Mario Mesaroš: There is a Noticeable Slowdown in the Flow of Goods Across EU Markets, Especially in Germany

RALU Logistika, a company owned by Luka Rajić, has completed the construction of a new warehouse for deep-frozen products in the Dragošička business zone in Rugvica ahead of schedule, which began last May. This concludes its latest investment cycle, worth over fifteen million euros, which increases its frozen storage capacity by 6,500 new pallet spaces, in addition to the existing ten thousand spaces. Furthermore, RALU Logistika has recently become one of only nineteen logistics companies in all of Europe to receive the highest global security standard for transportation from the tobacco industry, meaning it meets the strictest safety standards. This has created conditions for further business growth in the 3PL cold chain services market. This refers to third-party logistics, a service that a company outsources to a supplier, consisting of its logistics operations, warehousing tasks, order preparation, and/or transportation.

In this interview, we discuss this investment, as well as the transport and logistics market both domestically and globally, with the CEO of RALU Logistika Mario Mesaroš. Another reason for the conversation is the thirty-fifth anniversary of the company’s operations, which will be celebrated this year. Despite our insistence, Mesaroš for some reason did not want to disclose last year’s revenues and profits, which we were curious about since he mentioned several times during the conversation that 2023 was the best year in the company’s history.

How did you perform last year?

– RALU Group recorded its best business year in 2023 since its inception, both in terms of revenue and the number of employees, of which we currently employ over six hundred. This year, we plan further growth by expanding the logistics segment, considering the recently completed investment in additional storage capacity, and in the transport segment by investing in a new fleet.

And what about the volume of work?

– We achieved revenue growth by increasing business, and it is important to highlight that RALU Logistika has transformed from a predominantly transport company into the largest independent logistics company in the frozen and chilled regime in the region over the past eight years. We used to generate most of our revenue from transport operations; today, our logistics already accounts for half. With the investment in the construction of an additional 6,500 pallet spaces, we have doubled our deep-freezing capacity, allowing us to provide services to clients that we previously could not due to space constraints. We are also ready to take on new clients.

Who are your clients?

– I can say that we work with the largest Croatian retail chains that use our warehouses as their central warehouses, as well as with the largest Croatian and European food producers and companies from the pharmaceutical industry. Clients have recognized the importance of safe and quality service in the logistics sector.

How many clients do you work with?

– In the logistics segment, our client base consists of fifteen to twenty key clients. Our clients are the largest Croatian retail chains and large domestic and international food producers. In the transport business, we have a base of over two hundred clients, mostly companies from the food and pharmaceutical industries.

The economy in Europe is stagnating. Recently, a sharp decline in industrial production was recorded in the EU. Transport and logistics are always a good indicator of what is happening in the economy. Do you feel this in your business?

– In transport, there is a noticeable slowdown in the flow of goods across EU markets, especially in Germany. Since a significant portion of our revenue comes from Western markets, the impact on our business is evident. Further slowdowns in other EU economies can also be expected, but for now, we cannot assume how long this trend will continue.

And logistics?

– In the logistics part of the business, this trend is not yet felt. Of course, we cannot know whether the crisis will spill over into the Croatian economy with a delay.

Are you planning to acquire any logistics companies, would owner Luka Rajić sell the company, what has most influenced the significant revenue growth of RALU Logistika since 2020, and other topics of the interview can be read in the new issue of the digital and printed edition of Lider.