Croatian FMCG distributor and private label producer Atlantic Grupa has reported total sales of HRK 5.3 billion (€711.5 million) for full year 2017, a 3.9% increase on the previous year.
EBITDA at the business grew 22.7% to HRK 582.2 million (€78.2 million), while net profit increased by 69.2% to HRK 275.5 million (€36.9 million).
Growth was achieved in almost all the business' major markets and segments, with record revenues posted in Croatia and Slovenia.
Divisional Performance
Beverage sales at the group were up 7.3%, while Savoury Spreads and Pharma & Personal Care each saw 7.0% growth. Accounting for 20.7% share of the group's total sales, Coffee is the business' largest individual product category, with sales of HRK 1.1 billion.
Atlantic Grupa brands including Argeta and Donat Mg in Croatia and Serbia, Barcaffe and Cedevita in the HoReCa channel, Kala, Kalnička and Štark in Croatia, and Multivita and Donat Mg in Russia stood out last year, posting double-digit growth, the company said.
All key brands increased or retained their market shares.
Distribution
In terms of the business' distribution arm, Croatia (+6.9%) and Serbia (+3.0%) were strong performers, while the highest growing market was Russia and CIS (+23.1%).
Although the sales to its biggest regional retail partner Agrokor dropped more than 15% compared to 2016, that drop was more than compensated by an increase in sales to other buyers (+5.1% in Serbia, Croatia and Slovenia).
New distribution contracts were signed with Red Bull in Serbia (worth HRK 30 million) and with the Mars company in Croatia (worth HRK 100 million).
At the end of the year, Atlantic Grupa also commenced the production of Argeta private label savoury spreads in the USA, initially targeting the ethnic segment.
Expansion Plans
The German market remains at the centre of Atlantic Grupa's international expansion plans, with the group intending to increase distribution with local partners in order to bolster the efficiency of this market.
Last year, Atlantic Grupa divested its sports and functional food production segment, selling its factories in Bleckede and Nova Gradiška and the associated private label production to Belgium’s Aminolabs.
For 2018, Atlantic Grupa will focus on further strengthening the position of well-known regional brands, develop its distribution operations, increase its regional HoReCa portfolio, and continue to internationalise its operations.
Atlantic Grupa operates in 80 countries, has a network of 19 distribution centres and direct access to more than 60,000 retail outlets in Southeast Europe.
© 2018 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
