Loss of Agrokor in 2016 nearly EUR 2 billion?

The loss of Agrokor in 2016, according to the first unofficial estimates coming from well-informed circles, might amount to 12 to 15 billion kunas (1.6-2 billion euros), Tanjug reports, citing today's issue of Zagreb's Jutarnji List.

The final official results of the auditing of the concern's operations, carried out by the auditing company PricewaterhouseCoopers (PWC), will be known in September, whereas the results of the operations of the companies listed on the stock exchange are expected at the end of the current month. All other business reports of the company, including those related to Konzum, will be published in August.

According to unofficial information in Jutarnji List, last year's loss of Agrokor amounts to as much as HRK 20 billion (EUR 2.7 billion). However, once the mutual claims between companies within the concern are written off and other writeoffs are taken into account, the loss might amount to 12 to 15 billion kunas.

As the article says, the loss will be partly covered from the undistributed profit of Agrokor's companies from the past years and from the company's assets.

Although the auditing was expected to show a loss, the said amount is still surprisingly high, especially considering that Agrokor, according to the initial report, had a profit of nearly HRK 400 million (EUR 54 million) in the first nine months of 2016, Jutarnji List writes.

After the consolidated loss, it is added, the total amount of claims will be known this autumn as well, and the establishment of a standing council of creditors and the final reaching of a settlement are also expected.

It is further added that Konzum remains the biggest problem, with no clear direction defined as of yet, and it remains to be seen how much will be earned from the sale of the segment.

– There are differing opinions about what should be done about the retail sector, not just in Croatia, but in the entire region, including the bringing of a new buyer, but those positions are yet to developed. What's certain is that time is not on Konzum's side – Jutarnji List concludes.

Fortenova grupa d.d.

Konzum Zagreb

Agrokor

loss of Agrokor

Agrokor operations

PricewaterhouseCoopers

PWC

Konzum

sale of Konzum

Agrokor results