Adris Group Profit Falls by 71.2 Percent

Adris Group achieved a post-tax profit of 38.4 million kuna in the first six months of this year, a decrease of 71.2 percent compared to the same period last year, according to data from the company’s consolidated financial report published on the Zagreb Stock Exchange.

Total revenues of Adris Group amounted to 1.37 billion kuna, a decline of 3.6 percent. The majority of revenues come from sales, which decreased by 3.8 percent to 1.18 billion kuna.

In its statement on the six-month results, Adris Group particularly emphasizes that half of its revenues from the sale of goods and services are generated from exports, with nearly 60 percent in the highly demanding EU market.

Adris reports that earnings before tax, interest, and depreciation amounted to 214 million kuna, which is 7.7 percent lower than last year.

The group’s operating profit is 24 million kuna, and profit before tax is 108 million kuna.

Adris notes that in 2012, there was a change in depreciation rates in the tobacco segment of the group, in accordance with the current assessment of the economic lifespan of assets, which resulted in an increase in depreciation in 2013.

Compared to the same period last year, TDR recorded a 12.9 percent decrease in sales, with an average consumption decline in regional markets of about ten percent.

Furthermore, as highlighted in the statement, there is a strong shift in demand towards lower price segments, and there is also a strong trend of growth in cut tobacco.

With Croatia’s entry into the EU, significantly higher tariffs on cigarette exports to CEFTA countries have been introduced, which will result in an annual increase in business costs of about ten million euros, emphasize Adris.

In the tourism segment of Adris Group’s business, there were three percent fewer overnight stays than in the first half of 2012, along with a six percent increase in the achieved average price.

Current bookings confirm the maintenance of overnight stays at last year’s level. In the first part of the year, a series of investments were completed that improve quality and reposition products into a higher price segment, with investments worth over 240 million kuna.

Despite the structural problems of Croatian tourism, the tourism segment of the group continues to achieve results that justify past investments and future expenditures, emphasize Adris.

They also highlight that Cromaris achieved a 40 percent increase in sales in the first half of the year compared to the first six months of last year, with exports rising by 70 percent, primarily to the Italian market, which is also the largest such market in Europe.