Tedeschi: We are in a strong acquisition mode, but it takes two to tango

Despite strong growth (16.8 percent) in sales revenue in the first quarter of this year, Atlantic Grupa recorded a 20.4 percent lower profit in the first three months of this year compared to the same period last year. However, Atlantic expected this, and moreover, announced that they would experience a greater decline in profitability in the first half of this year, particularly in the first quarter.

In the first half of last year, the impact of rising raw material and packaging material prices was significantly lower for Atlantic than in the rest of the year because the Group had stocked up on large quantities of these products at prices more favorable than the then-current market prices.

The lower profit this year, however, will not affect Atlantic Grupa’s acquisition plans.

– We are in a strong acquisition mode. We are ready not only for acquisition but also for something we can call a ‘transfer acquisition’, but it takes two to tango – said Emil Tedeschi, CEO of Atlantic Grupa, participating in a panel discussion at the Consumer Rules Summit 2023 conference, which was held earlier this week organized by the EBRD and Conference Republic.

The trouble is, Tedeschi explained, that when you identify a good target, it is also a target for other multinationals, which, as he says, ‘have magazines with much more ammunition than Atlantic Grupa’.

Atlantic Grupa had a strong acquisition momentum between 2009 and 2014, but has not had any acquisitions since then, although Tedeschi has often mentioned them as a possibility. It is known that one of his targets was Podravka, but on the condition that the state reduces its ownership stake to below 25 percent, and it is also known that in searching for potential targets, Atlantic does not limit itself to Croatia and neighboring countries, but also looks in Western Europe.

In the meantime, the company, in line with its strategy of divesting non-strategic business operations, has sold eight of its businesses in the last ten years.