Croatia's Konzum posts 113 mln kuna (15.2 mln euro) 11-mo EBITDA - Agrokor

Croatia's Konzum posts 113 mln kuna (15.2 mln euro) 11-mo EBITDA - Agrokor Author: Radomir Ralev

ZAGREB (Croatia), January 11 (SeeNews) - Croatian retailer Konzum, a member of ailing concern Agrokor, reported earnings before interest, taxes, depreciation and amortisation (EBITDA) of 113 million kuna ($18.1 million/15.2 million euro) in the 11 months through November, according to preliminary estimates released by the concern.

Last month, the retailer reported an EBITDA of 114 million kuna in the January-October period.

Konzum's EBITDA margin came in at 1.4% in the 11 months through November, while revenues totalled 8.1 billion kuna, Agrokor said in a statement on Wednesday.

Total revenue in November exceeded the planned level, while the declines seen in previous periods have been significantly reduced, Agrokor noted.

"Activities undertaken by way of intensive marketing communication, a more aggressive approach to customers through attractive promotional sales, better inventory management and the reduction of stock-outs are the reason for the improved revenue realization," the concern added.

Konzum posted a gross margin of 20.5% in November.

Overall, companies in Agrokor's retail and wholesale segment, which also includes news stand operator Tisak and wholesaler Velpro, recorded a negative EBITDA of 149 million kuna in the eleven months through November, with a margin of -1.1%.

The combined revenue of Konzum, Tisak and Velpro totalled 13.4 billion kuna, and exceeded the revenues of the concern's food and agriculture segments which raised 7.6 billion kuna and 2.5 billion kuna, respectively.

"Velpro and Konzum BiH, unlike Konzum in Croatia and Tisak, are experiencing bigger challenges in negotiations on deliveries of certain goods and this has affected their revenue, and consequently their margin and EBITDA," Agrokor explained.

Konzum BiH saw an EBITDA of a negative 93 million kuna, with a negative margin of 5.0%. The Bosnian unit of the retailer recorded revenue of 1.9 billion kuna and a gross margin of 15.7%.

The decline in revenues in November, Agrokor explained, is mainly caused by stock-outs in stores, with stocks 25% below the level required during October and November, as a consequence of suspended deliveries from some suppliers.

It admitted that the anticipated recovery of deliveries and turnover has been somewhat slower than expected and that there is still limited or poor cooperation with around 10 suppliers.

(euro=7.44428 kuna)

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