Agrokor has net losses of EUR 293 million in retail in 2016 – Negative capital of Konzum at EUR 1 billion

The audit report has shown that the retail segment of Agrokor recorded a net loss of HRK 2.2 billion (EUR 293 million) in 2016, of which HRK 1.9 billion in Konzum, stated the extraordinary trustee of Agrokor, Ante Ramljak.

The audit in the retail segment encompassed Konzum and Tisak, and the total negative effect in 2015 and 2016 in the said segment amounted to HRK 2.5 billion (EUR 333 million).

In 2016, following the value adjustment, Konzum had a negative capital of HRK 7.6 billion (around EUR 1 billion), Ramljak said while presenting the results of the auditing of financial reports of companies from the Agrokor system, performed by PricewaterhouseCoopers (PWC).

He said that Konzum's loss had amounted to HRK 1.4 billion (EUR 186.5 million) in 2015, whereas the 2015 report by Agrokor, while it was being run by Ivica Todoric, claimed a profit of HRK 247 million (EUR 33 million).

Commenting on Todoric's blog posts which say that differences in reports might be due to a change in the business policy, Ramljak said that “these are not correct assumptions”.

– The key figure in the value adjustments is HRK 10 billion – EUR 1.3 billion. For know, these are so-called “bookkeeping irregularities”. Once consolidated reports have been completed, I'll be able to tell you whether I will consider filing criminal charges. The State's Attorney Office of the Republic of Croatia is familiar with these figures.

The agricultural companies – Belje, PIK Vinkovci and Vupik – incurred a net loss of HRK 300 million (EUR 40 million) in 2016, and the food companies – Ledo, Jamnica, Zvijezda and PIK Vrbovec – had losses of HRK 700 million (EUR 93.2 million) in 2016.

In 2015 and 2016, the total negative effect on the net profit in agriculture reached HRK 200 million (EUR 26.6 million), whereas, in the food sector, it amounted to HRK 1.4 billion (EUR 186.5 million).

The most significant negative effect on the 2016 profit consists of impairment allowances of 50% for mutual receivables within the Agrokor Group, the audit report shows.

Ramljak said that the auditing had encompassed 27 companies subject to legal audit in Croatia, three companies in Serbia and three in B&H, thereby encompassing 99% of the group's revenues and 98% of the groups profits in 2016.

Fortenova grupa d.d.

BELJE d.d. Darda

PIK Vinkovci d.d.

VUPIK d.d. Vukovar

LEDO d.d. Zagreb

JAMNICA d.d. Zagreb

ZVIJEZDA ZAGREB

PIK Vrbovec d.d. Vrbovec

Konzum Zagreb

Tisak d.d. Zagreb

PWC

Konzum loss

Ivica Todoric

Agrokor audit report

Agrokor loss

Agrokor operations

Ante Ramljak

Agrokor negative capital