Croatian food producer and retailer Agrokor, which is in the process of being taken over by its creditors, reported a big rise in first-half core earnings, as cost cuts helped to offset lower revenues.
The largest private company in the Balkans with 52,000 staff said earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 70.5% year-on-year to 729.7 million Croatian kuna (€98.3 million).
That was despite a 13.3% drop in non-consolidated revenues to 11 billion kuna (€1.48 billion).
Divisional Performance
Agrokor's Retail and Wholesale business group posted revenue of 6.1 billion kuna and 70.2 million kuna in operating profit, which was ahead of expectations.
Its Konzum retail banner posted revenue of 4.1 billion kuna for the period.
The group's Food business recorded revenue of 587 million kuna, while EBITDA for this division was 132.7 million.
The group said that its Agriculture division posted a lower-than-expected revenue of 991 million kuna, and an operating profit of 74.6 million kuna, due to a 'significant decrease' in the price of certain cheese and pork products.
Administration
Agrokor was put under state-run administration in April 2017, crippled by debts built up during an ambitious expansion drive.
Its creditors, which include local and foreign banks, bondholders and suppliers, last month voted to approve a debt settlement deal which includes a debt-for-equity swap and some loan write-offs to avert bankruptcy.
News by Reuters, edited by ESM. Additional reporting by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
