Adris Group Achieves Growth in All Businesses

Adris Group, according to unaudited consolidated reports for the fourth quarter of 2022, achieved total revenue of 6.5 billion kuna, which is 14 percent higher compared to the previous year. Revenue from the sale of goods and services amounted to 6.1 billion kuna, which is 16 percent higher than the revenue achieved in 2021.

Consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) amount to 1.26 billion kuna, representing a growth of 19 percent. Net profit in 2022 amounts to 550 million kuna, which is 37 percent higher than the net profit achieved in the previous year, and is nine percent higher than the net profit achieved in 2019. Net profit after minority interests amounts to 419 million kuna, which is 41 percent higher compared to the previous year.

The tourism segment of the Group achieved growth, while the Istrian segment reached results from 2019. In 2022, the tourism segment of the Group achieved sales of 1.92 million units, which is 30 percent higher compared to the previous year, achieving 97 percent of the results from the record year of 2019. The Istrian segment achieved five percent higher sales than in 2019, Zagreb hotels 69 percent, and the Dubrovnik segment 77 percent of sold units.

Luxury Segment

In the Istrian segment, the luxury segment performed best, achieving 15 percent more sold units compared to 2019. The tourism segment generated revenues from the sale of goods and services amounting to 1.95 billion kuna, which is 43 percent higher than last year, and 11 percent higher than the record year of 2019. EBITDA amounted to 617 million kuna, which is 23 percent higher than last year and constitutes 97 percent of the record achievement from 2019. EBIT amounted to 286 million kuna, and net profit 303 million kuna.

The transformation program continued in the tourism segment of the Group.

There is a particular emphasis on enhancing customer experience, revenue management using advanced analytics, and further development of direct sales channels. Significant progress has been made in branding and standardizing the restaurant offerings, primarily in camps and resorts. Transformation initiatives include the digitization of key processes within the company.

Investments in the tourism segment of the Group in 2022 amounted to 445 million kuna, with the largest portion related to the reconstruction and repositioning of the Zagreb hotel Panorama, thereby strengthening Adris’s position in the urban hotel segment. More than 100 million kuna was also invested in improving the quality of camps, primarily common facilities, and preparations continued for two strategic tourism projects – the Zagreb hotel Westin and the Split hotel Marjan. CO continues the digitization of operations and strong expansion in the polyclinic segment. The Croatian insurance market grew by seven percent in 2022, with Croatia osiguranje solidifying its leading position with a market share of 25.6 percent. The market share in non-life insurance amounted to 30.5 percent, which is an increase of nearly one percentage point compared to the previous year.

Insurance Market

The total gross written premium of Croatia osiguranje in Croatia amounted to three billion kuna, representing a growth of 6.5 percent. The consolidated gross written premium, including regional branches, amounts to 3.72 billion kuna, which is eight percent higher than the previous year. The combined ratio from the regular operations of the CO group is 93.9 and is one percentage point higher than the achievement in 2021, primarily due to investments in sales activities. In 2022, Croatia osiguranje achieved a consolidated net profit of 378 million kuna, which is a growth of four percent.

Croatia osiguranje continues to invest in private healthcare, with the investment value amounting to approximately 150 million kuna. In 2022, Croatia Poliklinike, compared to the previous year, achieved a 48 percent increase in revenue from core activities. Throughout 2022, extensive adjustments were made to regulatory changes regarding the introduction of the euro as the official currency and new accounting standards for insurance companies (IFRS 17 and IFRS 9) that came into effect at the beginning of 2023.

Cromaris Achieved an Eight Percent Growth

Cromaris achieved sales of 13,444 tons of fresh fish equivalent in 2022, which is eight percent more than in the previous year. In export markets, a volume growth of 10 percent was achieved, primarily due to strong growth in the markets of Italy and Spain. Cromaris continues to achieve a high share of sales in foreign markets – 88 percent of volume sales and equally that much in revenue from sales. In the portfolio of differentiated products, which accounted for 34 percent of revenue in 2022, the highest growth was achieved by fresh fillets and the newly farmed species – dentex. Along with volume growth, there was also an increase in prices, averaging nine percent.

Cromaris’s sales revenue amounts to 721 million kuna, which is an 18 percent growth, and earnings before interest, taxes, and depreciation (EBITDA) is 83 million kuna, representing a growth of 24 percent. Net profit amounts to 18 million kuna, which is 39 percent higher than last year’s. In 2021, a program of transformational initiatives focusing on profitability was prepared and started, and continued in the past 2022. The multi-year cycle of the business excellence program focuses on two key areas – market operations and operations. In December 2022, a new photovoltaic power plant began operations at Cromaris, enabling the direct conversion of solar energy into electricity, located on the roof of the hatchery facility in Nin. With a capacity of 700kW, it meets 20 percent of the hatchery’s electricity needs. The investment is worth nearly five million kuna and confirms Cromaris as a leader in sustainable business.

CO continues the digitization of operations and strong expansion in the polyclinic segment

The Croatian insurance market grew by seven percent in 2022, with Croatia osiguranje solidifying its leading position with a market share of 25.6 percent. The market share in non-life insurance amounted to 30.5 percent, which is an increase of nearly one percentage point compared to the previous year. The total gross written premium of Croatia osiguranje in Croatia amounted to three billion kuna, representing a growth of 6.5 percent. The consolidated gross written premium, including regional branches, amounts to 3.72 billion kuna, which is eight percent higher than the previous year. The combined ratio from the regular operations of the CO group is 93.9 and is one percentage point higher than the achievement in 2021, primarily due to investments in sales activities. In 2022, Croatia osiguranje achieved a consolidated net profit of 378 million kuna, which is a growth of four percent. In the segment of digital business development in 2022, CO continued with an investment worth 100 million kuna.

The premium generated from total digital business in 2022 grew by 68 percent, while the number of Croatia osiguranje clients using the Moja Croatia mobile application increased by 75 percent. Croatia’s digital brand Laqo achieved an 84 percent growth in 2022, and the safe driving program Laqo Prevent is actively used by 37 percent of mobile application users. In line with the Group’s sustainability policies, an advanced functionality for tracking CO2 emissions in traffic was introduced, allowing drivers to monitor and positively influence their carbon footprint in the environment.