The Food and Agriculture divisions of the Agrokor food and retail group continued to operate at a profit in the first three months of 2018, while the Retail and Wholesale division posted an operating loss, according to the latest monthly report by the state-appointed emergency administration released on Monday.

The report said that the bulk of the work on reaching a settlement with the company’s creditors was expected to be finalised before the end of this month.

The report, covering the period from April 11 to May 10, shows that the Retail and Wholesale division generated a sales revenue of 2.87 billion kuna (€388 million), with 4.2 million kuna (€569,000) of negative earnings before interest, taxes, depreciation and amortisation (EBITDA).

“Although slightly lower-than-planned revenues were generated in the period, activities related to Easter holidays resulted in revenues in March exceeding predictions at Konzum retail stores in Croatia and in Bosnia and Herzegovina,” the report said.

Konzum, the largest company in Agrokor’s Retail and Wholesale division, posted a sales revenue of 1.96 billion kuna, and an EBITDA of 26 million kuna.

Preliminary data showed that the Food division posted a sales revenue of 1.5 billion kuna and an EBITDA of 136 million kuna. “Despite a slight drop in sales revenue, the generated operating profit (EBITDA) exceeded the plan,” the report said.

Agrokor’s Agriculture division generated a sales revenue of 466 million kuna and an EBITDA of 35 million kuna. The highest revenue, of 281 million kuna, was generated by Belje, a company based in eastern Croatia, with an EBITDA of 25.5 million kuna.

“Agriculture sector revenues for March were 2.3 percent lower than expected, with a significant drop in pork prices partially compensated by other activities such as sales of animal feed, wine, oil and cereal crops… In the forthcoming period we expect the pork market to recover, which would result in improved EBITDA,” the report said.

The emergency administration also published the audited consolidated results of the Agrokor Group and its holding company Agrokor d.d. for the year 2017, which were described as very good considering that the company had almost gone into bankruptcy. The individual reports on the group’s operating companies will be published once audited, in May 2018.

The costs of consultants hired to advise in Agrokor’s restructuring increased by 1.6 million kuna in March 2018 to 27.26 million kuna, including restructuring costs which accounted for 14.5 million kuna.

Since the appointment of the emergency administration on April 10, 2017, the total costs of Agrokor d.d., including the emergency administrator’s fee, wages for the employees and consultant fees, was 580.5 million kuna, the bulk of which – 321.38 million kuna – accounted for costs of consultants.

(€1 = 7.39 kuna)

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