Fortenova Group nurtures open and transparent communication
Half year 2020 Financial results presented to the DR holders08/28/2020
Over the first six months of 2020 the Group thus generated consolidated revenues of almost HRK 10 billion (9,910 million) and consolidated EBITDA of HRK 531.9 million. The consolidated results pertain to Fortenova grupa d.d. and its 95 subsidiaries, without Mercator, the transfer whereof to Fortenova grupa d.d. is expected by the end of the year. A strong cash position of HRK 1.5 billion on its accounts and stronger market shares were the features that Fortenova Group concluded its operations with in the first half of 2020.
According to non-consolidated indicators, the core businesses non-consolidated net sales revenues for the period were 4.3 per cent lower than in 2019, which was expected in view of the global economic lockdown that marked the H1/2020 operations due to measures introduced to prevent the spread of COVID-19, and EBITDA was improved by almost 3 per cent against the same period of 2019.
While net sales revenues in the Retail & Wholesale and Food segments dropped by 3.9 per cent and 8.3 per cent, respectively, total revenues in agriculture grew by six per cent due to the increase in pig prices. Agriculture segment also features excellent EBITDA growth rate of 41.5 per cent in H1/2020 against the previous year. Retail EBITDA grew by HRK 37 million, with the major positive effect accounted for by Q1/2020 and the implementation of measures taken to adjust operations to COVID-19 circumstances. The lockdown conditions were mostly reflected in the Food operations, particularly the segment that primarily leans on the HORECA channel and tourist flows, resulting in a drop of EBITDA by 11.5 per cent compared to the same period of 2019 though market shares increased in oil, beverages and frozen food and business in Serbia performed well.
“Given the impact of COVID-19 on the first half of 2020, we are very satisfied with our operations. When it comes to our consumers and the community in which we operate, the most important thing was to keep the supply chain running without interruption and to protect the safety of our employees and our customers, and when it comes to the position of Fortenova Group – to reduce the negative effects of the crisis as much as possible by implementing measures intended to adapt our operations and to manage liquidity reserves as firmly as possible, which we have successfully done, as shown by the six-months results. The period also featured very positive steps in the process of transferring Mercator and Dijamant to Fortenova Group and optimism regarding the results of the tourist season, which was way better than expected” – said Fabris Peruško, Chief Executive Officer of Fortenova Group at the presentation of the H12020 business results to DR Holders, i.e. owners of the company.
Commenting on the financial results of H12020, James Pearson, Executive Director for Finance of Fortenova Group, said that “in view of the negative impact of COVID-19 we have managed our cash and profitability very well”, stating further: “Fortenova Group now has a very clear and agreed strategy to deliver financial health of the Group. This we will continue to deliver on and we expect to fully comply to our lender requirements going forward”.
" Agrolaguna is a company engaged in winemaking, olive growing and cattle farming on 1200 ha of cultivated land. "
" Konzum is the leading retail chain in Croatia with 700 stores serving more than 650.000 customers daily. "
" Belje is the biggest agricultural company in the region with 20,000ha of arable fields and cattle raising on over 20 farms, which ensures From field to table product traceability for Belje cheeses, traditional cured meat products and wines. "
" Jamnica is the largest Croatian producer of mineral and spring waters and soft drinks with tradition spanning 180 years. "
" Ledo is the largest manufacturer of industrial ice cream and the largest distributor of frozen food in Croatia. "
" PIK Vrbovec is the leading company in Croatian and region's meat industry with 80 years of tradition in the production and processing of meat products. "
" Zvijezda is the largest producer of edible oils in Croatia and the only producer of margarine, vegetable fat, mayonnaise and delicious mayonnaise-based products and ketchup in Croatia. "
" Tisak is the biggest retail newsstand chain with over 900 locations and Croatia's leading distributor of print and tobacco products, prepaid top-up cards, telecom operators' start packages and other products. "