Croatia’s Atlantic Grupa Raises Profitability Expectations For 2017
Croatian food producer and distributor Atlantic Grupa has raised its profitability expectations for 2017.
Thanks to the positive developments during the year, the company says that it now expects EBITDA of HRK 520 million (€68.8 million), representing growth of 9.6% compared to last year.
The group, which produces a range consumer brands including coffee, snacks, beverage and spread products, set an earlier EBITDA estimate of HRK 475 million (€62.9 million).
The company explained that the growth in profitability has resulted from a more favourable customer mix compared to expectations, positive economic trends in the Croatian and Russian markets, more efficient market investments and strict control of costs and risks, together with a favourable dollar exchange rate and coffee bean prices, as well as effectively managing those risks.
Meanwhile, Atlantic Grupa expects interest expenses for 2017 will amount to HRK 55 million (€7.3 million), compared to the previously announced cost of HRK 65 million, thanks to more favourable interest rates as a result of better operational results and continued debt payments.
The company's expected revenue for the year remains at the previously announced level of HRK 5.3 billion (€702.6 million).
© 2017 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