Negative Impact of Agrokor Led Tehnika to a Loss of 141.8 Million Kuna Last Year

The construction company Tehnika recorded a loss of 141.8 million kuna in 2017, compared to a net profit of 926 million kuna achieved the previous year, with the negative business result particularly influenced by the write-off of receivables from companies within the Agrokor group, as stated in the financial report of the company published on Wednesday.

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According to the report, in 2017, Tehnika planned to achieve a profit of 19.34 million kuna, and the main reason for the reduction in basic realization and lower net profit than planned primarily lies in insufficient capacity utilization, especially in the first quarter, followed by a decrease in margins for works under contracts for a well-known investor and due to internal problems and weaknesses within the company.

“The expectations announced in the report for the period from January to September 2017 unfortunately materialized, and the negative business result of the company was particularly influenced by the alignment or write-off of receivables from companies within the Agrokor group and the interruptions in the realization of certain contracts, of which the most significant is certainly the termination of the sale contract of the subsidiary Zagreb trend d.o.o. Zagreb,” the company stated.

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Additionally, the result was negatively affected by changes in the contractual terms of the lease agreements between companies in the Agrokor group and the subsidiaries of Tehnika d.d.

Without the impact of “lex Agrokor,” the company assesses that the achieved result from regular operations for 2017 would have been significantly better than reported, or around zero.

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The company achieved total revenue of nearly 610 million kuna or 81.7 million euros from January to December 2017, which is 0.71 percent less than the revenue in 2016.

As reported, all activities in the past year were carried out with 705 employees, and the average net salary per employee in Croatia amounted to 5,660 kuna, which is 5.5 percent higher compared to the previous period.