02/23/2010 INVESTORS

Atlantic increased net profit by 24 percent, revenues at 2.2 bil

Atlantic Grupa concluded the year 2009 with outstanding business results, increasing net profit in relation to the previous year by 24 percent to the amount of HRK 97.3 million.

The company realised the total revenue of HRK 2.2 billion, which represents a growth of 10.1 percent in relation to the same period last year while operating profit was increased by 18.9 percent to HRK 153.8 million. The company realised growth in all key profitability indicators and the listed results are in full accordance with the Management Board’s business plans announced at the beginning of 2009.
“We are proud of the fact that Atlantic Grupa managed to realise such double-digit growth of all indicators in the situation where the economy’s realistic decline is almost six percent, personal consumption decrease is around eight percent and personal consumption has decreased due to increased taxes as well as decreased tourist spending. We owe such growth to the fact that in the previous year we have made significant steps forward in production, primarily with Cedevita GO! and also by entering into new partnerships, among which Ferrero, Karolina and Dvoržak pharmacies are more prominent, as well as by expanding our distribution channels” explained Emil Tedeschi, Atlantic Grupa’s President of the Management Board.

 “We expect that in 2010 the macroeconomic environment will be even more challenging for the real sector and that prudent risk management together with further encouragement of innovativeness will be crucial in overcoming the unfavourable economic situation. From the view of Atlantic Grupa, we expect good results in the current year as well because Atlantic’s growth depends primarily on the work and effort of all our employees and maintaining quality cooperation with our partners“, he also commented.

Last year started with the successful launching of Cedevita GO! – an innovative product that revolutionized the way this popular drink is used and made possible to have it on the go, which resulted in significant expansion of the consumer base to active and younger population. The year 2009 was also marked by cooperation with Nestlé in the HoReCa channel, takeover of distribution from a well-known Croatian manufacturer of biscuits and salty snacks Karolina as well as the beginning of distribution of the Ferrero assortment in Slovenia. Atlantic’s pharmacy chain Farmacia grew by 12 new pharmacies by concluding a strategic agreement with the health institution Dvoržak, with which Farmacia confirmed its status as the largest private pharmacy chain in the country. The Sports and Functional Food Division launched a new “endurance” product line intended for recreational athletes and with the successful expansion in Sweden and Norway Multipower has, in the segment of sports food, taken the top of this niche.

In the total sales of the company, the Croatian market participates with 60 percent and international markets with 40 percent. Germany remains the largest foreign market, while the largest sales growth, in addition to the Slovenian market which grew 138 percent, has been realised in Serbia with 32 percent. Own brands participate in sales with 43 percent, the product distribution of brands from international principals 41 percent, Atlantic Farmacia 10 percent, while the products which are manufactured by Atlantic Grupa as private labels for major domestic and foreign business systems hold the remaining 6 percent of sales.