In the context of the overall economic disruption caused by the COVID 19 pandemic, Atlantic Grupa’s strategy and operations showed a high level of stability during the first six months of this year. In the first half of 2020, Atlantic Grupa generated 327.9 million euros in sales revenue, which on a comparable basis represents a decrease of only 0.9%, and when the parts of business that were disinvested last year are taken into account, the total decrease is 4.5 percent. Normalized operating profit (EBIT) in this period amounted to 31.6 million euros and was lower by 5.5 percent, while normalized net profit compared to the first six months of last year was lower by 3.7 percent and amounted to 24.2 million euros. This year’s results are further burdened by 4.6 million euros in one-off costs, mostly related to donations and other costs related to preventing the spread of the pandemic.
“The crisis caused by the coronavirus pandemic has significantly changed the business of many companies and has also affected changes in consumer behavior. Thanks to the diversified portfolio of strong brands, Atlantic Grupa proved to be largely resilient to the crisis caused by the pandemic, and we achieved excellent business results in the first half of the year as well. Measures introduced to combat the spread of the pandemic have, as expected, resulted in a decline in sales in the HoReCa channel, and a decline in consumption of products intended for consumption outside the home and the so-called impulse segment, but these negative impacts are largely offset by the extremely good results of the strategic business area (SBA) Delicatessen spreads, pharmacy chain Farmacia and business area Donat Mg. Optimization of business processes, stable financial position and quality strategic management, have enabled us to maintain job security, increase the satisfaction and engagement of our employees in the new conditions of teleworking and challenging field work, as well as to maintain business results with minimal negative consequences, commented Emil Tedeschi, President of the Management Board of Atlantic Grupa. He also pointed out that the company continues with the planned capital investments in production equipment and digitalization of business, in order to increase efficiency and further strengthen our brands.
Argeta and Donat Mg and key EU markets grew the most
The highest growth in sales revenue in the first half of the year was achieved by Delicatessen spreads with a growth of 21.4 percent and Donat Mg with a growth of 2.5 percent. With 66.8 million euros in sales revenue, which is a 20.4 percent share of total revenue, Kafa stands out as the largest single category, and in the first half of the year, mostly due to revenue contraction in the HoReCa channel, it fell by 6.0 percent. Among the markets, the most significant is the growth of the markets of Slovenia, Macedonia and Kosovo, as well as the noticeable growth in key EU markets, especially Austria and Switzerland, due to the growth of sales of the Argeta and Smoki brands. In total sales, own brands make up 64.0 percent, and brands of principals in distribution 26.8 percent. Pharmacy chain Farmacia accounts for 9.2 percent of total revenue.
Focus on further infection prevention and uninterrupted production
Thanks to its stable financial position, while maintaining full employment and salaries, the company was able to get actively involved and help in the fight against coronavirus by donating a total of 3.7 million euros to combat the pandemic in key markets.
In the first half of the year, the General Assembly of Atlantic Grupa was held, at which a decision was made to pay a dividend for 2019 in the amount of 25 croatian kuna per share, ie a total of 11.1 million euros, which was paid to shareholders in July.
Numerous independent market researches have confirmed the success of the company’s overall strategy, so Atlantic Grupa was named the fifth most desirable employer in Croatia by MojPosao, while Cedevita is the most desirable brand in the soft drinks category in Croatia and Slovenia, according to Ipsos, BizLife reports.
