After many months of audit, we finally know at least partial financial situation of Agrokor’s companies.
Agrokor’s government-appointed extraordinary administration has announced the most important findings of the audited financial statements for the key Agrokor Group companies for 2015 and 2016, reports N1 on October 5, 2017.
The results have been presented by Ante Ramljak, the government-appointed extraordinary commissioner. He stressed that they would only give audit results for some of the Group’s companies, but not for the main Agrokor holding company, which will be announced later.
“First of all, I would like to thank all the people who worked on this report. It really was not an easy job,” Ramljak said at the beginning. “You know that Agrokor as a group is a complex system with various relationships among companies, and it was not easy to determine their exact nature. We have come up with these results which we believe are now realistic results which reflect the real value of the company.”
The audit contract was signed with PwC on 2 May, and it included 27 individual companies. “Some of the reports contain significant corrections in comparison to previously released financial statements for 2015 and 2016. Without the Lex Agrokor, these reports would bring into question the future of the whole group and the company. The bankruptcy procedures would have been opened,” said Ramljak, adding that some items were wrongly accounted for in 2015, while other items were incorrectly evaluated.
Net loss of all companies in the Agrokor’s retail division amounted to 2.247 billion kunas in 2016, of which Konzum and Tisak accounted for over 95 percent. The agriculture division lost 327 million kunas, of which almost 80 percent was a loss by PIK Vinkovci, while the food division posted losses of 741 million kunas.
In 2015, Konzum initially posted a profit of 235 million kunas, but the actual result was a loss in the amount of 1,407 million kunas.
Tisak also had adjustments in value. Its capital loss was 202 million kunas.
“The food division is the best part of the company. They have stable business results and post largest individual profits. I think there is no question they will be able to continue operating. Ledo Group in 2016 had a loss of 270 million kunas, but still has a strong capital of 1,314 billion kunas,” said Ramljak. “Corrections for certain companies are significant, but it is important to point out that most of them are one-offs.”
Operational restructuring of the companies is being carried out in parallel with financial restructuring, and the most significant advances in this respect are expected in the companies which had the most substantial adjustments, such as Konzum. Despite the circumstances, the companies have successfully completed the summer season and are expected to further improve operational results in the upcoming period.
Negative capital in individual companies resulting from the adjustments will be addressed through a proposal of debt settlement between the management and the creditors.
As announced, a revised consolidated financial statement for the whole Agrokor Group will be published on Monday.