Realizing the increased sales through other retail partners, a decrease in revenues recorded with the biggest buyer was completely compensated.
Thanks to the sales quality improvement, Atlantic Grupa recorded a significant profitability increase in the first quarter of 2017. Earnings before interest, taxes, depreciation and amortization (EBITDA) amount to EUR 14.6 million and are higher by 4.8% compared to the same period of 2016, while net profit after minority interests rose by 15.4% to EUR 7.0 million. The recorded total sales amount to EUR 150.1 million, which compared to the same period of the previous year represents a drop of 2.9%, and it is caused largely by the termination of the cooperation with the leading buyer of private label in the Sports and Functional Food segment. With the exception of this effect, sales recorded an increase of 1.5% in the first quarter.
„In the first quarter of 2017, in a majority of the business segments and on a majority of the markets we realized excellent sales results, with improved profitability and continuation in reducing the indebtedness. If we excluded the effect of the controlled decrease in the business operations volume pertaining to the members of Agrokor, the single biggest buyer of Atlantic Grupa, and due to the emerged liquidity problems and insolvency of this concern, the stated growth would even be significantly higher. The initiated restructuring procedures of Agrokor provide hope that in the following months the business operations of the concern will stabilize, which will also bring back the previous volume of our cooperation to the levels prior to the crisis, which would provide for the preconditions for even better results in the periods that follow“, commented Emil Tedeschi, President and CEO of Atlantic Grupa. Realizing the increased sales through other buyers in the first three months, Atlantic Grupa succeeded in compensating in entirety for a decline in revenues caused by the biggest regional retail chain, and all regional markets recorded the same revenues as in the comparable period of the previous year.
The total growth of Atlantic Grupa’s sales in the first quarter was primarily impacted by the growth of SBU Savoury Spreads (9.0%), SBU Pharma and Personal Care (7.2%), SBU Snacks (2.4%), SBU Coffee (1.4%) and SBU Beverages (0.3%) as well as SDU Serbia, which compared to the first three months of 2016 recorded growth of 2.4% and SDU Croatia, with growth of 2.3%. With its EUR 28.8 million in sales and 19.1% share in the Group’s total sales, SBU Coffee stands out as the highest individual category.
As regards the individual markets, the highest growth of 6.3% was recorded on the markets of Russia and other CIS countries (accounting for a 4.6% share of the total sales), and on the market of Bosnia-Herzegovina, which recorded growth of 5.9% (accounting for an 8.2% share of the total sales). Individually the biggest, the Croatian market, with a share of 28.8%, recorded growth of 5.2%, while the second biggest market, the market of Serbia, which holds 22.4% in the total sales, recorded growth of 2.5%. The Group’s own brands account for a 66.3% of the total sales, the distribution of principal brands account for a 21.2%, the pharmacy chain Farmacia accounts for an 8.3%, while the products Atlantic Grupa makes as private labels for large business systems in Croatia and abroad account for a 4.3% of the total sales.