May the 2nd, 2023 - The well known and wildly successful Croatian Atlantic Group (Grupa) headed by Emil Tedeschi has experienced rapid revenue growth. The plan is for that to continue.
As Poslovni Dnevnik writes, during the first quarter of 2023, the Croatian Atlantic Group recorded sales revenue in the enormous amount of 215.6 million euros, which represents a growth of 16.8 percent compared to the same period last year. Under the influence of significant price increases in a wide range of business activities, profit before interest, taxes and depreciation (EBITDA) decreased by 12.2 percent and amounted to 20.9 million euros, while net profit in the first three months of this year decreased by 20.4 percent and amounts to 9.6 million euros.
"In the first quarter of 2023, the Croatian Atlantic Group achieved strong sales growth in all business and distribution areas and across all of the major markets in which it operates. The prices of raw materials and packaging materials, logistics and other services and energy are still at high levels, which, as we announced, affected profitability, and the drop in profitability was partially mitigated by optimising internal resources and increasing product sales prices. With the strength of our brands and our people, operational efficiency and with investments in digitisation, modernisation and business sustainability, we're ready for further growth,'' said the President of the Management Board of the Atlantic Group, Emil Tedeschi.
The largest growth of 34.0 percent was achieved by the Strategic Business Area (SBA) Sweet and Savory, whose leading brands are Smoki and Najlepse zelje (The most beautiful wishes), under the influence of assortment optimisation, increased marketing activities and a better price position of products compared to the competition. This area is followed by SPP Pice (Drinks) with the leading brand being Cedevita and growth standing at 23.8 percent, and SPP Kava (Coffee) with the brands Barcaffe and Grand coffee, and growth of 14.5 percent. Among the distribution areas, neighbouring Serbia leads the way with growth of 24.0 percent and Croatia has experienced growth of 20.0 percent.
When it comes to the Croatian Atlantic Group's total sales, principal brands account for 27.1 percent, Farmacia accounts for 9.4 percent, while its own brands account for 63.5 percent of sales revenue. With a share of 20.1 percent in total sales revenue, coffee stands out as the largest single category of all.
Cooperation with Podravka
Back at the end of March this year, the Croatian Atlantic Group and the well known Podravka Group agreed on cooperation across the pond in the United States of America and much closer to home in nearby Austria. The two large domestic companies introduced a unique practice of mutual export support, which implies that the Atlantic Group's distribution company in Austria will provide support for the placement of Podravka's products on the Austrian market, and at the same time, Podravka will market Atlantic's products on the US market through its company located over in the USA. The goal of this cooperation is to maximise mutual synergies by strengthening the product placement of both companies and raising the recognition of their brands, using their already very well developed business network and the enviable market positions that Atlantic and Podravka have on these markets.
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