Zvijezda Suffers Loss of 57.8 Million Kuna

Lauren Simmonds

Losses for Zvijezda as the aftershocks of the Agrokor earthquake still cause tremors…

The Agrokor crisis which broke earlier this year was by far one of the largest and most potentially dangerous situations to have hit Croatia in very many years. The country’s most significant economic player and largest privately owned company came into dire straits earlier this year when it was revealed that it was struggling with incomprehensible amounts of financial issues owing to years of mismanagement at the hands of its former administration. 

The ailing company, which you can read much more about by clicking here, was quickly and readily taken over by a government appointed extraordinary administration team, headed by Ante Ramljak, and was fortunately rescued. Despite its somewhat dramatic rescue, the Agrokor crisis did not manage to pass without considerable consequences for not only itself, but for all the other affiliated companies underneath the formerly stable umbrella of the Agrokor Group. Zvijezda, a brand that can be found on any shelf in any Croatian store, is just one of them.

As Poslovni Dnevnik reports on the 9th of December, 2017, Zvijezda’s adjustments and decrease in value has amounted to 86.3 million kuna.

On Friday the 8th of December, 2017, Zvijezda published a framework view of its business results for the period from the beginning of this year to the end of October, indicating that the estimated EBITDA in that period amounted to 49 million kuna, with revenues of 549 million kuna and a significant loss after tax of 57.8 million kuna.

As far as Zvijezda’s business outlook is concerned, it has been stated that positive cash flow provided for regular and uninterrupted production and a stable supply of raw materials at competitive market prices since mid-September.

One other part of the report stated that inadequate quantities and higher prices of butter have had a positive impact on the sale of margarine, which increased in the month of October this year. That same month, exports to Italy began as a new market, and some other new export markets are currently in the works, according to the rest of the report.

Zvijezda published its framework of business results in accordance with the law on the procedure of extraordinary administration in companies of systemic significance for the Republic of Croatia, which the Agrokor Group falls under. According to that law, the cxtraordinary commissioner is obliged to submit a report every single month on the economic and financial condition of companies covered by the procedure of extraordinary administration.


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