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Fortenova grupa d.d. presents financial results

07/02/2020

Last year, marked by increasing revenue and adjusted EDITDA, ends with strong cash position while Q1 2020 shows best results in the past three years

 

In presenting the results of last year's operations to its DR holders, Fortenova Group  highlighted the growth of both most important performance indicators in 2019 – total revenue and EBITDA, accompanied by building strong liquidity reserves due to which it entered the year 2020 with a cash position of HRK 1.6bn.

The pro forma consolidated total revenue of Fortenova grupa d.d. in 2019 reached almost HRK 24 billion (23,946 million), with consolidated adjusted EBITDA amounting to almost HRK 1.7bn (1,662 million). Given that Fortenova grupa d.d. has been operational since 1st April 2019, the presented results are the pro forma consolidated results of Fortenova grupa d.d. and the 102 companies, net of Mercator, the transfer of which to Fortenova grupa d.d. is not yet completed.

The Core segments, which include the results of 17 core companies of  Fortenova grupa d.d., companies from the business areas of Retail and Wholesale, Food and Agriculture, generated a total of HRK 24,805 million in unconsolidated revenues in 2019, or a growth of 3.6 % against the year 2018. At the same time unconsolidated EBITDA  of the Core segments saw a year-on-year growth of 13 % and amounted to HRK 1,917 million.

All Fortenova grupa d.d. Core segments experienced total revenue growth in 2019 – Retail and Wholesale of 3%, while both Food and Agriculture generated 4% higher revenues than in the year 2018. Total revenues generated in Retail and Wholesale amounted to HRK 13,934 million, in Food HRK 8,267 million and in Agriculture HRK 2,604 million.

Having maintained the same level of EBITDA as in the previous year, with HRK 1,132 million realized in 2019 the Food Business segment made the largest contribution to the Group total. The highest positive effect on total revenue growth in Food was accounted for by the edible oils and meat divisions.

The highest growth of revenue and EBITDA in the Retail and Wholesale business area was accounted for by Konzum, whose EBITDA in 2019 outperformed the one from the previous year by 25.5 %. Total revenues generated by Croatia’s largest retail chain in 2019 grew by  4.5%, in spite of the fact that it had a lower number of stores than in the previous year. In the Agriculture segment the increase in revenue was mostly accounted for by PIK Vinkovci, while the highest growth of profits in 2019, was generated at Belje with HRK 62 million.   

Fortenova grupa d.d. was able to continue the favourable operating trends in Q12020, with consolidated revenues, net of Mercator, amounting to HRK 4.814 million, while adjusted consolidated EBITDA for the period amounted to HRK 93.6 million.

At the same time, in Q12020 the Core segments generated unconsolidated total revenue growth of 8 %, while the unconsolidated EBITDA for the quarter amounted to HRK 245 million or 90 % more compared to the results generated by Agrokor d.d. in the period preceding the Settlement Plan implementation. 

„The growth of all key performance indicators, particularly EBITDA, as well as the fact that we secured a smooth operational continuity, have proved that the numerous transformational processes that have been taking place at Fortenova grupa with a view to achieving significant cost control and improving efficiency, have borne fruit. Furthermore, as already known, over the course of 2019 the company refinanced its SPFA debt, implemented changes in organisation and governance and obtained a new capital and ownership structure. At the same time, Fortenova Group has been settling all its liabilities regularly and without exception and entered the year 2020 with a very strong cash position of HRK 1,635 million on its accounts. Hence the measures taken by the Group at the end of Q12020 in order to adjust its operations to the impact of the COVID-19 crisis were primarily directed at maintaining its strong liquidity and employment in order for the Fortenova grupa to be ready to move on once the crisis is over” – said Fabris Peruško, CEO of Fortenova Group at the presentation of the 2019 results to the holders of Depositary Receipt s, ie. the owners of the company.

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