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Ballooning revenues lift Konzum consolidated profits

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Listed holding company Konzumʼs consolidated net profit jumped to HUF 10.3 billion last year, up from a paltry HUF 50 million in 2016, as its balance sheet ballooned, an earnings report published late Wednesday shows. Konzumʼs revenues rose from just HUF 20 mln to HUF 16.8 bln.

The company noted that Hunguest Hotels, Hotel Erkel and Konzum Investment Fund Management have been included in consolidated figures, state news wire MTI reported.

A change in the price of the shares of Opus Global held by Konzum unit Konzum Management added an additional HUF 9.3 bln to total comprehensive income.

Konzum had total assets of HUF 68.0 bln at the end of 2017, up from just HUF 4.0 bln twelve months earlier. Net assets rose from HUF 0.6 bln to HUF 40.8 bln.

The balance sheet shows real estate valued at HUF 34.1 bln, stakes in companies of HUF 12.1 bln, and securities of HUF 17.1 bln. Long-term liabilities reached HUF 15.5 bln.   

"The companyʼs management positively assesses Konzumʼs outlook and expects further marked growth both in Hungary and in the Central and Eastern European region," according to the report.

Konzum is directly and indirectly majority owned by the billionaire businessman and investor Lőrinc Mészáros, a close ally of Prime Minister Viktor Orbán, whose wealth has grown spectacularly since the present government ascended to power in 2010.

In early February, Hungaryʼs Competition Office (GVH) approved the takeover of sole direct control of Konzum Investment Fund Management by Mészáros, and consequently sole indirect control of holding company Opus.

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