Agrokor: Upward Business Trend, Higher Revenues from Konzum and Tisak than Expected

Lauren Simmonds

The proposal of the draft resolution plan presented by the advisors of Agrokor’s extraordinary administration and the extraordinary commissioner, Ante Ramljak, was made public on the 20th of December, 2017.

As Poslovni Dnevnik writes on the 10th of January, 2018, a new monthly report on the work of Agrokor’s extraordinary administration has been published, covering the period from the 11th of December 2017, to the 10th of January 2018. During this period, business results seem to have followed a positive trend and further financial and operational restructuring of Agrokor and its affiliated companies has continued.

Recorded revenues for both Konzum and Tisak in particular are above expected levels. Konzum achieved better revenue, margins, operating profits and numbers of customers than was initially expected, which is all the result of intense work throughout the previous months. Tisak closely followed Konzum with business that has expanded its offer with a new range, subsequently leading to a better gross margin. The reduction in costs has, to a large extent, influenced the positive trends.

Companies in the food (prehrana) business group also recorded sales growth and operating profits in line with expectations. One of the goals was to increase stock levels as a preparation for the festive season in December. During November, several innovations were launched in the frozen food and oil sections. Companies in this sector continued to steadily improve their business efficiency through cost reduction, product portfolio optimisation, and customer and supplier profitability analysis.

In the agriculture (poljoprivreda) business group, growth in the sales revenues of PIK Vinkovci is particularly evident in November due to the increase in the sale of meat, farm products and a better sugar beet yield than was previously expected. The profit margin is significantly higher than it was when compared to previous months in 2017, as a result of the optimisation of the costs of all agricultural companies, as well as high yields of agricultural products such as crops, and the high profitability of the farms.

The aforementioned draft of the settlement structure proposal presented the desired path and the next steps needed to ensure that Agrokor’s extraordinary administration process could be successfully completed by within the statutory deadline. For those who can read Croatian, all the details related to the draft settlement proposal can be found on a special sub-site:

On December the 13th, 2017, amendments to the reported claims were published by the Commercial Court in Zagreb. In addition to disputes by the extraordinary administration, 29 submissions from 15 other lenders have been received so far and 45 debts have been disputed, including claims filed by the extraordinary administration itself.

Other creditors further challenged an eye-watering total of 13.1 billion kuna in claims. The debt-to-settlement ratio is extremely complex – around 5,700 Croatian and foreign creditors reported about 12,000 claims with different collection rates as well as legal and factual circumstances.

The value of currently recognised claims sits at approximately 41.5 billion kuna, while the total value of the disputed claims is around 16.5 billion kuna. It is estimated that the amount of recognised debts to third parties exceeds 5.5 billion euros, of which 4.5 billion euros relate to claims from the period prior to the launch of the extraordinary administration procedure and the appointment of Ante Ramljak.


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