Net profit of Atlantic Group 146.9 million kuna

Atlantic Group achieved a net profit of 146.9 million kuna, a decrease of 31.2 percent compared to the same period last year, and excluding one-off items, the decline is 3.7 percent, according to data from the company’s consolidated report published on Tuesday on the Zagreb Stock Exchange.

Sales revenue amounted to 2.46 billion kuna, a decrease of only 0.9 percent, and when considering the parts of the business divested last year, the total decline amounts to 4.5 percent, Atlantic stated in a press release.

Normalized operating profit (EBIT) is 237.3 million kuna, down 5.5 percent, while normalized net profit compared to the first six months of last year is down 3.7 percent, amounting to 181.7 million kuna. 

This year’s results are additionally burdened by 34.8 million kuna of one-off costs, primarily related to donations and other expenses associated with preventing the spread of the pandemic, Atlantic’s press release emphasizes.

– The crisis caused by the coronavirus pandemic has significantly changed the operations of many companies and has also influenced changes in consumer behavior. Atlantic Group, thanks to a diversified portfolio of strong brands, has proven to be largely resilient to the crisis caused by the pandemic, and we achieved excellent business results in the first half of the year – said CEO Emil Tedeschi commenting on the business results.

The measures introduced to curb the spread of the pandemic have resulted, as expected, in a decline in sales in the HoReCa channel, as well as a decrease in the consumption of products intended for out-of-home consumption and the so-called impulse segment, but these negative impacts have largely been offset by good results from the strategic business area of Delicatessen Spreads, the pharmacy chain Farmacia, and the business area of Donat Mg, he said.

He also noted that optimizing business processes, a stable financial position, and quality strategic management have enabled the retention of job security.

He emphasized that the company continues with planned capital investments in production equipment and business digitization.

The press release states that the highest sales revenue growth in the first half of the year was achieved by Delicatessen Spreads with a growth of 21.4 percent and Donat Mg with a growth of 2.5 percent.

Coffee, with 500.9 million kuna in sales revenue, accounting for 20.4 percent of total revenue, stands out as the largest individual category, and in the first half of the year, primarily due to the contraction of revenue in the HoReCa channel, it recorded a decline of six percent.

Among the markets, the most significant growth was in Slovenia, North Macedonia, and Kosovo, as well as noticeable growth in key EU markets, especially Austria and Switzerland, due to increased sales of the Argeta and Smoki brands.

In total sales, own brands account for 64 percent, while principal brands in distribution account for 26.8 percent. The pharmacy chain Farmacia accounts for 9.2 percent of total revenue.

Atlantic reminds that according to the decision of the General Assembly held on June 18, the payment of a dividend of 25 kuna per share, totaling 83.2 million kuna, was approved. The dividend was paid on July 15. 

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