and Vupik – a net loss of 300 million kuna was recorded in 2016, and in food, which includes Ledo, Jamnica, Zvijezda, and PIK Vrbovec, 700 million kuna.
The most significant negative impact on profit in 2016 comes from provisions of 50 percent on mutual receivables within the Agrokor group, the audit report showed.
Ramljak emphasized at the press conference that the operational results of Agrokor’s companies in the first nine months of this year provide a good basis for negotiations with creditors about reaching an agreement and is confident that they will reach an agreement with them.
