William Malcolm

Penta Investments Profits Plummet 48 Percent

Last year, Penta Investments Group’s profit fell by 48 percent to 3.5 billion crowns. Cumulative revenues of portfolio companies increased by five billion to 181 billion crowns. Dr.Max, betting Fortuna, Penta Real Estate and Primabanka, in particular, contributed to the profit. On the other hand, Dôvera insurance company, the Polish retail network Empik, Slovalco and Aero Vodochody were loss-making. Penta announced this in a press release today.

The total assets of Penta’s portfolio companies increased by six billion to CZK 291 billion, and the group invested 11 billion crowns in the development of its companies and projects despite the pandemic, which was 4.6 billion less year-on-year.

“Last year was a stress test for us after years of exceptional economic results. But Penta has a well-distributed portfolio, everyone has done a great job in individual companies and projects. So we have achieved a solid profit even with significant investments,” said Penta partner Marek Dospiva.

According to him, the international pharmacy network Dr.Max played an important role in all countries where it operates during the pandemic. Its pharmacies provided unrestricted services and had to be able to respond to a drastic change in the demand for protective or disinfectant aids. Although repeated lockdowns reduced pharmacy visits, mainly due to the overall lower volume of prescription drugs, the pharmacy network was able to make a significant contribution to the Penta Group’s profitability. Fortuna Entertainment Group, Penta Real Estate and Primabanka also had a positive effect on the economic result.

Penta Real Estate has completed 1139 housing units (Sky Park, Waltrovka, Terrace projects), another 805 apartments are under construction (Maison Ořechovka, Bory Home). In 2020, Penta Real Estate handed over four office projects. The sale of the Churchill Square project in Prague was the largest transaction on the Czech real estate market in the office segment. At the end of 2020, Penta Real Estate managed assets worth CZK 28.9 billion.

According to the company, the activities of Penta Hospitals Internacional hospitals and medical facilities, which operate in Slovakia, the Czech Republic and Poland, were fundamentally affected by the outbreak of the pandemic. The facilities are part of public health care and provide health care to tens of thousands of patients with covid-19. In Bratislava, the construction of a new generation hospital continues without restriction, which should be completed at the beginning of 2023. The total investment costs for it will reach 240 million euros (approximately 6.2 billion crowns).

At the health insurance company Dôvera Penta, it reduced its value in its portfolio. This is mainly due to the instability of the regulatory environment and also to the compensation of costs to healthcare providers in connection with the pandemic, the company said.

Penta was established in 1994 in Slovakia. Its founders are Marek Dospiva and Jaroslav Haščák. In total, the group is managed by six partners and employs more than 43,000 people. She paid a total of CZK 6.4 billion in income tax and employee contributions.