The net loss of the main companies in Croatia’s troubled Agrokor group amounted to HRK3.3bn (€439.7mn) last year, an audit report quoted by Total Croatia News showed on October 5.

Agrokor, Croatia’s largest company and one of the largest employers in the SEE region, is undergoing restructuring after a debt crisis pushed it to the brink of collapse earlier this year. As it became clear that Agrokor would be unable to make upcoming debt repayments, the Croatian government stepped in to appoint emergency management at the group.

The extraordinary administration made public on October 5 some of the findings of the audited financial statements for the key companies in the group for 2015 and 2016. The full report will be made public next week.

According to the report, presented by the government appointed extraordinary commissioner Ante Ramlijak, the net loss of Agrokor’s retail business amounted to HRK2.24bn last year, out of which 95% were from Konzum and Tisak. The net loss of the agriculture division amounted to HRK327mn, of which 80% was made by PIK Vinkovci, while the food division posted a loss of HRK741mn.

“Some of the reports contain significant corrections compared to the previously released financial statements for 2015 and 2016. Without Lex Agrokor, these reports would bring into question the future of the whole group and the company. The bankruptcy procedures would have been opened,” Ramlijak said.

Lex Agrokor, approved by Croatia's parliament in April, is aimed at equal treatment of the food and retail group’s creditors. Among other provisions, it prevents individual creditors from collecting their debt by selling Agrokor assets. The law is applicable to companies of systemic importance, namely those with liabilities of more than HRK7.5bn (€1bn) that employ more than 5,000 people.

The audit report showed that Konzum reported a net loss of HRK1.4bn in 2015, compared to an earlier released profit of HRK235mn.

In addition, Agrokor's companies were worth almost HRK13.4bn less than what had been declared in the books, the report claimed, according to hrt.hr.

However, Agrokor’s appointed manager said that the results of Agrokor’s companies for the first nine months of the year were good, noting that Konzum supermarket chain has shown operating profit and its trade has returned to last year’s level.