In 1Q10, Atlantic Grupa delivered 2.6% higher sales of 504.2 million kuna and net profit of 56.7 million kuna, largely influenced by one-time gain from the sale of Neva’s former production location.
Excluding the one-offs, net profit amounted to 16.8 million kuna, earnings before interest and tax (EBIT) advanced 2.8% to 31 million kuna, whereas earnings before interest, tax and depreciation (EBITDA) increased 7.1% to 43 million kuna. The company delivered growth in all key profitability indicators, in line with the management’s business plans.
“Despite continuously dim macro picture, Atlantic Grupa delivered 1Q10 business results in line with the expectations. Simultaneously, the company retained its focus on innovations in both product and distribution portfolio, cost management and optimisation activities in all business processes with an ultimate aim of continuous profitability margins improvement. In the meantime, the management as well paid considerable attention on prudent debt management, liquidity maintenance and stability of cash flow from operating activities as imperatives for maintaining financial stability. Alongside regular business operations, Atlantic Grupa’s management as well places considerable attention on identifying potential acquisition targets that would secure value-creative internal rate of return.”, explained Emil Tedeschi, CEO of Atlantic Grupa.
In the first quarter of 2010, Atlantic Grupa undertook several business activities including cooperation expansion with its long-term partner Ferrero to start expanding Ferrero’s freddo assortment on the Serbian market from the beginning of this year. The company as well extended cooperation with Rauch and therewith became exclusive distributor of distinguished juices producer in both retail and HoReCa channel. In addition, the company as well commenced with the distribution of impulse assortment of One2play - the leading domestic supplier of toys, multimedia content, games. Atlantic Grupa additionally expanded its pharmacy chain by consolidating two pharmacies on the back of last year’s acquisition of 49% stake in the company Livia d.o.o. from the Iceland-based Pharma Investment, whereas further consolidation process will continue in the rest of the year. Moreover, the sports and functional food assortment as well posted growth, whereby Russia and Italy stand out as the fastest-growing markets.
In the company’s total sales, Croatian market accounted for 55% of sales and foreign markets 45% share. Germany remained the largest foreign market, whereby Slovenia and Serbia delivered the most dynamic growth of 181.9% and 10.5%, apiece. The company’s own brands accounted for 42% of total sales, external brands 39% of total sales, whereby Atlantic Farmacia made up 11% of top-line and private label sales accounted for 8% of total sales.