RECORD REVENUES OF THE AGROKOR GROUP IN 2002
Apr 29, 2003
THE AGROKOR GROUP BECOMES THE BIGGEST PRIVATE COMPANY
The year 2002 will be recorded as the most successful year in Group history. With record revenues amounting to HRK 6,668,018 thousand, Agrokor has definitely become the biggest private company in the country. Total revenues grew at a rate of 40.4% compared to the previous year. With HRK 344m operating profits, representing a year-on-year growth of 22.7%, the Group generated an enviable result in regular operations. Net profits amounted to HRK 101m. Such strong growth is particularly significant having been generated in an environment of further opening and liberalization of the Croatian market, decreasing protection and a very aggressive entry of competitive brands and foreign retail chains, bringing along a number of competitive products and making pressure on the reduction of profits in production. Intensive investments continued in 2002, amounting to HRK 529m and growing at a rate of 67.9% compared to the previous period. A significant year-on-year increase in exports of 47.8% was recorded as well. Exports grew faster than revenues, resulting in a growth of the share of exports in total sales revenues. Agrokor's Food group recorded a rise in revenues of 8% compared to previous year, with the increase mainly resulting from organic growth. Although there were significant investments into production capacities, their full effects can only be expected in the year 2003. Thus in the second half of the year a new brand of spring water - Jana - was introduced to the market, produced at a completely new plant built within a record time of 6 months and equipped with state-of-the-art technology. The total value of the greenfield investment amounts to HRK 200m. Realizing its already proven strategy of continuous development of new high-quality brands, supporting it with a strong own distribution and sales network and investing into the market, the Food group of Agrokor not only succeeded in keeping its high market shares, but was able to even increase them in certain categories such as edible oil, frozen fish and juices. In spite of the necessary significant investments into the market due to the concentration of retail, the Food group managed to generate a remarkable year-on-year growth of operating profits of 5.2%. The strongest contribution to the total growth of the Group's revenues came from the record 58% growth of the Strategic Business Group Retail, holding with its total revenues of HRK 4bn a share of 22% on the food retail market. Such growth partly results from the final achievement of Konzum's strategic goal to cover with its retail network the whole territory of Croatia, but to an even higher extent it is the result of a years-long restructuring of the existing network and real organic growth. In the year 2002 the network was extended to the regions of Dalmatia and Slavonia, the most significant investment in the latter being the acquisition of the Alastor d.o.o. retail chain.
The plans for the year 2003 are even more ambitious. Expected total revenues amount to HRK 8.3bn, which would be an increase of 28.4% compared to the year 2002, whereby Agrokor would definitely take over the leading position in the Croatian economy. In the year 2003 Agrokor shall continue to be focused on the growth of its core production activities and regional expansion and in retail on the increase of its market share to 24%.