Strong revenue growth of all business segments
25.4.2023.
All business and distribution units are growing, and significant increases in the prices of raw materials, packaging materials, energy sources and logistics and other services have had an expected impact on profitability.
In the first quarter of 2023, Atlantic Grupa recorded sales of EUR 215.6 million, which is a 16.8 percent increase compared to the same period of the previous year. Under the influence of significant price increases in the broad spectrum of business activities, earnings before interest, taxes, depreciation and amortization (EBITDA) decreased by 12.2 percent and amount to EUR 20.9 million, while net profit in the first three months decreased by 20.4 percent and amounts to EUR 9.6 million.
“In the first quarter of 2023, Atlantic Grupa achieved strong sales growth in all business and distribution units and in all significant markets. The prices of raw materials and packaging materials, logistics and other services and energy are still at high levels, which, as we announced, affected profitability, and the drop in profitability was partially mitigated by optimizing internal resources and increasing product selling prices. With the strength of our brands and our people, operational efficiency and investments in digitization, modernization and business sustainability, we are ready for further growth", Emil Tedeschi, CEO of Atlantic Grupa pointed out.
SNACKS, BEVERAGES AND COFFEE LEADERS IN GROWTH
The most significant growth of 34.0 percent was recorded by the Strategic Business Unit (SBU) Snacks, whose leading brands are Smoki and Najlepše želje, under the impact of the range optimization, intensified marketing activities and better price position of the products compared to the competition. It is followed by the SBU Beverages with the leading brand Cedevita and 23.8 percent growth, and the SBU Coffee with Barcaffe and Grand kafa brands and the 14.5 percent growth. Distribution units are led by Serbia with a 24.0 percent growth, and Croatia with a 20.0 percent growth.
In Atlantic Grupa's total sales, principal brands account for 27.1 percent, Farmacia accounts for 9.4 percent, while own brands account for 63.5 percent of sales revenue. With a share of 20.1 percent in total sales, coffee stands out as the largest individual category.
COOPERATION WITH PODRAVKA AND NEW CHAIRMAN OF THE SUPERVISORY BOARD
At the end of March, Atlantic Grupa and the Podravka Group agreed on cooperation in the United States of America and Austria. The two companies introduced a unique practice of mutual export support, which implies that Atlantic's distribution company in Austria will provide support for the placement of Podravka's products on the Austrian market, and at the same time, Podravka will market Atlantic's products on the US market through its company in the USA. The goal of this cooperation is to maximize mutual synergies by strengthening the product placement of both companies and raising the recognizability of their brands, using the developed business network and market positions that Atlantic and Podravka hold in these markets.
Among important corporate events, we should mention the election of former member of the Supervisory Board, Zoran Vučinić, to the position of the Chairman of the Supervisory Board, while the former president Zdenko Adrović continues to participate in the work of this body as a member. Zoran Vučinić is a globally proven business leader with more than three decades of international career in the field of consumer goods, primarily in the global operations of The Coca-Cola Company.