Agrokor’s sales fell by 12 percent last year, loss still unknown

Given the circumstances under which Agrokor operated in 2017, particularly in the first half of the year, the extraordinary administration is quite satisfied with the achieved business result. The consolidated result of the Agrokor Group shows that the company had a total sales revenue of 39.3 billion kuna last year, which is only 12 percent less than in 2016.

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However, the consolidated sales revenue figure does not reveal the whole picture of the business, as the consolidation includes 105 companies, of which 52 are in Croatia (77 companies in Croatia are under the extraordinary administration). Furthermore, at the press briefing where these results were presented, it was not possible to determine how much of the sales revenue comes from companies under extraordinary administration and how much from those headquartered outside Croatia. More importantly, the presented profit and loss account for the Agrokor Group lacks the final figure – the amount of loss incurred during the past year. This information will be published later, as will the business results for each individual company.

So far, it has only been announced that the Agrokor Group, or its 105 companies, ended the last year with an EBITDA of 665 million kuna (35 percent less than the previous year), while the EBITDA without restructuring costs amounted to 967 million kuna, which is only six percent less than in 2016, and for this reason, the extraordinary administration is satisfied with the result.

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Agrokor d.d. itself, the parent company whose revenues mainly depend on management fees paid to it by operational companies, achieved 29 percent less revenue (a total of 285 million kuna) than the previous year, and its EBITDA decreased by 76 percent (to 253 million kuna). However, for Agrokor d.d., a far more important figure found in its balance sheet states that the value of its assets (8.9 billion kuna) is 23.3 billion kuna less than its liabilities. Additionally, one must add the negative capital of the Agrokor Group amounting to 20.8 billion kuna, which means that Agrokor’s total liabilities exceed the value of its assets by 44.1 billion kuna.