07/30/2015 CORPORATE

Growth of sales and net profit In the first half of 2015

Atlantic Grupa recorded sales of HRK 2.54 billion, which is a 3.5% growth compared to the first half of 2014. Earnings before interest and taxes (EBIT) amounted to HRK 207.9 million and decreased by 10.0% (mainly due to rise in costs of production materials), while the net profit after minority interests amounted to HRK 144.0 million, indicating a growth of 9.6%.


Among key business developments the extension of the distribution portfolio, further development of own brands that continue to win international awards due to innovation and quality, continued integration of the acquired company Foodland d.o.o. and commissioning of the energy bars production plant in Nova Gradiška should be pointed out. In the second half of 2015, the focus will be on further growth on the existing markets and internationalisation of operations as well as on the operational and financial risk management, business optimisation and liquidity and financial liabilities management.

By the completion of the largest investment cycle in the history of Atlantic Grupa’s business operations, in which company invested HRK 100 million, the consolidation of Atlantic Grupa’s production capacities continues, bringing the production in this segment of sport and functional food from contractual external producers into the own plant. During the first half of 2015 the focus was on an intensive integration of Foodland d.o.o. into Atlantic Grupa, creating the precondition for easier management and activation of the planned synergy effects within the Group.


The growth of Atlantic Grupa's sales in the first half of 2015 was mainly propelled by the Strategic Business Unit Savoury Spreads with a growth of 6.2%, the Strategic Business Unit Snacks with a growth of 4.8%, the Strategic Business Unit Beverages with a growth of 2.3%, the Strategic Distribution Unit Croatia with a growth of 6.3% and the Strategic Distribution Unit Serbia with a growth of 5.7%. Coffee with 19.3% share in total sales stands out as the largest single category, having recorded sales revenue in the amount of HRK 489.0 million.

Considered by individual markets, the greatest growth of 7,3% was recorded in Serbia, the second largest market with the 22.8% share in total sales. Croatia, which has the highest portion in total sales, i.e. 26.0%, recorded a growth of 6.6%, while Bosnia and Hercegovina with the share of 7.3% in total sales recorded a growth of 6.1%.

Atlantic Grupa's own brands accounted for 65.3% of total sales, distribution of principal brands 18.5%, pharmacy chain Farmacia 6.5%, while products that Atlantic Grupa produces as private labels for large business systems in Croatia and abroad accounted for 9.7% of total sales.