Croatia's Agrokor Reports Positive 9M Performance Across All Sectors
Croatian food-to-retail consortium Agrokor has reported positive results across all sectors (Food, Agriculture, Retail and Wholesale) for the first nine months of 2017.
Revenues in the Retail and Wholesale segment, which includes Konzum Hrvatska and Konzum BiH, Tisak, Velpro Center and Velpro BiH, amounted to HRK 11.53 billion (€1.52 billion), with EBITDA of HRK 13 million (€1.72 million).
In the first nine months of this year, companies in the group's Food segment (Jamnica, Roto dinamic, Sarajevski kiseljak, Ledo, Frikom, Ledo Citluk, Zvijezda, Dijamant and PIK Vrbovec) achieved revenues of HRK 6.5 billion (€860.2 million) and EBITDA of HRK 1 billion (€132.3 million).
Grocery retailer Konzum recorded HRK 6.86 billion (€907.9 million) in revenues, with EBITDA of HRK 220 million (€29.1 million), positively influenced by a more than 10% reduction in operating costs year-on-year. Revenue in September was lower due to the closure of over 60 stores and reduced wholesale business, as well as the result of unseasonably poor weather in September.
Gross margin in September was influenced by lower sales and continued investment in prices and promotions, the company said. Share of promotions has increased by about 5%, in order to stabilise footfall and attract customers.
Out of Stock
The company said that its out of stock levels are 'still above the desired level'; therefore, still impacting negatively on turnover.
This is mainly due to the unwillingness of insurance companies to provide cover to suppliers to ensure delivery of goods, particularly private label, while some suppliers some suppliers are unwilling even to agree to advance payment for supply.
© 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