Penta's net profit rises to CZK 12.1 billion in 2023
The net profit of investment group Penta increased by CZK 500 million to CZK 12.1 billion last year, the second best result since the company's foundation in 1994, and the total assets of the group's portfolio companies grew by CZK 17 billion to nearly CZK 360 billion, the company reported yesterday.
In order to continue its growth, Penta plans to open its first-ever fund for qualified investors, it said. It is currently carrying out preparatory steps and will announce details of the structure of the fund in the second half of this year.
Penta's investments reached a record CZK 21.6 billion in 2023. "Over the long term, we are achieving a return on capital of around 15 percent. Dr. Max is expanding in Italy and other markets. Large-scale land acquisitions are enabling us to turn Prague and Bratislava into modern metropolises. We have opened, without exaggeration, the best hospital in Central Europe," said Marek Dospiva, co-founder of the Penta group.
According to him, the group's profits in 2023 were mostly supported by the Dr. Max pharmacy chain, the Penta Hospitals network, banks Primabanka and Privatbanka, as well as development projects. Fortuna Entertainment Group, which also made a significant contribution, has started the process of evaluating all strategic options to support its further growth and long-term value creation. This may result in the entry of a new strategic partner, Dospiva added.
Penta Real Estate confirmed its position as a leader in commercial development as well as in premium and luxury housing, selling the most flats in its history, despite the significant cooling of the market last year. It acquired a number of new plots of land for future development in the wider centres of Prague and Bratislava. Penta Real Estate's total assets now amount to more than CZK 35 billion.
Primabanka and Privatbanka's results contributed significantly to the group's profitability in 2023. However, the introduction of a special banking tax effective from this year will have a negative impact on the future performance of Slovak banks, according to Dospiva.
On the other hand, Slovak aluminium plant Slovalco had a negative effect on 2023 results. Slovalco has historically been a significant contributor to the group's profitability, but last year it was forced to stop its primary production. According to Penta, high energy prices combined with inaction by the Slovak government, which did not adjust the compensation system for energy-intensive industries, led to a complete halt in aluminium production in Slovakia.
Source: Penta and CTK
