Fortenova Slashes Debt Since Emerging From Agrokor Restructuring

Konzum shop successful Croatia owned by Fortenova. Credit: Bartosz Dziugiel/Shutterstock

Fortenova, nan Croatian food, drinks and unit group, has slashed its gross indebtedness by much than a 3rd since nan restructuring of what was formerly Agrokor.

Since embarking connected a caller business strategy successful 2019, complete pinch a number of divestitures and under its caller identify, Zagreb-based Fortenova has trim indebtedness to €650m ($757.1m) from arsenic overmuch arsenic €2bn.

The business revealed nan figures arsenic it announced what it said is an “important measurement successful nan further stabilisation and strengthening of its financial position”.

That involves nan refinancing of €500m successful indebtedness pinch Zagrebačka slope and UniCredit Group, which will return effect from 1 October, according to a statement.

Fortenova added that since 2019 it has “systematically been implementing its deleveraging strategy by divesting assets and expanding profitability, whereby it was capable to importantly trim its leverage”.

The group suggested its net-debt-to-EBITDA ratio is “within nan scope that corresponds to finance [grade] in installments rating”.

Agrokor was nan largest user equipment business successful nan Balkans until it was put into state-administration successful 2017 amid immense debts and accusations of fraud by its laminitis Ivica Todoric.

Fabris Peruško was nan caput of nan government-appointed Extraordinary Commission group up to oversee nan recovery process post-Agrokor and he besides past became CEO of Fortenova.

Commenting connected nan refinancing, Peruško said: “Following nan alteration successful ownership and nan exit of sanctioned shareholders from our structure, we were capable to afloat dedicate our attraction to nan business, to restructuring nan operational and existent property portfolio and to implementing our imagination of nan group’s future.

“I would for illustration to convey Zagrebačka banka and UniCredit Group for nan spot placed successful america and look guardant to our further collaboration.”

Fortenova now operates 29 accumulation plants supplying nutrient and portion products chiefly to Croatia, Slovenia, Serbia, and Bosnia & Herzegovina, according to its website.

In food, nan institution owns nan Zvijezda edible oils, sauces and deli brands, on pinch nan Pik Vrbovec statement of caller and processed meats. It is besides coming successful spreads pinch Dijamant.

Roto forms an offering of soft and alcoholic drinks, on pinch nan Sarajevski Kiseljak marque of mineral waters.

Fortenova besides owns and operates unit chains pinch nan likes of Mercator, Konzum and Tisak.

Earlier this year, Croatian alcoholic drinks group Badel 1862 struck a deal to get section wine, food and oliva lipid shaper Agrolaguna, and nan winery Vinarija Novigrad, from Fortenova.

Divestitures besides included a clutch of nutrient and drinks assets sold to chap CPG business Podravka. The woody featured consequence and vegetables processor Pik-Vinkovci and grains wholesaler Felix.

Podravka besides took complete Belje, which produces wines, dairy products and cured meats.

Damir Spudić, Fortenova’s CFO, added successful nan refinancing statement: “Behind america location are galore cardinal operations – from nan divestment of non-core parts of nan group to a number of processes implemented to additionally consolidate and amended nan business done operational restructuring and strengthening nan costs ratio of our companies.

“The consequence are increasing revenues and operating profits successful each our cardinal segments. At nan aforesaid time, we person group a clear strategical model for nan forthcoming improvement period, wherever our attraction will beryllium connected retail, nutrient and beverage accumulation and distribution.”

According to Fortenova’s website, nan group generated gross successful 2023 of €5.9bn and adjusted EBITDA of €251m.

Just Food has asked nan institution for an update connected much caller figures.

Meanwhile, nan website says Fortenova acquired nan section fruit- and vegetable-related businesses Enna Fruit and Naturala this year.