Atlantic Grupa acquires ZIP distribucija

Atlantic Grupa has signed an agreement to acquire ZIP distribucija, which is engaged in the sale and distribution of products from prominent brands Schwartau and Corny by Schwartauer Werke GmbH & Co. KgaA, Winsenia and Niki by Wilhelm Reuss GmbH & Co. KG, and Emco, according to a notification to the ZSE.

The acquisition was carried out following the separation of ZIP distribucija from the business system of ZIP trgovina, within which it operated until the acquisition. Immediately after the acquisition, ZIP distribucija will be integrated into the Distribution division of Atlantic Grupa, and the sale of brands from its distribution portfolio will continue as an integral part of this division’s operations. Atlantic Grupa will take over the business, i.e., the distribution of products Schwartau, Corny, Winsenia, Niki, and Emco to existing and new customers on September 15. The annual revenue from the distribution of these brands in the Croatian market for the year 2007 amounts to approximately 25 million kuna. In an exceptionally high-quality overall portfolio, the Corny brand stands out particularly due to its unique production method and product composition.

The latest acquisition further strengthens Atlantic Grupa’s position as the leading Croatian distributor of fast-moving consumer goods and confirms its strategic focus on developing the distribution segment of its business as an important lever in the overall activities of the company. In Croatia, Atlantic Grupa distributes products from the portfolio of reputable international manufacturers, such as Wrigley, Ferrero, Johnson & Johnson, Nestle Purina, Durex, with special efforts invested in developing distribution in specialized channels such as HORECA (Cedevita, TDR’s assortment, Jacobs, Rauch), sports and farm channels, as well as in developing business in the Southeast European region. Today, Atlantic Grupa operates with the same level of distribution service in the markets of Slovenia, Croatia, Serbia, Montenegro, Bosnia and Herzegovina, and Macedonia, where it has established itself as one of the leading distribution companies.

In the first half of 2008, Atlantic Grupa achieved total revenues of 961.6 million kuna, representing a growth of 19 percent compared to the same period last year. Operating profit increased by 54 percent to 59.8 million kuna, while organic growth of operating profit stands at 31 percent. In total sales, the Croatian market accounts for 62 percent, while international markets account for 38 percent. Own brands contribute 49 percent to sales, distribution of products from international brand principals accounts for 33 percent, Atlantic Farmacia for 11 percent, while products that Atlantic Grupa produces as private labels for large business systems domestically and abroad account for 7 percent of sales, according to the company’s statement.