All ENNA Group Companies Achieved Revenue and Profit Growth in 2023

In 2023, all divisions of ENNA Group, energy, logistics, and food, achieved an increase in revenue and profit, and investments are being carried out as planned, the company stated in its latest press release.

The past year was marked by significant changes. In August, the former flagship and primary revenue holder of the group, PPD, left ENNA Group, and the process of preparing ENNA for its first public offering (IPO) on the capital market began. Since July 2023, Boštjan Napast has been at the helm of ENNA’s management, and the company has initiated a strong investment cycle of nearly one billion euros.

Significantly Strengthened Renewable Energy Segment

ENNA Opskrba achieved an operating revenue of 217.2 million euros and a profit of 12 million euros in 2023, while EBITDA was 15.2 million euros. The number of employees in 2023 increased by 51 percent, and the company ended the year with 59 employees. In 2023, ENNA Opskrba became the second-largest supplier of electricity to business customers in Croatia (after HEP Opskrba). During 2023, approximately 400 GWh of electricity from renewable sources was purchased, representing an increase of as much as 103 percent compared to the previous year.

It is worth noting that ENNA Opskrba was the first market supplier to sell energy origin guarantees through a public auction on CROPEX.

In 2023, the company sold nearly 1,000 solar power plants for households, providing its customers with a complete turnkey service, after-sales support, and a 10-year warranty on installed plants. Furthermore, the renewable energy (RE) segment was significantly strengthened, with eight times more capacity built in the B2B segment compared to 2022.

An intense focus on RE is also planned for 2024.

ENNA Geo invested six million euros in researching geothermal sources in Croatia in 2023.

Geo Power Zagocha, as the holder of the geothermal water exploitation field ‘Slatina 2’, completed all necessary preparatory actions for the start of the drilling campaign during 2023. In the first half of 2024, the issuance of a geothermal water exploitation permit and the signing of the Exploitation Agreement are expected. This represents the final step in the preparatory actions and allows for the start of drilling, which is expected to begin at the end of August. Throughout 2023, Geo Power Babina Greda conducted hydrodynamic measurements in the exploration area ‘Babina Greda 1’. At the end of 2023, the exploitation field ‘Babina Greda 1’ was established, determining the reserves of geothermal water, thus completing the exploration phase of the field.

At the beginning of 2024, Geo Power Babina Greda became the majority owner of Geotermalni Izvori, thus becoming the holder of the geothermal water exploration area ‘Babina Greda 2’. Preparations for the construction of an exploration well will begin in Babina Greda, with the first works expected to start in early 2025.

The business model of ENNA Esco is focused on installing solar power plants on the roofs of businesses. In 2023, solar power plants with a total capacity of 2,594 kWp were installed, producing approximately 881 MWh of electricity annually. Significant growth in the number of installed plants and consequently in electricity production is expected in the coming period, thus making an undeniable contribution to the green energy transition.

The business model of ENNA Solar is focused on the development and construction of solar power plants on land, which act as producers in the electricity market. In 2023, projects with an installed capacity of around 30 MW were developed through associated project companies, of which a 10 MW project was developed to the final phase, which will produce approximately 13,500 MWh annually. In the upcoming period, ENNA Solar will intensively work on increasing electricity production capacities, and in addition to the Republic of Croatia, the development of projects on a broader regional level is also being considered.

Investments in Logistics Continue

The logistics division recorded operating revenues of 43.6 million euros, with a profit of 5.3 million euros and EBITDA of 6.3 million euros.

ENNA Logic and ENNA Transport continued to grow in the area of railway cargo transport in 2023. While the domestic market fell by 10 percent, ENNA’s logistics companies achieved a three percent growth in their business, measured by gross ton-kilometers. The most significant growth was seen in intermodal cargo transport and bulk cargo transport from the Port of Ploče.

In 2023, ENNA Transport Croatia ranked first among private railway operators with 3.3 million tons of transported cargo and 168 permanent employees.

Last year in May, the first transports in Serbia were also launched, where approximately 100 trains were transported with its own capacities by the end of 2023.

Additionally, this year ENNA Transport will receive the necessary permits to become an active railway carrier in Slovenia, and the first ENNA transports in the railway market there are also expected soon.

Investments in the Rijeka Gateway project, a container terminal in Rijeka, which is also the most technologically advanced terminal in this part of Europe, continue. In 2023, 63 million euros were invested in the project, of which ENNA Logic invested 31 million euros. The works are proceeding as planned, and the terminal’s opening is scheduled for mid-2025. With the start of the terminal’s operations, a significant increase in the number of transports from Rijeka is expected.

The Biggest Problems Are Climate Conditions and Workforce

In the ENNA group, the food division consists of ENNA Fruit, which became the owner of Moslavina voće during 2023, and the company Naturala. ENNA Fruit and Naturala achieved revenues of 268.9 million euros, with a profit of 7.6 million euros and EBITDA of 14 million. During 2023, the division doubled the number of employees, ending the year with 666 employees in permanent employment.

The main focus of this division in 2023 was on the purchase and placement of domestic goods and on reviving domestic agricultural production. In Croatia, ENNA Fruit and Naturala products were placed in almost all retail chains.

During 2023, the company, in addition to the domestic market, also focused on expanding into the region, recording a revenue increase of 116 percent abroad. Additionally, ENNA Fruit installed solar panels at all collection centers in Croatia in 2023.

The negative trend in domestic production, increasingly difficult climate conditions, and labor shortages represent the biggest challenges in the operations of this division, the company states, and in 2024, the focus will be on digitalization and automation of processes aimed at increasing efficiency and profitability.

The companies will continue to provide security and stability to primary producers of fruits and vegetables through organized production, guaranteed purchases, and timely payments, while also being a reliable partner to retail chains, ensuring continuity of quantities and defined quality standards in the supply of fresh and processed fruits and vegetables, they add in the statement.

In the future, ENNA Fruit intends to focus on maximizing the advantages of regional presence and becoming a center of information on prices and availability of goods, connecting supply and demand in the region and beyond.