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June 8, 2018 12:00 am | FILED UNDER: uncategorized

Agrofert Sales Slide: Profits Down 38%

By ČTK

Prague, June 8 (CTK) – Last year’s consolidated profit of Agrofert group dropped by 38 percent yr/yr to Kc4.8bn, its sales amounting to Kc155.1bn, against Kc155.3bn in 2016, the group’s spokesman Karel Hanzelka told CTK today.

 

German bakery Lieken’s performance is to blame for the profit drop, and also companies producing fertilisers were not doing well.

 

Conversely, agriculture companies recorded good results.

 

Personnel costs amounted to Kc20.9bn, rising by Kc312m in annual terms, said Hanzelka.

 

Unconsolidated sales totalled Kc223.8bn, going down by Kc2.7bn on the year. EBITDA (earnings before interest, taxes, depreciation and amortisation) declined by an annual rate of 10 percent to Kc13.26bn.

 

The group invested Kc360m in land purchases, farming 118,000 ha of mostly leased land at the end of last year.

 

In Slovakia, it farms an area of 22,000 hectares, buying new land for Kc30m.

 

Via Mafra, a company publishing Lidove noviny or MF Dnes newspapers, the group acquired a majority stake at Ticketportal last year.

 

Chemical company Deza acquired Polish company Petrochemia Blachownia.

 

Slovak agriculture companies Polnosluzby Bebrava and PD Krupa or Czech wood packaging manufacturer Truhlarstvi Straka became part of Agrofert.

 

Agrofert will continue investing in environmental protection, energy sector and raising of production capacities, said Hanzelka.

 

Long-term tangible assets increased by Kc686m to Kc7.86bn.

 

Agrofert is the largest Czech food and agriculture group, the second largest group in the chemical industry, and an important player in forestry and media.

 

The group had some 33,000 employees last year, a similar amount as in 2016, with 22,000 people working in Czech companies.

 

Until last February, Agrofert had been in the hands of the then deputy prime minister and finance minister Andrej Babis. Because of conflict of interest law, Babis transferred his shares to trustee funds.

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