The process of reaching a settlement under the extraordinary administration procedure of Agrokor is one of the most complex in Croatia and in Europe due to the complexities of Agrokor as a business and the total amount of the debt as well as the large number of creditors, 5.700 of them. This section contains all the news on the process of reaching of a settlement for all the key stakeholders, as well as the latest details and developments.
November Operations Make Konzum Agrokor’s Most Successful Company
10. Jan 2019.
Agrokor published its 21st monthly report on the operations of 16 companies from its three business segments – Retail & Wholesale, Food and Agriculture, pertaining to the period from 11 December 2018 to 10 January 2019.
In the period I-XI/18 the companies’ operations generated HRK 21,508m in revenues, with operating profits amounting to HRK 1,716m.
The most successful company in the reporting period was Konzum with EBITDA exceeding the budget by as much as HRK 157.9m or more than 60 per cent, while revenues outperformed the plan by HRK 111m or 1.4 per cent. Hence Konzum was the main driver of operating profits in the Retail & Wholesale sector.
The greatest contribution to the Group’s operating result comes from the companies in the Food sector, with EBITDA exceeding the budget by HRK 67.6m, where almost all the companies have outperformed their budgeted profits. Companies from the Agri segment have underperformed in terms of both revenues and operating profits as compared to the budget, but have set this off by optimizing costs and intensifying other activities and generated slightly more than HRK 2bn in revenues and HRK 172.3m in operating profits.
As part of the comprehensive preparations for the implementation process, as of the last day of 2018 all future mirror companies of the Agrokor Group, which were so far registered as companies under generic names, have officially got new names. The new names of the companies, that will start their operations once the implementation of the Settlement Plan between Agrokor’s creditors is completed, consist of the old name and the addition ‘plus’. Thus, for example, Konzum shall after the implementation operate under the name Konzum plus, Jamnica under the name Jamnica plus, Zvijezda as Zvijezda plus, Ledo under the name Ledo plus etc.
The old names have been retained in the names of the new companies to preserve the values of their strong brands that will continue to be present on the market under their current brand names after the implementation as well. In the transitional stage the registered seats of all the new companies will be in Zagreb and once the Settlement Plan implementation is completed, they will be returned to the respective cities in Croatia where they are seated now.
Unlike the mirror companies, the parent company Agrokor d.d. will get a completely new name by the end of January and will not use the name „Agrokor“ any more.
The Settlement Plan implementation status and the preliminary assessment of readiness for the Settlement Plan implementation were also presented to the Members of the Interim Creditors’ Council at the session held on 20 December 2018.
As of 1 January 2019 the position as Member of the Ledo Management Board in charge of finance has been assumed by Mr. Filip Mutić. He joined Ledo coming from the Atlantic Group, where he was in charge of strategic financial management, controlling and IT at the operating companies of the Atlantic Group in the Adria region. Amongst others, he gained his business experience in the international financial management and advisory companies PWC and Deloitte in Croatia and the region. At Ledo his focus will be on improving the processes of business and financial planning, corporate governance and reporting, as well as risk management.