Croatia's Fortenova Group Sees Retail Revenue Up 3% In 2019
Croatian conglomerate Fortenova Group has reported full-year revenue of close to HRK 24 billion (€3.18 billion) for 2019, with its retail and wholesale arm up 3%.
The business, which commenced trading in April of last year following the winding down of the Agrokor Group, posted adjusted EBITDA of HRK 1.7 billion (€220 million) for the period.
Fortenova Group encompasses 17 core companies across three main business areas – Retail and Wholesale, Food, and Agriculture.
Total revenues in its Retail and Wholesale business stood at HRK 13.9 billion, while Food reported revenues of HRK 8.3 billion, and Agriculture HRK 2.6 billion.
Retailer Konzum was the strongest performing business in its Retail and Wholesale arm, posting an EBITDA increase of 25.5% in the period, the group said.
Total revenues at the retailer, which is Croatia's largest, grew by 4.5%, despite it occupying a smaller store footprint in the period.
Its Food business was boosted by a strong performance in its edible oils and meat businesses, while its Agriculture arm saw a revenue increase from PIK Vinkovci, as well as a profit boost from the Belje business.
"The growth of all key performance indicators, particularly EBITDA, as well as the fact that we secured a smooth operational continuity, have proved that the numerous transformational processes that have been taking place at Fortenova Group with a view to achieving significant cost control and improving efficiency, have borne fruit," commented Fabris Peruško, CEO of Fortenova Group.
Commenting on the impact of COVID-19 on its operations, Peruško added that measures taken at the end of Q1 2020 to adjust its operations were "primarily directed at maintaining its strong liquidity and employment in order for the Fortenova Group to be ready to move on once the crisis is over”.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.