Atlantic achieves growth of sales and profit – Group weathers Agrokor crisis

Atlantic Grupa achieved a growth in sales in the majority of markets it operates in, as well as a growth of profit in nearly all fields, in the first half of 2017.

As the group reports, sales revenues of EUR 336.4 million were realized in the first half of 2017, a growth of 2% compared to the first half of 2016.

EBITDA amounts to EUR 37.8 million and is larger by 8.4%, whereas the net profit after minority interest rose by 15.4% to EUR 20.7 million. Despite a reduction in the market share of retail chains within Agrokor as the biggest customer, Atlantic realized an overall growth of sales in the first half of the year by expanding the cooperation with other buyers, the press release says.

The first six months of 2017 were marked by the sale of sports food production for third persons and focusing on developing brand operations in this segment.

The factories in Bleckede, Germany, and Nova Gradiska, Croatia, were taken over by the strategic partner, Belgium's Aminolabs. Atlantic has kept a minority share in the facility in Nova Gradiska and continues to produce sports food in both factories in cooperation with the strategic partner in line with the agreement, whereas it is to make direct investments primarily in product development, marketing and the sale of Multipower brand, the press release reminds.

The biggest contribution to the growth of sales revenues of Atlantic Grupa in the first half of 2017 was provided in the strategic segments: “delicatessen spreads”, growth of 6.8%, “drinks”, 5.8% and “sweet and savory”, 4.2%, as well as the strategic distribution area of Croatia, which grew by 5.8%, and the strategic distribution area of Serbia, which grew by 2.1%.

The biggest individual category in total sales revenues is coffee, with a share of 20.1%, amounting to EUR 67.6 million. The group's own brands comprise 68% of the sales, the distribution of the products of principal brands makes up 20.4%, the pharmaceutical chain Farmacija contributes with 7.6%, whereas the products made by Atlantic as private brands for big business systems in the country and abroad remain at 4%, the press release says.

– We are extremely pleased with the results, which once again prove the stability of operations and justify the strategy which relies on investing in our own brands and strong distribution, as well as successful risk management in all fields. Our strategic partnership with the leading European producer of sports and health food for third persons concludes the restructuring of the Sports and Active Nutrition segment through refocusing on the development of brand operations. We have also successfully weathered the difficulties our biggest client is facing and we continue developing the distribution, which is constantly growing, regarding both our own and the principal brands – said Emil Tedeschi, chairman of the management of Atlantic Grupa.

Atlantic group Zagreb

Fortenova grupa d.d.

Atlantic Grupa

Atlantic Group

Agrokor

Atlantic revenues

Atlantic profit

Atlantic Grupa operations 2017

delicatessen spreads

food supplements

sports nutrition

sports food

health food

active nutrition

private brands

Multipower

Champ

Multaben