In the first nine months of 2013, Atlantic Grupa reported sales of HRK 3,725.5 million, which is 2.6% higher compared to the same period last year.
In the first nine months of 2013, Atlantic Grupa reported sales of HRK 3,725.5 million, which is 2.6% higher compared to the same period last year. Earnings before interest and taxes (EBIT) increased by 13% reaching a figure of HRK 375.9 million, while the net profit after minorities amounted to HRK 193.3 million in this period owing to, among other things, considerably decreased interest costs after the successful refinancing last year.
The total growth in sales was mainly propelled by the strategic business units Sports and Functional Food (13.7% growth), whereby the most significant growth was realised on the markets of Germany, Spain and Russia. Also the sale of the product categories of flips, cookies and chocolate (5.4% growth) recorded a considerable growth on the Serbian, Montenegrin and Macedonian markets as well as the unit Pharma and Personal Care (5.2% growth) with growth on the Russian and Croatian markets. Coffee with 20.9 percent share in the total revenue stands out as the biggest single category having recorded sales in the amount of 778 million kuna.
"By successful implementation of the set strategy, in the first nine months of 2013 Atlantic Grupa continued with the organic growth in sales with an improvement in profitability, in line with the announced expectations for 2013. We are especially satisfied that our business model proves to be stable in a difficult economic environment, as confirmed by the achieved results and launching of new investments. In addition, the results achieved in the markets of Russia, the CIS and in key European markets confirm the company’s orientation towards the internationalisation as our strategic focus. At the same time, the company is continually dedicated to risk management, liquidity maintenance and management of its financial liabilities", stresses Emil Tedeschi, the President of the Management Board of Atlantic Grupa.
The first nine months of 2013 were characterised by the implementation of new commercial terms on the Croatian market as well as by further expansion of the production and distribution portfolio. In the third quarter, after signing the preliminary contract, Atlantic Grupa started an investment in the new factory for the production of energy bars from the product range of sports and functional food which is located in the industrial park Nova Gradiška. This project with the total value of HRK 120 million will result in the opening of 50 new jobs in the first year of production. With the planned business growth, 160 new jobs will finally be created. The beginning of the factory construction is planned for April 2014, and the first products from the new lines are expected in the market in the first quarter of 2015.
Considered by individual markets, the greatest growth was recorded in Russia and other CIS countries (25.4%). Consequently, these markets account for 5.6% of the Group sales. Slovenia, as the third biggest market recorded a 7.4% growth. The key European markets (Germany, UK, Italy, Switzerland, Austria, Sweden and Spain) which make out 12.2% of the total sales also delivered growth amounting to 4.2%. The Croatian market accounted for the highest share in the total sales, i.e. 25.4% followed by the Serbian market with 23.6%.
Atlantic Grupa's own brands accounted for 72.4% of the sales, external brands from distribution portfolio accounted for 14.8%, the pharmacy chain Farmacia for 6.1%, while Atlantic Grupa's private label sales targeting big business systems in Croatia and abroad accounted for 6.7% of sales.