Atlantic Grupa doubled sales and normalized operating profitability.
In the first half of 2011, Atlantic Grupa posted 104.8% yoy higher sales of 2,197.1 million kuna. Earnings before interest and taxes (EBIT) excluding one-off items doubled in comparison to the same period last year and amounted to 127.7 million kuna. Earnings before interest, taxes and amortization (EBITDA) excluding one-off items advanced 156.5% yoy to 229.5 million kuna, while normalized net profit before minority interests amounted to 14.5 million kuna. The majority of sales growth came on the back of Droga Kolinska’s consolidation, with additional contribution from the Sports and Functional Food Division that posted the strongest organic sales growth of 19.5%, followed by the Pharma Division with 12.5% sales growth.
During the first half of the year, the integration of Droga Kolinska in Atlantic Grupa’s business model was successfully finalized with a joint distribution infrastructure established on all regional markets, merged logistics processes and developed centralized purchasing system as well as central marketing.
“Following successful execution of key integration activities with special emphasis on distribution and logistics on the regional markets, in 1H11 Atlantic Grupa delivered two times higher sales and normalized operating profitability as compared to the same period last year. The company delivered growth on nearly all important markets, especially Serbia with organic growth of over 9%, as well as Germany and Great Britain with double-digit growth rates. Moving ahead, the focus is on improving and optimizing internal processes, developing techniques for operative and financial risk management as well as active brand management with the primary goal of achieving synergy potentials and meeting existing financial obligations”, highlighted Zoran Stanković, Vice-president for finance at Atlantic Grupa.
In Atlantic Grupa’s total sales, the Croatian market accounted for 28.6%, followed by Serbia with 24.9%, Slovenia with 11.9% and Western Europe with 9%. Own brands, following the consolidation of Droga Kolinska’s brands, accounted for 71.6%, principal brands made up 17%, Farmacia 5.9%, while private label sales accounted for 5.5% of sales.