Croatia-based Atlantic Group reported a 2.6% annual growth in consolidated net profit to HRK 200.0m (€26.2m) in 2014.
The regional distributor of consumer goods and a producer of functional foods and supplements said consolidated sales rose 2.4% y/y to HRK 5.12bn (€671.6mn).
Operations were boosted by the start of the distribution of Unilever brands (including Knorr, Hellman's, Axe, Rexona, Brut, Signal, Coccolino, Domestos, Cif) in Croatia and Slovenia, the developmemt of a new factory for Multipower energy bars and the acquisition of Serbian food company Foodland.
Its Beverages Unit recorded lower sales (HRK 638.8mn) due to a decrease in sales of vitamin drinks and carbonated soft drinks. Its Coffee Unit saw a 5.9% drop in sales (to HRK 1.03bn) as a consequence of lower sales of Turkish coffee in Serbia, Bosnia and Herzegovina and Macedonia.
Sales in its Snacks Unit were slightly down (to HRK 614.4mn) due to lower sales in biscuits, flips and wafers categories, partly mitigated by launching the chips brand Chipsos. Its Savoury Spreads Unit recorded sales growth (to HRK 471.3mn) due to key regional and international markets, primarily Russia and Austria. .
Atlantic Group posted its biggest sales growth of 17.4% in Slovenia, which accounts for 15.8% of total sales. The Croatian market accounted for the highest portion in the total sales (25.1%), followed by Serbia (22.4%) and Bosnia and Herzegovina (7%).
Atlantic Group's own brands accounted for 67.0% of total sales, followed by distribution of principal brands (18%), pharmacy chain Farmacia (6.2%), while products that Atlantic Grupa produces as private labels for partners accounted for 8.8% of total sales.
Atlantic Group expects consolidated sales to rise 3.5% to HRK 5.3bn in 2015 with EBITDA expected to fall 5.4% to HRK 565m. EBIT should drop 8.1% this year to HRK 405 million, with capital expenditure at around HRK 150m.
© 2015 European Supermarket Magazine – your source for the latest retail news. Article written by Branislav Pekic
