AGROFERT Group´s consolidated profit after tax amounted to nearly 5 billion crowns in 2017

8. 6. 2018

The AGROFERT Group´s consolidated revenues from the sale of goods, products and services amounted in 2017 to CZK 155.1 billion (in 2016: CZK 155.3 billion). The Group´s unconsolidated revenues totalled CZK 223.8 billion (in 2016: CZK 226.5 billion). Compared to the previous year, the volume of the Group´s consolidated revenues decreased by CZK 200 million.

The AGROFERT Group´s consolidated profit amounted to CZK 4,799 million in 2017, compared to the previous year´s CZK 7,786 million. EBITDA fell to CZK 13,255 million from CZK 14,717 million recorded in 2016. Profit before taxes totalled CZK 6,356 million and the amount of income tax is CZK 1,557 million. The key factor in this decrease was the poorer performance of the German bakery group Lieken which had a significant impact on the year-to-year comparison. Also some companies in the chemical sector reported worse results, namely those engaged in fertilizer production, because they faced the increase of natural gas prices and the stagnation of the fertiliser prices throughout Europe. In contrast, Group companies operating in the special chemistry segment showed improvement. Generally, companies engaged in agriculture reported positive results. New companies only marginally contributed to the rise in revenues. The Group´s profit was significantly influenced by the personnel costs amounting to CZK 20.9 billion, while the annual increase was CZK 312 million. The net balance sum grew from CZK 133,146 million to CZK 141,334 million, representing an increase of roughly 6.2 %. This is primarily due to mobilising investments and tangible fixed asset growth totalling CZK 7,864 million. As a result of newly included companies, tangible fixed assets increased by CZK 686 million.

Development and replacement investments in tangible fixed assets (excluding assets gained through acquisition of new companies) amounted to a total of CZK 15,800 million. On the liabilities side, current liabilities increased by CZK 4,650 million. Most of this increase is the result of a CZK 4,612 million rise in bank loans to Group companies from CZK 30,846 million to CZK 35,458 million. The increase consisted primarily of long-term bank loans arising from ongoing tangible fixed asset investments.

The AGROFERT most important investment of the year 2017 was the construction of the new large bakery in Germany. Other significant investments in the food sector include the completion of a toast line in the company PENAM and the completion of the fourth production line in the company PROFROST. With regard to the chemical sector, the most important investments include the ongoing construction of a new ammonia production plant in the Slovak company Duslo. Other significant investments are the new fertilizer plants in Lovochemie and investments in order to increase the capacity and efficiency of ammonia and fertilizers production in the German company SKW Piesteritz. The large construction of a plastics mill was launched in Fatra, Synthesia continued to invest in the greening of its power plants and launched the construction of another fluidized bed boiler. The most important investments in the livestock sector included the second phase of  the hatchery construction in the company Výkrm Třebíč and the development of new  stables for  dairy cattle in the company ZEMOS. The AGROFERT companies active in the primary agriculture production invested in the purchase of land in the Czech Republic approximately 360 million crowns. The total land area cultivated by the companies of the AGROFERT Group in the Czech Republic amounted to roughly 118 thousand hectares at the end of the year 2017, whereas the majority of the land is rented. The companies active in the primary agriculture production in the Slovak Republic invested in the purchase of land 30 million crowns and cultivated almost 22 thousand hectares of land. As regards the new acquisitions, the year 2017 was a quieter year. The company MAFRA became the majority shareholder in the TICKETPORTAL group and the chemical company DEZA invested in the purchase of the Polish company Petrochemia Blachownia. Other companies which were newly integrated in the AGROFERT group include the Slovak agriculture companies Poľnoslužby Bebrava and PD Krupá or the domestic producer of wood packaging material Truhlářství Straka. With regard to development, the AGROFERT Group will continue to invest in the ecology and energy sectors and to increase the production capacity in its companies.

In the year 2017 the AGROFERT Group employed almost 33 thousand people, of which more than 22 thousand were employed in the Czech Republic.