2014 was marked by business growth coupled with the largest investment cycle in the company's history.
In 2014, Atlantic Grupa recorded sales of HRK 5,118.4 million, which is a 2.4% growth compared to the last year. Earnings before interest and taxes (EBIT) amounted to HRK 440.7 and it increased by 3.8%, while the net profit after minority interests amounted to HRK 200.0 million, indicating a growth of 2.6%.
„Even though 2014 was characterised by extremely difficult macro and micro economic environment reflected in reduced personal consumption, strong depreciation of the Russian ruble, natural disasters in the region and negative movements in most market categories across the region, Atlantic Grupa recorded sales and profitability in line with the announced expectations in addition to continuous deleveraging. We are proud on achieved results and in 2015 we continue with our focus on further growth and internationalisation of the company's business operations, operational and financial risk management, liquidity and debt management”, said Emil Tedeschi, President of the Management Board.
Business operations of Atlantic Grupa in 2014 were predominantly marked by the successful start of distribution of Unilever brands (Knorr, Hellman's, Axe, Rexona, Brut, Signal, Coccolino, Domestos, Cif and many others) on Croatian and Slovenian markets, as well as by building a new factory for Multipower energy bars in the range of sports and functional foods in the industrial park Nova Gradiška. Considering that all the necessary preconditions were realised, the project team started test production in order to achieve full functionality of the energy bars production after the first quarter of 2015. This also completed the largest investment cycle in the history of Atlantic Grupa's business operations, amounting to the total value of HRK 100 million.
With the aim of further internationalization and strengthening brand assortment, in November 2014 Atlantic Grupa signed the agreement on the acquisition of 100% of the company Foodland d.o.o. with headquarters in Belgrade and production plants in Igros at the base of the Kopaonik mountain range. The most important part of the product range under the brand Bakina Tajna (Granny’s Secret) includes delicacies such as savoury spreads and sauces, sweet spreads as well as natural syrups and juices made from fresh fruits and vegetables.
The growth of Atlantic Grupa's sales in 2014 was mainly propelled by the Strategic Business Unit Savoury Spreads with a growth of 3.1%, the Strategic Distribution Unit International Markets with a growth of 4.8% and and the start of distribution of Unilever product range in the Strategic Distribution Unit Croatia and Distribution Unit Slovenia. Coffee with 20.1% share in total sales stands out as the largest single category, having recorded sales revenue in the amount of HRK 1,026.7 million.
Considered by individual markets, the greatest growth was recorded in Slovenia (growth of 17.4%), which accounts for a total of 15.8% of the total sales. The Croatian market accounted for the highest portion in the total sales standing at 25.1%, and a growth of 6.3%.
Atlantic Grupa's own brands accounted for 67.0% of total sales, distribution of principal brands 18.0%, pharmacy chain Farmacia 6.2%, while products that Atlantic Grupa produces as private labels for large business systems in Croatia and abroad accounted for 8.8% of total sales.