Croatia Fortenova set to make a profit in 2021

ZAGREB (Croatia), June 22 (SeeNews) – Croatian group Fortenova, successor to collapsed food retailer Agrokor, said it recorded a net profit of 523 million kunas ($73 million/70 million euros ) last year, an improvement of 1.8 billion kuna compared to the loss recorded in 2020.

The Fortenova Group’s total consolidated revenue from continuing operations in 2021 amounted to 31.4 billion kuna, with a consolidated adjusted EBITDA of 1.955 billion kuna, after the gain from the sale of its frozen food unit , the company said in a statement on Tuesday.

Fortenova announced in September that it had successfully completed the sale of its frozen food business to UK-headquartered Nomad Foods for 615 million euros ($712 million).

“These results correspond to consolidated revenue growth from continuing operations of 65% and adjusted consolidated EBITDA growth of 52% compared to 2020. The main driver of the consolidated results performance is due to [Slovenian top retailer] Mercator Poslovni Sistemi, consolidated in Fortenova Group results from May 1, 2021,” Fortenova explained.

Compared to the 2020 end-of-year results, the group’s 18 core business companies, excluding the frozen food business which was sold and including the full-year Mercator group companies, recorded growth in their turnover on a like-for-like basis. 5% revenue, 20% growth in EBITDA and a 64% increase in EBIT.

The Fortenova Group ended last year with 1.872 billion kuna in cash in its accounts.

According to the statement.

The Fortenova Group, which is now able to pursue a regional investment cycle worth more than 130 million euros in 2022, as all its investments are focused on more sustainable and efficient operations, said Fabris Perusko, CEO of Fortenova Group, in the statement.

“We are continuing to implement our plan to strengthen the Group’s finances and simplify it. Thanks to transactions with Mercator, Frozen Group as well as a number of non-core and real estate sales, Fortenova reduced its debt in 2021 by 4.4 billion kuna, which led to an underlying leverage ratio of 4 .3x at the end of the year,” James Pearson, Fortenova Group Chief Financial Officer, said this was a significant decrease from the 6.8x leverage ratio it had at the start. of the year.

In April, Fortenova said its biggest shareholder, top Russian lender Sberbank, had signed an agreement to sell its more than 40% stake in the group to Hungarian asset manager Indotek.

Earlier this month, Fortenova said it was 42.51% owned by SBK ART LLC (whose ultimate majority owner is Sberbank of Russia), while 7.39% was owned by VTB BANK (EUROPE) SE. During the restructuring, a sanctions safeguard mechanism was put in place which prevents the shareholders subject to sanctions from exceeding 50% of the capital, independently or jointly.

Fortenova is the largest private company in Croatia and one of the largest companies in South Eastern Europe. It has more than 50,000 employees and operates in three main businesses: agriculture, retail and food, as well as non-core operations. It has manufacturing plants in several countries. Along with Mercator, it also owns the largest food retail chain in Croatia, Konzum. Konzum and Mercator together have a significant market share in Bosnia.

(1 euro = 7.519 Croatian kuna)

Poslovni Sistem Mercator dd is one of the largest companies in SEE, for more reference take a look at top 100 companies

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