Atlantic’s net profit grew by 18.5 percent, exceeding 55 million kuna

In 2012, Atlantic Grupa achieved total revenue of 5 billion kuna, representing a growth of 4.8 percent compared to 2011.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 14.9 percent to 575.1 million kuna, while net profit after minority interests grew by 18.5 percent, amounting to 55.2 million kuna. All Strategic Business Areas recorded sales revenue growth, with the highest growth noted in Coffee at 8.9 percent, Health and Care at 7.8 percent, and Delicatessen Spreads at 7.6 percent.

-We are extremely satisfied with the results in 2012, in which Atlantic Grupa met the announced expectations by achieving organic revenue growth along with improved profitability. We concluded the period with a successful refinancing project, which confirmed the status of a company that responsibly plans and implements its business strategy and enjoys the trust of international development institutions and the financial community. In 2013, the employees and management of Atlantic Grupa will continue to focus on organic business growth through active brand management, innovation, cost optimization, and risk management to achieve the set business goals,” emphasized Emil Tedeschi, CEO of Atlantic Grupa.

The year began with the introduction of a new organizational structure, which organized Atlantic Grupa’s operations into six Strategic Business Areas (Coffee, Sweet and Savory, Delicatessen Spreads, Beverages, Health and Care, Sports and Active Nutrition), four Strategic Distribution Areas (Croatia, Slovenia/Serbia/Macedonia, HoReCa, and International Markets), and the Russian Market. During the year, the second phase of the integration of Droga Kolinska into the Atlantic Grupa system was successfully implemented, focusing on the consolidation of production capacities within the system and the consolidation of business IT solutions. In the last quarter, Atlantic refinanced existing credit obligations in line with the successful implementation of its strategy and good results, achieving a lower interest rate with an extended maturity. A new loan of 307 million euros was approved by the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC), along with four commercial banks (Raiffeisen Bank, Unicredit Bank, Erste Bank, and Sberbank).

In 2012, new products were launched in all business areas, while existing products were introduced to new markets, and the expansion of the distribution portfolio continued. In the Croatian market, new brands of spring and mineral water (Kala and Kalnička) were launched, while Argeta, with exceptional results in Southeast Europe and beyond, received the highest international food safety certification FSSC 22000. The Sweet and Savory range (Štark) achieved record results, and in Croatia, thanks to the distribution of an expanded assortment, it grew more than twofold. The Multipower Sportsfood product line was completely redesigned in 2012. The quality of Atlantic Grupa’s brands was also confirmed by the latest research from Valicon, which ranked Argeta, Cockta, and Cedevita among the top 10 brands in the region.

The Croatian market is the largest individual market for Atlantic Grupa, accounting for 26.6 percent of total sales, followed by the Serbian market at 24.9 percent, Slovenia at 13.2 percent, Bosnia and Herzegovina at 7.6 percent, other regional markets at 6.4 percent, and key Western European markets at 7.3 percent. The Russian and CIS market, with a share of 5.0 percent in sales revenue, recorded the highest growth of 31.4 percent. Other markets contribute 8.9 percent to revenue.

Atlantic Grupa’s own brands account for 72.0 percent of sales, distribution of principal brand products accounts for 15.9 percent, revenue from the pharmacy chain Farmacia accounts for 6.1 percent, while products that Atlantic Grupa produces as private label brands for large business systems domestically and abroad account for 6.0 percent of sales.