Financial Report on Croatia's Agrokor Reveals Huge Losses

The revised financial report for the troubled Croatian retail, food and agriculture giant Agrokor, issued on Thursday, showed that the former management, led by company's owner and founder Ivica Todoric, did not show the company's full losses in its financial accounts.

State extraordinary manager Ante Ramljak - who has been running the company since April, when Todoric handed it over to state control - presented the revised financial report for 2015 and 2016 which had been put together by the PricewaterhouseCoopers audit agency.

The report only included Agrokor's major subsidiaries in the retail, wholesale, agriculture and food industries - Konzum, Tisak, Belje, PiK Vinkovci, Vupik, Ledo, Jamnica, Zvijezda and PiK Vrbovec.

The full report, including mother company Agrokor d.d., will be issued next week.

The revised report for the subsidiaries in 2015 showed 250 million euros' more losses than Todoric's management showed in its financial records.

Todoric's management had no opportunity to present financial records for 2016.

The state management's figures showed that the subsidiary companies finished 2016 with 442 million euros in losses.

The former management also inflated the capital worth of the subsidiary companies in 2015 by some 1.2 billion euros.

According to Thursday's report, the subsidiary companies are worth 1.8 billion euros less than they were before 2015.

"I will not say that any [legal] irregularities [in the previous management's financial records] occurred. I won't speak about this until we have the figures for Agrokor [d.d.]. Accounting irregularities occurred," Ramljak answered when asked if there was criminal wrongdoing involved.

"DORH [Croatian state attorney office] investigators are...