07/30/2013 CORPORATE

Growth of international markets and Russia

In the first six months of 2013, Atlantic Grupa reported sales revenue amounting to HRK 2,420.7 million, 3.3 percent higher compared to the same period last year. 

In the first six months of 2013, Atlantic Grupa reported sales revenue amounting to HRK 2,420.7 million, 3.3 percent higher compared to the same period last year. The earnings before interest and taxes (EBIT) increased by 5.2 percent as compared to the same period last year reaching a figure of HRK 219.1 million, while the net profit after minority interests recorded HRK 114.5 million owing to the considerably reduced amount of interest expenses after the successful refinancing of loan liabilities.

The growth in sales was mainly propelled by the Strategic Business Units Sports and Functional Food (16.9 percent), whereby the most considerable growth was realised on the markets of Germany and Switzerland, and Pharma and Personal Care (3.6 percent) which reported growth on the Russian market due to the change of distributor thus offsetting the stagnant sale in the first quarter. The Strategic Business Unit Snacks developed at a 3.4 percent rate recording a considerable growth in the categories of flips, biscuits and chocolate on the Serbian and Macedonian markets. Coffee, as the biggest single category, which recorded HRK 506.5 million in sales revenue, improved its results by 1.7 percent compared to the same period last year. In this segment, the Croatian market continued to record a double-digit increase owing to the increase in sale of the brand Barcaffe. 

“In the first half year Atlantic Grupa realised sales revenue growth despite the challenging economic situation in the region and in the wider area. We are extremely satisfied with the continuous organic business growth, and especially with the sales revenue growth realised on the markets of Russia, CIS countries and the key European markets which confirms the successful strengthening of the position of Atlantic Grupa brands on the international markets", commented the Vice President for Finance at Atlantic Grupa, Mr Zoran Stanković. 

The first six months of 2013 were marked by the implementation of new commercial conditions on the Croatian market as well as by boosting the portfolio. Consequently, in the SBU Beverages a new product was launched - Cockta Chinotto, while Argeta - the leader of the SBU Savoury Spreads - entered the Spanish market. The Strategic Business Unit Pharma and Personal Care increased the range of the Dietpharm brand by five additional products and the range of the Neva brand by two new products. The own product range of the Strategic Business Unit Sports and Functional Food was increased on the markets of Germany, Austria and Switzerland. 

Considered by individual markets, the greatest growth was recorded in Russia and the CIS countries (26.8 percent). Consequently, these markets now account for 5.6 percent of the total sales revenue. The second biggest growth was registered in Slovenia (6.9 percent). The key European markets (Germany, UK, Italy, Switzerland, Austria, Sweden and Spain), which make out 12.8 percent of the total sales revenue, also delivered significant growth amounting to 6.7 percent. 
The Croatian market accounted for the highest portion in the total sales revenue with 24.4 percent followed by the Serbian market with 24.0 percent. The third biggest market is the Slovenian market with 12.8 percent, followed by B&H with 7.6 percent and other regional markets with 6.2 percent. 

Atlantic Grupa's own brands accounted for 72.6 percent of the company sales, external brands from distribution portfolio accounted for 14.0 percent, the pharmacy chain Farmacia accounted for 6.3 percent while Atlantic Grupa's private label sales targeting big business systems in Croatia and abroad accounted for 7.1 percent of sales revenue.