10/28/2021 CORPORATE

Significant increase in revenue and profitability in the first nine months


With a 9.3 percent growth compared to 2020, an organic growth of more than 10 percent compared to the pre-pandemic record year 2019 stands out

Zagreb, 28 October 2021 In the first nine months of 2021, Atlantic Grupa recorded sales of HRK 4.25 billion, which is a 9.3 percent increase compared to the same period of the previous year, and as much as a 10.1 percent increase compared to the pre-pandemic 2019, when Atlantic had record results. Earnings before interest, taxes, depreciation and amortization (EBITDA) amount to HRK 667.8 million, which is, excluding one-off items, 6.2 percent more than in the first nine months last year. The company recorded net profit of HRK 399.8 million, which is a 13.9 percent increase, excluding one-off items.

“Atlantic Grupa continues to record significant growth in revenue and profitability, despite all the challenges we face. With excellent sales results of our own and principal brands, growth is recorded in all business and almost all distribution units, due to a better epidemiological situation in all markets, the easing of measures to prevent the pandemic, and a significantly better tourist season in Croatia compared to the previous year. Despite the uncertainty of the pandemic development and a number of challenges ahead, we continue with the planned investments, including investments in technology in Atlantic Štark, new forms of packaging and redesign of Cedevita and the new Argeta factory near Varaždin. We are pleased that our strategy so far has shown stability, and we continue to monitor the development of the epidemiological situation and the impact of new market circumstances, so that we can adequately react.”, Emil Tedeschi, CEO of Atlantic Grupa said.

Donat, Cedevita and Argeta leaders in growth

The best result among business units was recorded by the business unit Donat, with a 15.2 percent growth, and strategic business units Beverages, whose leading brand is Cedevita, with a 10.7 percent growth, and Savoury spreads with the dominant Argeta and an 8.4 percent growth. Coffee, as individually the largest category with a 20.4 percent share in total revenues and leading brands Barcaffe and Grand kafa, grew 8.2 percent. Markets are led by Croatia with a 12.6 percent growth, Bosnia and Herzegovina with an 8.3 percent growth and Serbia with an 8.0 percent growth. Own brands participate in total sales with 63.5 percent, principal brands with 27.5 percent, and the pharmacy chain Farmacia holds a 9.0 percent share in sales.

New plants, products and professional awards

First nine months were marked by a successful launching of two new brands – Jimmy Fantastic chocolate, and a range of oat-based products Boom Box, which were successfully launched in March and April on the markets of Croatia and Slovenia, with excellent sales results. In the existing product range, there was a great change following the launching of a new, redesigned and more practical packaging of Cedevita and the redesign of Argeta.

With respect to investments, in March Atlantic Grupa started the investment in the construction of a new factory of products under the Argeta brand, in the municipality of Kneginec near Varaždin. The investment’s total value is more than EUR 50 million, and the realisation of all phases of the project should create up to 150 new jobs. In July, Atlantic Grupa and Barry Callebaut, the world’s leading manufacturer of high-quality chocolate and cocoa products, concluded a collaboration agreement that will improve the production of Atlantic’s established portfolio in the chocolate range. Atlantic Štark is the first regional strategic partner of Barry Callebaut and its factory in Novi Sad.

This year, for the fifth time, Atlantic Grupa won the first award for investor relations, awarded by Poslovni dnevnik and the Zagreb Stock Exchange. Also, according to the survey conducted by MojPosao, Atlantic is the fifth most desirable employer in Croatia, while in Slovenia, organized by the MojeDelo portal, it received the title of the Most Reputable Employer in the FMCG industry.