Croatian business conglomerate Fortenova Group said that net sales revenues in its Retail & Wholesale division fell by 3.9% in the first half of the year, while its Food arm saw a 8.3% decrease in sales.
However, EBITDA in its retail arm, which includes the Konzum chain, grew by HRK 37 million (€4.92 million), the group said, booted by a strong start to the year and the introduction of measures taken to adjust its operations due to COVID-19.
HoReCa Issues
Its Food segment, which is primarily linked to the HoReCa sector, saw EBITDA drop by 11.5% in the period, however it reported an increase in market share in edible oils, beverages and frozen food.
Fortenova's Agriculture division put in a solid performance, however, seeing revenue up 6% due to an increase in pig prices, as well as an EBITDA increase of 41.5%.
On a group level, Fortenova generated consolidated revenues of HRK 9.91 billion (€1.32 billion) and EBITDA of HRK 531.9 million (€70.1 million).
Satisfactory Performance
“Given the impact of COVID-19 on the first half of 2020, we are very satisfied with our operations," commented Fabris Peruško, Fortenova chief executive.
"When it comes to our consumers and the community in which we operate, the most important thing was to keep the supply chain running without interruption and to protect the safety of our employees and our customers, and when it comes to the position of Fortenova Group – to reduce the negative effects of the crisis as much as possible by implementing measures intended to adapt our operations and to manage liquidity reserves as firmly as possible."
The group said that it has managed its cash and profitability levels 'very well' during the COVID-19 crisis, with James Pearson, its executive director for finance, adding, “Fortenova Group now has a very clear and agreed strategy to deliver financial health of the Group.
"This we will continue to deliver on and we expect to fully comply to our lender requirements going forward."
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
