Croatian food and retail consortium Agrokor reported an increase in profits in its food and agriculture segments during the first quarter of 2018, while the group's retail and wholesale sectors remained in the red.
According to the Extraordinary Administration Report for the period from 11 April to 10 May, Agrokor's retail and wholesale sector achieved HRK 2.87 billion (€388.6 million) in sales revenue in the first three months of its financial year, with EBITDA margin negative at 0.1%.
Although lower-than-planned revenues were generated in the period, an Easter boost helped lift revenues in Konzum retail stores in Croatia and Bosnia and Herzegovina during the month of March.
Konzum Performance
Konzum achieved sales revenues of HRK 1.96 billion (€265.4 million) and EBITDA of HRK 26 million (€3.52 million) in the first quarter.
In Bosnia and Herzegovina, Konzum BiH generated revenues of HRK 311 million (€42.1 million) in Q1 2018, which was 3.9% higher than anticipated, due to the repositioning of Konzum in the marketplace, investments, price reductions and marketing activities.
Agrokor’s companies in the food sector achieved nearly HRK 1.5 billion in sales revenues and EBITDA of HRK 136 million, while its agriculture sector operations posted sales revenues of HRK 466 million and EBITDA of HRK 35 million.
In terms of its fully-year 2017 performance, parent company Agrokor d.d. generated operating revenues of HRK 285 million (-29% year-on-year), with a net loss of HRK 9.8 billion.
Full Year
The Group generated HRK 39.5 billion in operating revenues (-12%), while EBITDA amounted to HRK 623 million.
According to the company's Extraordinary Management Board, most of the work on the settlement agreement with its creditors will be completed by the end of May.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine
