Agrokor: PIK Vinkovci reported a loss of 442 million kuna last year, Vupik 255

PIK Vinkovci reported a loss of 442.2 million kuna for the past year, while Vupik reported 255.4 million kuna before taxation, according to data from the audited financial statements of these companies published on the Zagreb Stock Exchange. The loss at these companies is primarily the result of booking provisions for guarantees that these companies provided to Agrokor and its affiliated companies.

PIK Vinkovci with a loss of 442 million kuna

The loss of PIK Vinkovci last year amounted to 442.2 million kuna, which is double the loss of 211.2 million kuna from 2016.

Thus, the loss of PIK Vinkovci last year was greater than the total revenue of the company, which amounted to 428.75 million kuna, about one hundred million kuna less than the revenue from 2016, when it was 530.8 million kuna.

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This decline was primarily influenced by sales revenue, which was also about one hundred million kuna lower than the previous year, amounting to 397.7 million kuna in 2017, compared to 496.2 million kuna in 2016.

Total expenses, on the other hand, increased from 741.9 million kuna in 2016 to 871 million kuna last year.

Data from the audit report conducted by the auditing firm PricewaterhouseCoopers (PwC) show that the total amount of liabilities in which PIK Vinkovci acted as a guarantor amounted to 25.77 billion kuna, and that according to the approved settlement, the Vinkovci company recorded guarantees amounting to 186.4 million kuna according to the distribution determined by the EPM model (Entity Priority Model). EPM simply represents a waterfall analysis for determining creditor recovery.

The total recorded amount of guarantees of 186.4 million kuna relates to obligations for guarantees incurred before the extraordinary administration. According to the EPM model, the amount of 127.6 million kuna was allocated to guarantees under the roll-up (SPFA) loan of the company, but the total amount of guarantees is reduced by obligations on the utilized part of the loan, which has not yet been repaid. The status of obligations under the SPFA loan as of June 20 of this year amounted to 193.8 million kuna, and the company is not obliged to make provisions under the SPFA loan, notes the audit report.

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According to data from the consolidated report, the PIK Vinkovci group achieved total revenues of 457.9 million kuna last year, while total expenses amounted to 838.6 million kuna.

The loss incurred in 2017 amounts to 380.69 million kuna, the report states.

Vupik with a loss of 255 million kuna

Vupik reported a loss of 255.4 million kuna for the past year compared to a loss of 50.9 million kuna reported in 2016.

Total revenues of Vupik last year amounted to 389.1 million kuna, which is a decrease of 7.7 percent.

Sales revenue decreased by 9.5 percent compared to 2016, amounting to 329.1 million kuna, which the management of the Vukovar company primarily explains by a reduction in the scope of lending in the cooperative production segment and a decline in wine sales revenue due to the transition to consignment business with Konzum.

Total expenses of Vupik last year amounted to 644.4 million kuna, an increase of 36.3 percent compared to the same period last year.

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Data from PwC’s audit report show that the total amount of liabilities in which Vupik acted as a guarantor amounted to 25.26 billion kuna, and that according to the approved settlement, the Vukovar company recorded guarantees amounting to 282 million kuna according to the distribution determined by the EPM model.

Of the total recorded amount of guarantees, 230.3 million kuna relates to obligations for guarantees incurred before the extraordinary administration, while 51.7 million kuna relates to guarantees under the SPFA loan contracted by the extraordinary administration. According to the EPM model, the amount of 67.1 million kuna was allocated to guarantees under the SPFA loan, but the total amount of guarantees is reduced by obligations on the utilized part of the loan, which has not yet been repaid.

The report also states that Vupik produced 14.27 million liters of milk last year, realized 4.21 million liters of wine, 1.02 million kilograms of fattened cattle, 13.12 million kilograms of fattened pigs, produced 1.14 million kilograms of grapes, and cultivated 6,719 hectares of agricultural land.

According to data from the consolidated report, the Vupik group reported a loss of 264.2 million kuna last year, an increase compared to the previous year when it amounted to 81.8 million kuna. Total revenues of the Vupik group amounted to 389.1 million kuna, a decrease of 7.7 percent, while total expenses of the group last year amounted to 654.3 million kuna, an increase of 38.4 percent compared to the previous year.

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The managements of both PIK Vinkovci and Vupik in the proposals for decisions on covering last year’s losses, which were sent to the general assemblies, state that the loss due to its magnitude cannot be fully covered from capital nor will it be covered from future operations. After the finalization of the settlement, the company will not continue operations but will be transferred to a newly established company, it is stated.

Of the companies within Agrokor listed on the Zagreb Stock Exchange, revised financial statements for the past year were published last week by Jamnica, Ledo, Zvijezda, and Žitnjak, today by PIK Vinkovci and Vupik, while reports from Belje and Tisak are still pending.