Penta opens up to investors after 30 years since its founding

Penta has reported a net profit of €504 million for the financial year 2023, which is the 2nd best result in the Group´s history (after the record numbers achieved in 2021). The Group's consistent and robust results stem from the strong underlying growth of it’s core portfolio companies.

Penta plans to further support it’s growth plans by opening up the fund for qualified investors for the first time. Preparatory steps are currently underway and aims to be ready to announce details of the fund structure in the second half of this year.

Consistent profitability has allowed the group to continue to significantly invest for future growth into its portfolio companies. Capital Expenditures reached €900 million during 2023. Currently the Group employs more than 40,000 people and paid a total of €680 million in income tax and other social contributions in 2023.

“Over the last 5 years we have been able to invest almost €3 billion in the development of our companies. We see significant additional opportunities for growth especially in Dr.Max, real estate and in healthcare. That is why, 30 years after Penta’s foundation, we have decided to invite other investors to share in this success and help us accelerate our development together with us”, explained Iain Child, Managing Partner of Penta.  

Dr. Max pharmacy chain, Penta Hospitals, banks Primabanka and Privatbanka and Real Estate were the most significant profit contributors in 2023. Fortuna Entertainment Group has launched a process of evaluating strategic options to support further growth of the company and long-term value creation which may include partnering the business with a strategic partner.

The robustness of Penta´s 2023 results is even more significant, taking into consideration the curtailment of production at Slovalco, which has historically been a significant contributor to the Group’s results.  High energy prices combined with the Slovak government’s failure to adapt its compensation scheme for energy intensive industry has led to production being unfortunately completely stopped in Slovakia.

The banks – Primabanka and Privatbanka have both delivered solid results contributing materially to the Group´s profitability 2023. However, the introduction of a special bank tax levy by the government in 2024 will have a negative impact on Slovak banks performance going forward.

Despite the significant market slow down Penta Real Estate sold 258 residential units in 2023 and a further 1,135 units are under construction (Bory Bývanie, Nuselský pivovar, Victoria Palace, Juliska, Pri Mýte, Hranička). Moreover, two flagship projects have been completed and opened to public in 2023 – Masaryčka office building in Prague and Bory Hospital in Bratislava.  During 2023, Penta Real Estate has utilised the market situation to significantly expand its land bank for future development by acquiring 215 000 m2 of new land  and 414 000 m2 of gba in Prague and Bratislava. At the end of 2023 Penta Real Estate reported assests  of more than €1.46 billion, which will generate a strong pipeline of high quality design projects for many years to come.