Fortenova Group has reported 35% year-on-year growth in consolidated revenue from continuing operations in the first half of its financial year.
The adjusted consolidated EBITDA for the period increased 14%, with net profit amounting to HRK 318 million (€42.45 million), compared to a loss reported in the same period last year.
The company also reported strong liquidity in the first half, with cash worth more than HRK 1.8 billion (€240 million) in its account.
'The Best First-Half Ever'
Commenting on the company's performance, Fortenova group chief executive Fabris Peruško, said, "With consolidated revenues from continuing operations of HRK 12 billion, adjusted consolidated EBITDA of HRK 1.1 billion and HRK 318 million of net profit, we can proudly say that behind us is the best first half of the year ever, not only in terms of performance, but also in terms of several major projects having been closed, which have placed the group on track in terms of strengthening its profitability."
One such project was the integration of Mercator, which was consolidated into the group's financial statements since 1 May 2021.
Peruško added, "Given the excellent tourist season, the group is continuing to trade strongly in the third quarter, and this along with the synergies that we are achieving in retail, and the expected closing of the frozen food business group sale to Nomad Foods will mean that Fortenova Group's financial position will continue to improve."
In terms of non-consolidated performance, Fortenova's total net sales revenue increased by 2.4% across 21 companies in the retail, food and agriculture divisions.
EBITDA grew by 12.5% in this period, while EBIT was 39.5% higher compared to the same period last year, when Mercator was included on a like-for-like basis.
The company's retail division saw revenue growth of 1.2%, while EBITDA grew 10.9% and EBIT grew 65.9%, with Mercator included on a like-for-like basis.
The company attributed this growth to business synergies, improved general trading as well as the wholesale segment in Konzum experiencing a strong recovery, following the relaxation of COVID-19 restrictions and the opening of HoReCa channels.
Due to a significant year-on-year drop in the selling prices of pork, the company's agriculture division saw revenue decline by 12.5%. As a result, the division's EBITDA declined by HRK 19 million.
James Pearson, Fortenova Group's executive director of finance, said, "In the first half of 2021, Fortenova Group was very focused on in-market execution, delivering planned improvements to the business, and completing a number of key projects. […] Overall, this has been a very positive first half for the group."