Agrokor successfully closed the challenging year 2017 with solid operating results in line with plans and with focus on profitability
Agrokor’s Extraordinary Administration published the audited consolidated results of the Agrokor Group and Agrokor d.d. for the year 2017. The scope of consolidation comprises 105 companies in which Agrokor exercises control, out of which 52 are in Croatia. The financial statements were prepared on a non-going concern basis (where the assumption of going concern is not satisfied) and under the assumption that over the course of 2018 a settlement would be closed with the creditors.
In view of the events that preceded the introduction of extraordinary administration at Agrokor, the fact that prior to 10 April, 2017 the company had almost gone bankrupt which was the reason why it entered the restructuring process, as well as that the operations of the Agrokor Group were only normalized in the second half of 2017, the Extraordinary Administration believes that the Agrokor Group generated solid operating results in 2017.
The parent company, Agrokor d.d., generated operating revenues in the amount of HRK 285m in 2017, which is a drop of 29 per cent as against the HRK 399m generated in 2016. EBITDA[1] amounted to HRK (250)m in 2017 or HRK 2.8m if the net effect of restructuring costs and management fee is excluded. The net loss in 2017 amounted to HRK 9.8bn. In 2016 EBITDA amounted to HRK (1,033)bn, with costs related to the so-called IPO project booked in the amount of HRK (2,265)m, out of which HRK (1,077)m affected EBITDA. The so-called IPO costs are part of the criminal charges filed by the Extraordinary Administration of Agrokor against its former CEO Ivica Todorić and other responsible persons. Net of the costs related to the so-called IPO project, EBITDA in 2016 would have amounted to HRK 44m.
As at 31 December, 2017 the Company’s total liabilities, given that all liabilities had become due on 10 April, 2017 with loans converted from long-term to short-term, including also the new debt incurred during the Extraordinary Administration Procedure (SPFA), amounted to HRK 32bn.
Major changes at Agrokor d.d. are visible in the Company’s balance sheet, as capital and reserves in 2017 were reduced by HRK 9.8bn. This is the result of investments in subsidiaries and affiliated companies having been impaired by HRK 5,584m, in line with the company valuations set forth in the viability plans, impairments of receivables from affiliated companies in compliance with the results of the EPM by HRK 2,226m, impairments due to assessments of collectability of loans granted in the amount of HRK 840m, given that such placements were mostly unsecured, the loss of HRK 467m due to the alienation of stakes in subsidiaries resulting from repo transactions and HRK 676m of remaining net effect from the profit and loss account.
In 2017 the Agrokor Group generated HRK 39.5bn operating revenues, which is 12 per cent less compared to HRK 44.9bn[2] of operating revenues generated in 2016. The Group’s EBITDA[3] in 2017 amounted to HRK 623m, ie. HRK 925m after exclusion of the restructuring costs, while in 2016 it was HRK 1,066m.
The individual reports of the operating companies will be published once audited, during the course of May.
Presentation of audited operating results 2017 – Agrokor d.d. and Group
Audited consolidated financial results – Agrokor Group 2017
Audited operating results Agrokor d.d. 2017
[1]EBITDA excludes all effects of value adjustments.
[2] Results 2016, restated, as presented in the audited financial statements for the year 2017
[3]EBITDA excludes all effects of value adjustments.
