Croatia-based food producer and distributor Atlantic Grupa generated a net profit of HRK 390.4 million (€51.4 million) in 2019, up 59.8% on the previous year.
The company's sales grew 5.4% to HRK 5.43 billion (€714.7 million) in the period, while EBIT was up 59.8% to HRK 390.4 million (€51.4 million).
Operating profit, on a comparable basis, increased 13.1%, while net profit was up 28.9%.
The overall growth in sales revenue was driven largely by strong performance of delicatessen spreads (+7.7%) and beverages (+5.2%).
With HRK 1.13 billion (€148.7 million) in sales, coffee accounted for 20.9% of the total revenue.
In the distribution business, the Croatian market saw the highest growth of 8.2%, followed by Slovenia at 3.7%.
Private-label goods accounted for 64.1% of total sales, while manufacturers' brands accounted for 27.5%.
Last year, the company signed new distribution contracts in North Macedonia with Ficosota and Beiersdorf and in Serbia and with Saponia and Kandit in Slovenia.
Atlantic Grupa also opened a new logistics centre near Velika Gorica.
The first phase of the development provides a storage capacity of 30,000 pallets, with the possibility of modular expansion according to business needs.
The company continued to pursue its strategy to disinvest non-core businesses and focused on key areas that contributed to growth.
Atlantic Grupa exited the sports and active nutrition segment with the sale of Tripoint, including the Multipower, Multaben and Champ brands, to former distributor, Genuport.
It also exited the diet supplement segment with the sale of Fidifarma and Multivite to PharmaS.
The company said that it is set to focus on core categories to drive growth, including coffee, beverages, delicacies, and sweet and savoury snacks; the growth and development of its distribution business; and the Farmacia pharmacy chain.
This includes targeted international expansion with brands that have proven international potential, primarily Argeta and Donat Mg, as well as M&A operations, the company added.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine.