November the 6th, 2021 - The Croatian Orbico Group, which is otherwise Europe's largest distributor of consumer goods with more than 8,000 employees, grew by 120 million euros during the first year of the coronavirus pandemic, an increase in revenue compared to pre-pandemic 2019.

As Poslovni Dnevnik/Suzana Varosanec writes, the owner of the Croatian Orbica Group, Branko Roglic, confirmed this recently, adding that this record achievement is simultaneously accompanied by integrative processes that have affected the entire system this year.

In all 20 countries in which Orbico operates, the integration of the group's components has been carried out, so that the business is run by over 20 companies on the principle of one company in each country, instead of the 47 that previously operated within Orbico.

Although the structure of sales is changing with the movements of the coronavirus pandemic, with e-commerce reigning strong and standing at around 10 percent for Orbico, trade isn't slowing down either. The growing trend of demand for all types of goods is met by the transformation of business through the processes of digitalisation and robotisation, including investments in logistics.

Over the past five or six years, the Croatian Orbico Group has practically doubled its revenue, and today, as Roglic himself points out, they're the second largest Croatian company (after Fortenova), as well as in terms of total revenues, as in 2020 they even exceeded INA by 4 billion kuna.

They ended the first pandemic year at 18.2 billion kuna (about 2.5 billion euros) in revenue, with the growth trend, which normally ranges from 5 to 10 percent per year, continuing. According to the business plan for this year, the level of total revenues is set at a record three billion euros, and Roglic says that the realisation so far confirms that the Orbico Group will fulfill their target with no issue.

"We're growing the most in the market of Romania, where the revenue is around 750 million euros, and Poland, Hungary, Bulgaria and of course here in Croatia. But Orbico's recipe for success in all markets is the same - it's a move away from politics and a commitment to engaging in clean business with a focus on employee satisfaction. Politics "feeds" on the surplus value that business people create and thus reduces the possibility of the development of the company, as well as society as a whole,'' explained Roglic, adding that the generator of progress is the surplus value created by companies with their employees, preferably at the lowest cost possible.

Plans for further expansion into new markets include the market of Azerbaijan, and as far as acquisition-based growth is concerned, the plan is to take over a strong European digital e-commerce platform. Obviously, the next target for the Croatian Orbico Group is to strengthen their share of online sales, which has been flourishing during the pandemic, and Roglic has since announced the purchase of a large distribution company that has strong activities on online platforms. This is planned to be done in 2022, which would bring Orbico's share of online traffic to a mark which will exceed 20 percent.

They're also expanding their logistics capacities with constant investments, with a low indebtedness rate (1 percent EBITDA), and this year they have joined new logistics centres in Poland and Bulgaria with investments of around 25 million each kuna, with their warehouses covering areas of around 200,000 m2.

Next week, Roglic will travel to Bulgaria himself to open a new logistics centre near Sofia, with a strategic emphasis placed on the process of the automation and robotisation of the logistics services. A new logistics centre spanning 23,000 m3 has already been opened in Poland this year, which is also automated and robotised entirely.

"When it comes to our new projects, the focus will be placed on cooperation with developers who are building new logistics capacities, while through the lease, we pay for the investment and with the expiration of the contracted lease we can extend or take over the centre,'' explained Roglic.

The Croatian Orbico Group's tender for the construction of a logistics centre that will cover the needs of both Croatia and neighbouring Slovenia is underway in Zagreb, and will emerge according to the aforementioned model. It will be their fifth logistics centre and will be worth about 20 million euros in total.

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November the 6th, 2021 - As the pandemic starts to bite again in Europe as the colder weather sets in and the threat of new measures looms, could the likes of Egypt and Uzbekistan represent new Croatian export opportunities? Some in the know believe so.

As Poslovni Dnevnik/Suzana Varosanec writes, despite the impact of the ongoing global coronavirus pandemic on business throughout 2020 and this year as well, in the first three quarters of 2021, more than 111 million kuna of new business was successfully concluded, confirmed the Institute IGH's business report on the first nine months of this year.

The company, with a healthy core business and strategic guidelines for the coming period, in addition to challenges in the Croatian market where it participates in some of the largest infrastructure projects, is focusing its activities on expanding business outside the borders of the Republic of Croatia, with the goal of sustainable growth and further development.

At this stage of internationalisation, their focus is on announcing strides in new markets across Africa and Central Asia, mostly through the opening of representative offices in Egypt and Uzbekistan, where, they say, new, significant infrastructure projects are expected.

From January to September, the IGH Group generated revenues of close to 140 million kuna, but as they announced, they also recorded close to 170 million kuna in expenses, which resulted in a negative result.

IGH d.d. itself, according to the report, is actively pursuing a policy of increasing liquidity and shortening the period of settling liabilities to suppliers and subcontractors, and collecting its overdue receivables. Their trade receivables increased by more than 5 million kuna when compared to the end of 2020, to 26.5 million kuna at the end of this reporting period.

After the depreciation expense of 14.5 million kuna, the negative effect of interest expenses and exchange rate differences of 4.6 million kuna, IGH's net loss stands at 28.2 million kuna, arising primarily from pre-bankruptcy liabilities and settlements. The impact of this on the group's result in the third quarter of 2021 is visible through a net loss of 51.8 million kuna.

If Central Asian and African nations could see Croatian exports succeed, then it would be a more than excellent opportunity for Croatia and Croatian companies to be recognised on an even more global scale than is currently the case.

For more, check out our business section.

November the 6th, 2021 - The Croatian MealPass app has done exceptionally well here on the domestic market, and with a spring put in their step, they're now eyeing expansion across Croatia's immediate region.

As Poslovni Dnevnik/Ivan Tominac writes, Sasa Jurkovic has spent a very long time indeed working in human resources, and that pushed him to decide to try to offer the market some new benefits, which will further strengthen the relationship between employers and their employees.

Guided by this way of thinking, this year, he launched the Croatian MealPass app - an application that saves money that employees have to typically hand over for meals and lunches, all while not having to use it during their working hours only.

The idea has been evolving for more than one year, and significant amounts have been invested in the form of their own funds. They involved a whole team of experts in the application's realisation, so that the final idea would be ideal for the market and its current needs.

This story is about the benefits that have become the ''modus operandi'' of every employee-oriented employer, and the Croatian MealPass app is a new value precisely in the domain of benefits as one of the important parameters of attracting and retaining talent.

“In order to further motivate and attract new employees, employers began to introduce various benefits that moved away from purely financial benefits. Some of these benefits cost nothing, and some did, but the value significantly outweighed the price of each benefit. It started from offering things like drinks and fruit in the office, to flexible working hours, and today you have hundreds of different options out there on the market. The only question is which of the benefits are more valuable to any of the employees. In any case, the benefits have become an indispensable part of the package for motivating and attracting new employees. Combined with a pleasant working atmosphere and optimal income, the benefits greatly affect the desirability of any given employer,'' stated the president of the HR Centre and entrepreneur Sasa Jurkovic.

As Jurkovic added, employers often tend to think that the same benefit is good for all of their employees and that it will make them happy and motivate them. Unfortunately, this is not the case, so smart organisations adjust the benefits they offer to their employees, that is, they try to get an idea of the wishes of all of their employees in as much as possible. What works best depends on the sociodemographic characteristics of individual organisations.

Companies with younger employees will offer more benefits based on education, sport and recreation, as well as private life, while those with older employees will put emphasis on health insurance, pension savings, etc. However, Jurkovic noted that nutrition is the benefit that suits absolutely everyone.

The Croatian MealPass app is an idea that has existed in other parts of the world for years and is somewhat of a standard in employee benefits, but here in Croatia it is a complete novelty.

Enabling tax-free receipts for food, the ability to work from home and the growing need of people for social contact and moving out of the office, but also from home — were among the main inputs from the market that led to the development of this idea.

Furthermore, many families tend not to cook at home on weekends and the need of employers to provide employees with a benefit that doesn't discriminate against anyone, while also being something everyone wants.

The Croatian MealPass app provides its customers with more affordable food in any restaurant or restaurant within the MealPass network with a 15 percent discount. The user pays for the food they've purchased using the MealPass application, the funds spent are then replenished in the user's MealPass account using a credit or debit card or via net banking.

For the use of the MealPass programme, an annual membership fee of 150 kuna plus VAT needs to be paid. Given that this amount is paid on an annual basis, the Croatian MealPass app is acceptable to the vast majority of users, and represents an extremely favourable benefit to employers if they pay a membership fee for their employees.

“Now imagine going to a family lunch. You'll likely not manage to get much for under 400 kuna in most Croatian restaurants. With MealPass, your lunch will cost 340 kuna. Better yet, imagine a birthday celebration. You'd likely not go below a thousand kuna there. With MealPass, you'll pay 850 kuna. The savings on a monthly and annual level are huge,'' pointed out Jurkovic.

As he explained, they also have big plans that they plan to implement in the next three years. “MealPass has big plans and we expect more than 100,000 app users in the next three years. Given the interest of employers and their employees, I believe that we'll succeed in reaching this goal much earlier. Given the wide network of contacts we have, we've already started talks about expanding into the immediate region,'' concluded Sasa Jurkovic from the Croatian MealPass app.

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November the 6th, 2021 - The Croatian eKupi online retailer has introduced a new and innovative service for its users which is similar to something Croatian post (Hrvatska posta) introduced not so long ago - package machines.

As Poslovni Dnevnik/Sergej Novosel Vuckovic writes, the Croatiane eKupi online retailer has taken a step further in improving its user experience, the very basis of the shopping experience. They are introducing eKupi package machines, following, for example, Hrvatska posta, DPD and GLS, which already have them in operation.

The first eKupi "devices" to which goods purchased over the Internet can be picked up have been placed in front of the eKupi headquarters in Buzin, Zagreb, and in total there will be more than 15 of them across all major cities in the country. Depending on the needs, additional regions will also be strengthened in time.

“When buying something via the Croatian eKupi online retailer, the customer will be able to order an item with free delivery and collection on the eKupi & poKupi package machine or it pick up (at a pick-up point) in their city. Products labelled "immediate delivery" will be available the next business day for pick up after the user receives confirmation by e-mail.

The pick-up at the package machine is easy using the QR code or PIN that the customer receives in the confirmation e-mail that their package is waiting for him them at whatever the location is,'' explained Marija Musicki, eKupi's marketing manager.

The goal of the new option, according to eKupi, is to be even closer to customers and deliver what they want as soon as possible, which, knowing the logistical challenges faced by some in the market, is very necessary.

This is especially the case in the anticipation of the festive season at the end of the year, when consumption picks up its pace, starting from the end of November with the so-called Black Friday, which the Croatian eKupi online retailer has already started preparing for.

"We're preparing in advance for the increasingly intensive sales season, and in addition to the excellent offer at great prices this year, our customers will be able to get their purchased products even faster through our parcel machines and at pick-up locations,'' Musicki pointed out.

As a leading online retailer, their revenue grows every year, and their current expectations are no different. Last year, the 10th year of eKupi's operation, they earned more than 370 million kuna, which was helped by the coronavirus pandemic as more and more people turned to the Internet for their shopping needs.

"We're participating with other stakeholders in the transition of customers from offline to online, the coronavirus pandemic has certainly helped in that and accelerated the process, but this is just the beginning and we have a lot of work ahead of us. That's why we want to build high quality and have the best purchase option, and we're constantly trying to secure a breakthrough. This new service meets the needs of our customers. More than 80 percent of our products are located in our distribution centres and are ready for delivery,'' they concluded from eKupi.

For more, check out our business section.

ZAGREB, 5 Nov 2021- Zagreb will get its first facility for the accommodation and care of wild animal species within the Shelter for Abandoned Animals "Dumovec", and its realisation was made possible under the EU project "Wildlife Rehabilitation Centre -- Modernisation of the Zagreb Zoo Phase III".

The total value of the project amounts to about HRK 22.7 million (€3 million), and of that HRK 6 million (€800,000) is co-financed by the EU. The project is implemented from 1 July 2020 to 30 June 2023.

Taking care of injured, exhausted or confiscated animals of protected species will finally be done at a special facility, a recovery centre that will consists of specialised areas of more than 1,300 square metres.

The ground for will be for taking care of abandoned dogs, and the first floor will be for injured and exhausted wild animals from Zagreb, strictly protected species from the entire Croatia and those seized in cross-border traffic.

"The facility will house a modern quarantine and veterinary clinic, a vehicle adapted for the transport of animals will be purchased, as well as equipment for animal control service and equipment for marking animals that are released in the wild," said project manager Davorka Maljković.

Ida Partl from the Ministry of Economy and Sustainable Development said that the Ministry coordinated the operation of 11 recovery centres in Croatia and that six more project would be financed from the cohesion funds.

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ZAGREB, 5 Nov 2021 - The Croatian Writers Society (HDP) on Friday condemned institutional and non-institutional threats against its member, journalist Boris Dežulović, over a text in which he expressed solidarity with the Vukovar victims.

"The Croatian Writers Society most strongly condemns institutional and non-institutional threats against our renowned, internationally awarded journalist and writer Boris Dežulović, made over his article headlined 'F*ck Vukovar', published on the N1 broadcaster's website," the HDP says in a statement.

It notes that Dežulović was previously awarded for his text about the plight of Vukovar, having received one of the most important journalistic awards in Europe.

"He is directly threatened by reactions by some of the members of parliament, Vukovar Mayor Ivan Penava, the War Veterans Ministry and war veterans' associations, which claim the exclusive right to determine the borders of freedom of expression as well as of coming to terms with painful facts," the statement says.

Dežulović already has problems because of his public work and now he has been targeted by a campaign launched on social networks and by right-wing media outlets as well as state institutions that are putting a stamp of state, regime legitimacy on attempts to put his livelihood at risk, the HDP says.

Following harsh reactions to his article, Dežulović said on Wednesday that if there were Vukovar victims who felt offended, they were not offended by his article but by those who trade in their suffering, and that his article was about trade in the horrible sacrifice of Vukovar in the 1991-95 war.

The Homeland Movement party, led by Vukovar Mayor Ivana Penava, and the Ministry of War Veterans, claimed that with his article Dežulović "tried to degrade all victims of Vukovar and the Homeland War."

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ZAGREB, 5 Nov 2021 - An agreement on a concession to develop and commercially use the Zagreb Deep Sea container terminal in the Port of Rijeka, estimated at HRK 20 billion (€2.7 billion), with the concession fee fixed at €2 million annually for a period of 50 years, was signed in Rijeka on Friday.

The agreement was signed by Rijeka Port Authority head Denis Vukorepa, the director of the international terminal operator APM Terminals, Morten Engelstoft, and Energia Naturalis Grupa Management Board chair Pavao Vujnovac on behalf of the concession holder ENNA Logic of Croatia.

The concession holders undertake to build the necessary infrastructure and fully equip the Zagreb Deep Sea container terminal, including building another 280 metres of pier and its equipment, and they also guarantee container turnover of one million units in the first two years of the terminal's operation.

Phase 1 of the Zagreb Deep Sea terminal, with 400 metres of pier and a sea depth of 20 metres, was completed as part of the Rijeka Gateway project in May 2019. The public opening of bids for a concession to operate the terminal was held in May 2021, and an offer by APM Terminals and ENNA Logic was assessed as valid, after which the Rijeka Port Authority Management Board in June decided to award the concession to operate the terminal to the consortium of the two companies.

Prime Minister Andrej Plenković, who attended today's signing of the agreement, said it successfully wrapped up long-lasting efforts regarding the Rijeka Gateway project.

"The agreement will create conditions for the Rijeka Port to take the role of the leading cargo port in the northern Adriatic, thus becoming the most important point of entry to Central and Southeast Europe," said Plenković.

The terminal means an opportunity for economic development and is important also because of strategic autonomy, Plenković said, adding that the government would continue investing in infrastructure projects, notably those that bring long-term economic benefits.

Sea, Transport and Infrastructure Minister Oleg Butković said the agreement would make the Port of Rijeka the most important intermodal centre in the northern Adriatic.

Once the Zagreb Deep Sea terminal starts operating in 2025, the container turnover in the Port of Rijeka will reach one million units, and by 2028 it will reach 1.5 million units, Butković said, noting that with that, Rijeka would overtake the Slovenian port of Koper.

Construction work on the D-403 road, which is to connect the terminal with the Rijeka ring road, is proceeding well, he said, adding that another important project is the construction of a lowland railway from Rijeka towards Croatia's interior and expressing hope it would be completed in about ten years.

Rijeka Port Authority director Vukorepa, APM Terminals executive director Engelstoft and Energia Naturalis president Vujnovac underlined the importance of the Rijeka Gateway project for the development of Rijeka and Croatia, with Vujnovac noting that along with the lowland railway, the Rijeka Gateway project was the most important national project connecting Rijeka and the country's interior.

It will secure the flow of large quantities of cargo thus enabling economic growth, he said, adding that it would make Rijeka an important spot on port maps.

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ZAGREB, 5 Nov 2021 - Croatian President Zoran Milanović on Friday met with the Chief of the United States National Guard Bureau, General Daniel Hokanson.

"The meeting discussed the cooperation to date between the Croatian Armed Forces and the Minnesota National Guard, which was mutually assessed as very successful," the Office of the President said in a statement.

Support for the further strengthening and development of the current partnership was expressed at the meeting.

According to information on the National Guard website, Croatia and Minnesota have cooperated in the field of humanitarian and civil assistance missions for more than 25 years.

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