The Croatian group Fortenova recorded like-for-like revenue growth of 14% to HRK 18.8 billion (€2.5 billion) in the first half of its fiscal year, mainly thanks to the integration of Mercator .
Consolidated EBITDA for the first six months of the year exceeded HRK 1 billion (€130 million), 74% more than the same period last year.
On a like-for-like basis, adjusted consolidated EBITDA increased by 19%.
Businesses in Fortenova’s food division saw the strongest revenue growth, while the agriculture unit saw the fastest EBITDA growth.
The fastest growth in turnover was recorded by companies in the food division of the Fortenova group, while the agricultural division recorded the fastest growth in EBITDA.
Net income for the period, after excluding currency effects, amounted to HRK 12 million (€1.6 million).
In the first half of 2021, the company recorded a loss of HRK 213 million (€28.4 million) after excluding currency effects.
“Excellent operating results”
Fabris Peruško, Fortenova Group CEO and Board Member, commented: “These excellent operating results were generated despite the negative effects of inflation on rising labor prices, of energy and raw materials and the resulting increase in costs through the 22 tourist season in Croatia is almost at the level of the record year 2019, which is an additional driver for our results which will show all their earnings in the third quarter of the year, which is the most important period for us.
“In the longer term, the expected changeover to the euro will have an additional long-term positive impact on the group’s credit profile, as after the conversion, 80% of our business will be generated in euros. In addition, the risk of change for our debt will be eliminated.”
He noted that the process of transformation of ownership and disposal of shares held in the Fortenova group by Sberbank is continuing and that in the first half of 2022 the final prerequisites for a court decision on the termination of the administrative procedure extraordinary in Agrokor will have been encountered.
James Pearson, Fortenova’s chief financial officer, called its first-half performance “very positive” as it focused on delivering the market and achieving planned operational improvements.
“Following the significant deleveraging achieved by the Fortenova Group in 2021 through transactions related to Mercator, the Frozen Food Business Group and a number of disposals of non-strategic activities and assets, we continued in 2022 to generate higher revenues and operating profits, which has on a further decline in the leverage ratio, which now stands at 3.94 times, reflecting the growing financial strength of the group,” added Pearson.
© 2022 European supermarket magazine – your source for the latest retail news. Article by Dayeeta Das. Click on subscribe register for ESM: European Supermarket Magazine.