Agrokor reports growth loss in retail and wholesale segment in H1 2017 | Progresiv
Agrokor reported a turnover of 971 million euros and a loss of 22 million euros in its retail and wholesale business for the first half of 2017. But due to the unreliability of 2016’s unaudited results, a year-on-year performance comparison with 2017 is not currently available until the release of the revised audited results later in 2017. 
Agrokor’s retail banner, Konzum, reported an inferior performance to the previous year to reach 560 million euros. Agrokor said that Konzum faced out-of-stocks due to terminated supplier relationships that resulted in lower average basket spend and as a result lower turnover. Agrokor’s Kiosk & CTN banner, Tisak, reported 130 million euros at a loss that will likley result in closures of some of its 1,000 plus kiosks. Agrokor’s wholesale segment, Velpro, reported 119 million euros and closed the Velpro BH operation in Sarajevo, thus the Croatian conglomerate exits Bosnia & Herzegovina’s wholesale channel.
Sales revenue, month-on-month, improved for the retail and wholesale business attributed to seasonality that is driven by tourist spend near the summer period. But the retail and wholesale unprofitability tripled from 9 million euros in March to a loss of 31 million euros in June. This is compared to the food and agriculture segments that reported growth in profit to 88 million euros for the same period. Due to the retail and wholesale business’s unprofitability in 2017, Agrokor will focus on further restructure of the segment.
Konzum’s 2017 performance so far has been hard hit when compared to Mercator's single digit slump since the former struggled to maintain a flow of stock with the breakdown in reltionship with its suppliers. Agrokor’s other retail banner, Mercator, has stronger loyalty with its suppliers that limited stock shortages and clear communication strategy limited loss in footfall and average basket spend, and as a result better half-year results in 2017, relative to Konzum. (www.igd.com)
