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Mészáros-controlled Konzum doubles assets in first half

Telco

Due to a capital increase announced last December, net assets of Konzum, the investment company controlled by Lőrinc Mészáros, surpassed the HUF 58 billion mark by the end of June, while total assets have doubled to more than HUF 132 bln, according to a press release sent to the Budapest Business Journal.

Lőrinc Mészáros (center), pictured earlier with close ally Prime Minister Viktor Orbán (right)

Konzum published its financial report for the first half of 2018 on the website of the Budapest Stock Exchange, where it is listed in the Equities Prime category.

Konzumʼs net assets stood at a mere HUF 600 million at the end of December 2016, so that the current figure represents a more than 9,700% increase in less than two years.

"Our medium-term strategic goal is to become a significant actor not only in Hungary, but in the whole CEE region. We believe that everything is given at Konzum Nyrt.: the high-quality management, the capital-strong financial position, and the economic ties," the report says.

The groupʼs long-term liabilities increased to HUF 38.2 bln, with short-term liabilities increasing to HUF 35.9 bln.

The companyʼs H1 net income amounted to HUF 2 bln, 13% lower than in the corresponding period of last year.

The press release highlighted that the Konzum group aims at growth in four main investment segments: tourism, real estate, capital and insurance, and holding. Konzumʼs tourism segment, which includes Hunguest Hotels and Balatontourist, outperformed the companyʼs expectations, with a result of HUF 1.453 bln after taxes.

Appeninn Holding, in charge of the groupʼs real estate investments, posted a net result of HUF 227 mln. Last month, the BDPST Group, owned by Prime Minister Viktor Orbánʼs son-in-law István Tiborcz, acquired a more than 20% stake in Appeninn Holding.

This spring, Mészáros came in second just behind OTP Bank Chairman-CEO Sándor Csányi on the list of the wealthiest Hungarians, with assets of HUF 280 bln. Only last October, the former gas fitter and neighbor of the prime minister still placed only eighth, with personal wealth of HUF 105.7 bln, according to Forbes.

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