May the 4th, 2023 - The Osijek company Saponia's revenues have exceeded a very impressive 27 million euros, and the company's most significant investment yet is now entering into its final phase.

As Poslovni Dnevnik/Mladen Miletic writes, the beginning of the year brought an almost 10 percent increase in revenue to the Osijek company Saponia, which exceeded 27 million euros (27.1) in the first quarter of 2023.

In the financial report published last week for the first three months of this year, the company notes that a strong increase in profitability of 35 percent was created with the achievement of EBIT of 1.2 million euros, as well as a proportional increase in EBT of 32 percent, with the achievement of profit before tax in the amount of 1.2 million euros.

Revenues from sales on the domestic market grew significantly, which, in relation to the same period last year was 18 percent higher and amounted to 15.3 million euros. On foreign markets, which are responsible for 43% of total revenues, that realisation amounted to 11.4 million euros.

Balanced growth

"Despite the increased absorption of input costs, the Osijek Saponia company's operations are continuing to head in the planned direction. Significant growth in terms of business income was achieved in a very difficult cost and operational environment.

The financial progress of business income consequently preserves and improves other key business indicators, and as such the ratio of net debt to EBITDA was maintained at 1.8, and the level of net working capital recorded an increase of 57 percent and amounted to 39.5 million euros. The value created in the first quarter of 2023 confirms that the balanced growth of Saponia has been created," the quarterly financial report states.

However, it has been noted that the business is still primarily characterised by cost pressure through the growth of prices of raw materials and packaging, energy costs and further increases in the gross salary of employees.

"As such, the costs of production materials are 23 percent higher, and the costs of energy and fuel are 55 percent higher compared to the first quarter of last year. The work of our employees was supported by an increase in payments for labour costs of 16 percent, which had an aliquot effect on the increase in the average gross salary for 1,071 employees," they stated.

Energy restoration

In a period in which the importance of energy sustainability and savings is becoming more and more clear, the Osijek Saponia company is beginning to "harvest" the benefits of intensive investments in increasing energy efficiency and the use of renewable energy sources, about which the company said the following:

"Certainly the most important project for the development of the Osijek Saponia company as a modern and environmentally conscious enterprise is energy renovation, which is entering the final phase, and even at first glance you can see the change on the facades of all four buildings, and we expect the end result, i.e. savings, by the end of the year. The workers in the production plants are already seeing the announced positive changes in working conditions, and our goal is to continue this process and a number of new projects have been prepared and are ready for implementation,'' the statement read.

For more, make sure to check out our dedicated business section.

May the 4th, 2023 - The Croatian company Koncar can boast of an enormous 1.2 billion euros in open orders, with the first quarter of 2023 looking very good for them indeed.

As Darko Bicak/Poslovni Dnevnik writes, during the first three months of 2023, the Croatian company Koncar (Koncar Group) achieved very impressive consolidated sales revenues in the amount of 171.5 million euros, which is 54.2 million euros or 46.2% more in comparison to the same period last year. In the total revenue the company earned from sales, the share of exports increased, amounting to 64% in the first quarter alone.

In relation to the comparative period from last year, revenues from the sale of the Croatian company Koncar's products and services in terms of exports increased across all markets in which they operate, and a particularly significant increase in revenues was recorded in the European Union's (EU) single market, where exports increased by 30.8 million euros. Exports to the EU amounted to 79.9 million euros, repesenting 73.2% of the company's total exports.

At the same time, the business segment of electricity transmission and distribution achieved particularly good results, thanks to the high demand for transformers due to the increasing momentum of the green transition. In addition to contracting on the EU market, which  159.9 million euros higher than back during the first quarter of 2022, contracting on all of the other markets on which the company is present has also increased.

Newly contracted deals in the first quarter of 2023 were concluded in the amount of 404.7 million euros and are more than double the amount of contracted deals in the same period last year.

According to Gordan Kolak, the president of the Koncar Management Board, open orders, the backlog, which reached a record amount of 1.2 billion euros and have increased by 233.1 million euros compared to the end of 2022, stand out in particular and represent the basis for growth.

Despite the growth in profits, the energy crisis and ongoing geopolitical turmoil as a result of the Russian invasion of Ukraine had a strong impact on profitability, and EBITDA was reduced by 15.2%, while operating profit was realised in the amount of 10.7 million euros and was lower by 4.3 million euros.

For more, make sure to check out our dedicated business section.

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.

For more, make sure to check out out dedicated business section.

May the 2nd, 2023 - The impressive Croatian company Infinum has entered into the European Bank for Reconstruction and Development's Blue Ribbon programme.

As Poslovni Dnevnik writes, the well known Croatian company Infinum has joined the EBRD's Blue Ribbon programme for small and medium-sized enterprises, where the emphasis will be primarily placed on supporting the ESG component of business, the EBRD reported last week.

As part of the development plans, the Croatian company Infinum intends to put a greater focus on ESG components, including the formalisation of environmental and social policies, as well as the strengthening of corporate governance throughout the group. The Blue Ribbon programme will provide comprehensive advisory support, which this time will also include an ESG component, the press release regarding the joining of this domestic IT company to EBRD pointed out.

ESG (Environmental, Social and Governance) are non-financial indicators that relate to company strategies and policies when it comes to the environment, society and governance, whereby the obligation to report compliance with these principles is increasingly being created.

Infinum is otherwise the fourth Croatian company to join the Blue Ribbon programme, which includes 82 small and medium-sized companies from as many as 28 different countries.

Membership in the programme for high-potential local SMEs typically lasts five years and includes a range of advisory services selected based on their individual business needs, as well as potential funding.

For more on Croatian companies, entrepreneurs and innovation, make sure to check out our dedicated business section.

May the 1st, 2023 - Croatian companies were present exhibiting their fish products at the recently held Seafood Expo Global in Barcelona. The Croatian Chamber of Commerce (HGK) which organised the visit, has stated that it is doing all it can to aid Croatian companies in internationalisation.

As Poslovni Dnevnik writes, just like over the past several years, the Croatian Chamber of Commerce organised the joint presentation of Croatian companies from the fishing sector at the Seafood Expo Global international fair, which was held from April the 25th to the 27th in Barcelona. At the fair, 2,078 exhibitors from 87 countries exhibited on approximately 50,000 m2 of exhibition space.

The following Croatian companies presented their various fishery products at this important fair: Arbacommerce, Conex Trade, Cromaris, Jadran tuna, Mislov, Orada Adriatic, Pelagos Net Farma, PP Orahovica, Sardina and ZMH Horvat. The most important products they presented were white fish, tuna, salted small blue fish, frozen small blue fish, canned food, freshwater fish and various fish-based processed products.

"The fundamental determinants of the Croatian Chamber of Commerce are the strengthening of exports and assistance to Croatian companies in the internationalisation of their business operations. Therefore, I'm particularly pleased that with the help of HGK, ten of our members, who derive a significant part of their income from export sales - 55 to 85 percent to be more precise - exhibited their fishery products at this most important international fair. In the new programme period until 2027, HGK will continue to support the export efforts of our members, and promote the sustainability of Croatian fisheries and the consumption of fish and products from Croatian cultivation and catch through the implementation of the Fish of Croatia Eat what it's worth EU project,'' said HGK president Luka Burilovic.

For PP Orahovica, the largest domestic producer of freshwater fish, this fair was an opportunity to present its products of the Panona Mare brand to business visitors and potential customers.

"We attracted the attention of visitors as the only brand with a ready-to-eat breaded freshwater fish programme. These are products that are adapted to the needs of the modern consumer, simpler to prepare and tastier to consume, and with which we're already present on the domestic market and are preparing for placement on the European and world markets. As one of the most important events in the fishing sector, this fair is an excellent platform for business meetings with target customers in the B2B segment, but also an opportunity to further build the image of our Panona Mare brand,'' said Katica Petkov, the marketing manager of PP Orahovica.

The Mislov company has otherwise been participating in this fair for a number of years now. "We believe that it's the best platform for presenting our products to new customers, but also an opportunity to meet our long-term partners. This fair is important to us because we can learn about the latest trends and innovations in the world of fishing and the opportunity to try to follow them," said Marina Spralja from Mislov.

The very well known Cromaris, as the leading producer of Mediterranean white fish here in Croatia, presented its wide range of products to those present at the Barcelona fair. This year, a special focus was placed on organic fish, so innovations in production were presented. Visitors to the fair were able to taste various delicacies made from Cromaris fish prepared by chef Mladen Krizanovic, and the sushi was especially attractive to those present.

The export of fishery products in 2022 compared to 2021 recorded a growth of 14 percent and amounts to 312.5 million euros, which represents an increase of 38.5 million euros. The surplus last year amounted to 64.7 million euros, and the coverage of imports by exports was 126 percent. In the structure of exports in 2022 by product group, fresh or chilled fish are the most represented, accounting for 51.6 percent of the total export value, fish products and preserves (16.5%) and dried, salted or brined fish and smoked fish (11.1%).

Products from Croatian companies operating within the fisheries sector worth 211.4 million (67.6%) were placed on the market of EU countries last year. Looking at exports individually by country, in 2022, the first export market was Italy with 104 million eutos (33.3%), followed by Japan with 39.7 million euros (12.7%) and Spain with 36.7 million euros (11.7%).

Since way back in 2004, HGK has been sending Croatian companies to the world's largest fish fair, Seafood Expo Global. For a number of years now, the performance of Croatian companies has been financed through the aforementioned EU project which is aimed at promoting fishery products and increasing exports of the Croatian fishing sector.

For more, make sure to check out our dedicated news section.

April the 25th, 2023 - This newly launched platform's Chiriboo Funderbeam campaign hopes to target and successfully break into the markets of neighbouring Slovenia and Serbia.

As Poslovni Dnevnik/Josipa Ban writes, the recently launched Chiriboo platform, the first regional digital tool for the presentation and sale of cars, has so far collected 48 thousand euros of capital through a crowdfunding campaign launched just a few days ago on the Funderbeam platform.

Currently, the largest investor is the company Commondo, Chiriboo's strategic partner, which invested 20 thousand euros. The rest of the investors are anonymous.

The aim is for the initiators of Chiriboo to collect between 100 and 200 thousand euros in the next fourteen days, which is the expected duration of this Chiriboo Funderbeam campaign. The money will then be invested back into the development of the platform and into regional expansion, and the first markets where Chiriboo plans to launch, after Croatia, are those of neighbouring Slovenia and Serbia.

Users and investors

The above was revealed by Marko Stojakovic, who is responsible for investments, finance and partnerships and the development of commercial products at Chiriboo, and is also one of the founders and director of the company Make IT Easy, which developed the MobilityOne software for fleet management.

Behind the Chiriboo project, namely, along with Stojakovic and the rest of the Make IT Easy team, there is a group of experienced experts from various fields. Among them is Juraj Sebalj, a rally driver, who is also one of the best connoisseurs of the automotive market and the general manager of Chiriboo, who plans to invest in a tool that should introduce digitalisation into the still very traditional automotive industry, where customers still prefer to see the vehicle "live" before making a purchase.

Stojakovic stated that with the new Chiriboo Funderbeam campaign, they plan to attract small and medium-sized investors who recognise the potential of the platform. Namely, it is a new platform that is aimed at users, that is, customers for whom it should make buying a car easier and more simple. The money they plan to collect will be enough, according to Stojakovic, for development and operations for the first year, after which they hope for a positive business result. So far, he said, they have invested 300,000 euros in software development alone, and they don't intend to stop there.

"The software and application (app) will be upgraded and we will continue to develop them both for years to come in accordance with the reaction of the market, that is, users and their comments and needs," Stojakovic pointed out.

The funderbeam experience

Currently, Chiriboo offers an overview of the prices, photos, technical data and equipment composition for more than 3000 models available on the Croatian automotive market. The main advantages of the platform's founders are two things - the smart "Search Engine" and the "Comparator". The smart "Search Engine" enables a simple search for models, and the "Comparator" enables their comparison. In addition to that, they have an enviable base of cars ready for quick delivery.

When asked why they decided to launch the Chiriboo Funderbeam campaign, Stojakovic replied that in general they have a good experience with the platform because they have already completed two rounds of crowdfunding on it with Make IT Easy.

For more, check out our business section.

April the 25th, 2023 - The Croatian ReversingLabs company has been going from strength to strength, and it has now entered into a strategic partnership with no less than PwC.

As Poslovni Dnevnik/Josipa Ban writes, the Croatian ReversingLabs company, registered a software company which specialises in detecting and preventing attacks in the software supply chain, has now entered into a strategic partnership with PwC, a British consulting firm.

PwC's consulting services in combination with the Croatian ReversingLabs platform will provide organisations with much better protection against increasingly complex attacks on their software supply chains, according to ReversingLabs, a company that generates most of its revenue, 90 percent of it to be more precise, across the pond over on the American market.

“More than ever, vendors are dependent on software vendors, which creates a need for automation so that the risks arising from these relationships can be assessed quickly and at scale. The need is even greater when it is known that software suppliers rely on open source code, and that is increasingly being targeted by malicious actors," emphasised Mario Vuksan, the CEO of the Croatian ReversingLabs software company.

Penny Flint, a partner at UK PwC, added that this newly developed partnership will significantly help companies discover and understand the many risks that come from software. Benefits will also be found in the fact that customers of the combined service will be able to visualise the components in their software supply chain(s) and the risks they represent for their businesses.

They will be able to automate guarantees and will be given the proper tools and knowledge to protect their supply chains from start to finish. This will reduce the likelihood and effects of malware and tampering attacks throughout the entire software development and use cycle.

For more on Croatian products, companies and entrepreneurs, make sure to check out our dedicated business section.

April the 24th, 2023 - The cult Split Bellevue Hotel now has brand new owners, the Retoi company, which is also from Croatia's second largest city and has close ties to... shoes.

As Poslovni Dnevnik writes, the brand new owner of the well known Split Bellevue Hotel is the company Retoi, which is also from Split, and which offered a massive price of 14,111,111 euros for it. The company is owned by Alex Birkenstock, who also owns the renovated Ambasador Hotel in Split.

Bids were initially opened at the Commercial Court in Split on Friday, and Retoi offered the highest among the six bids received. The company Rico Coca offered 13,100,000 euros, and Ruzarija from Zagreb had a total offer of 13,130,000 euros.

The company Tu doma submitted two identical offers of 9,109,000 euros, Porto Hvar offered 8,008,008 euros, and Mediteran trade offered 7,423,002 euros. Klaus Alex Birkenstock, one of the world's largest shoe manufacturers, otherwise the owner of the huge Birkenstock brand, bought the equipment and furniture of the hotel with the Laurus building, including 23 works of art that decorate its walls, writes Vecernji list.

The Split Bellevue Hotel was sold in the bankruptcy estate of Laurus, and the lowest total price could not be lower than 7,167,031.65 euros. All bidders also had to pay a 2 million euro bond.

This complex is otherwise one of the oldest Croatian hotels in the most prestigious location in the City of Split. It was first mentioned around 1875 under the name Hotel de la Ville. It was run by Spiridone Tocigl, and was known for its famous coffee house and medicinal baths. It has hosted numerous very notable personalities during its time.

Back at the beginning of the 20th century, J.L. Crown became the owner of the cult Split hotel and changed its name to Grand Hotel Bellevue. The first major renovation was carried out in 1933, when the hotel got heating, hot water, a lift and bathrooms next to the rooms, the greatest luxury one could thing of back at that time. Among other people, Agatha Christie, Anatole France, and Orson Welles have all stayed in the Split Bellevue Hotel.

For more, make sure to check out our news section.

April the 20th, 2023 - The Croatian IN2 Group (Grupa) had a very successful year last year, and with growth looking promising and their number of employees on the up, it seems that 2023 will be another good year.

As Poslovni Dnevnik/Tanja Ivancic writes, the Croatian IN2 Group which deals with software ended the year 2022 with total operating revenues in the amount of 33.6 million euros, which marks enviable growth of 23 percent when compared to 2021.

The increase in their overall income was achieved through inorganic growth, more precisely through the acquisitions of the companies MCS Grupa and Libusoft Cicom in the amount of 14 percent, while organic growth in regard to the regular operations of the Croatian IN2 Group stood at 9 percent.

At the same time, the Croatian IN2 Group saw an increase in their total expenses, which was actually slightly more than their increase in income, standing at 24 percent.

The increase in their expenses is conditioned, as the company explained, by ongoing unfavourable global trends, inflationary pressures and the general increase in business costs across the board, the biggest impact of which comes from the increase in the number of IN2 Group employees along with the increase in salary costs.

Due to the acquisitions of MCS Grupa and Libusoft Cicom, the Croatian IN2 Group has significantly increased its number of employees, meaning that today they number 650 in 10 companies spanning five countries.

The diversification of their business operations with more verticals and markets, along with the growth of business in them, made it possible for this domestic company to maintain profitability at the levels from back in 2021, they pointed out in their press release.

"We're very satisfied with the state of our business over the past year. Our strategy for 2023 is the continuation of growth, which we plan to achieve by increasing the volume of our business with new projects, as well as with new acquisitions,'' emphasised Snjezana Stankovic, a member of the IN2 Group Management Board.

For more, make sure to check out our dedicated business section.

April the 18th, 2023 - RC Europe has chosen the Croatian company FACIES to construct a brand new gigantic logistics centre, RC Zone Samobor, worth 75 million euros.

As Poslovni Dnevnik writes, the Czech investor RC Europe has announced the end of its tender for the construction contractor for the RC Zone Samobor logistics park in the wider Bobovica economic zone. It has chosen the Croatian company FACIES, which has its headquarters in Strmec.

Earlier on, they completed the construction of the access road and relocated the main sewage line, as well as the overhead power line - all of which were prerequisites for the start of construction. In addition to that, at the end of last year, they obtained a building permit for this future green investment worth a massive 75 million euros.

"We're successfully continuing with our RC Zone Samobor logistics park project, which will represent a good example of green and sustainable construction within the logistics segment here in the Republic of Croatia. Alongside a local partner, the reputable construction Croatian company FACIES, with its many years of experience working on demanding projects, we're now one step closer to realising this investment, which, with 86,000 m2 of storage space will surely meet the needs of our future tenants,'' said Marko Vitelj, the country manager for Croatia of RC Europe.

This large infrastructure project will also contribute to the quality of life of the local community, not only through the creation of hundreds of different kinds of jobs, but also through the development of better transport infrastructure. For example, the constructed access road, roundabout, public car park and access bridge to the park are all important for the residents and visitors of Samobor and its surroundings, as it will relieve traffic in the more populated areas and facilitate access to the Bobovica business zone.

The Croatian company FACIES, which has been successfully operating for more than twenty years now, and which has been selected as the main contractor for the future RC Zone Samobor, will make a very significant contribution to the realisation of the investment indeed.

"It was with great pleasure that we received the news that another large and significant investor in the economic development of our region has chosen FACIES. We'll justify the trust given to us with our quality and knowledge and successfully realise this commendable project,'' said Marinko Mandic, the deputy director of the Croatian company FACIES.

The future RC Zone Samobor will boast more than 86,000 m² of storage space, with a net height of 12 metres, suitable for logistics as well as for various production activities. The location of this modern warehouse centre is strategically extremely favourable - it is located near neighbouring Slovenia and Western European roads, as well as the exit to the Croatian highway A3, which is ideal for trade operations and logistics.

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