Croatian retail group Agrokor has announced plans to split its stores in Bosnia and Herzegovina under two banners starting from August.
After a meeting with local suppliers in Sarajevo, the Croatian government’s adviser for Agrokor, Ante Ramljak, said that 83 of the stores the group operates in the country will be transferred to the Mercator banner, while the remainder will continue to trade under the Konzum banner.
According to the company, this solution has been endorsed by suppliers from Bosnia and Herzegovina, expressing confidence that Agrokor will retain the trust of suppliers and ensure the long-term survival of the business model.
Financial Results
Ramljak also said that outstanding debts in Bosnia and Herzegovina amount to BAM 80 million (€40.9 million), of which BAM 60 million (€30.6 million) is owed to local suppliers, adding that they will be paid in September.
According to the financial results for the first five months of 2017 published by Agrokor, Konzum achieved a turnover of HRK 3.43 billion (€464.5 million) in Croatia, while revenues at its Bosnian unit Konzum BiH reached HRK 943 million (€127.7 million). However, both companies had a negative EBITDA of HRK 62 million (€8.3 million) and HRK 44 million (€5.9 million), respectively.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine
