Croatia's Atlantic Group Sees Drop In Sales In 2016
Croatian food and beverage producer and distributor Atlantic Group reported 2016 sales of €678.1 million, a 5.5% drop compared to 2015, while net profit after minority interests was €21.6 million.
The decline in sales resulted from the end of a partnership with a leading buyer of private label products in the Sports and Functional Food segment, and depreciation of the Russian ruble and Serbian dinar. Excluding these impacts, sales remained at the same level as 2015.
Last year, Atlantic Group established distribution companies in Germany and Austria for its target products. It also signed contracts with new principals in the region (Beam Suntory for the markets in Serbia, Macedonia, Montenegro, Kosovo and Albania) and in Western Europe (Sweden’s Nocco).
The company continued with the restructuring of the Sports and Functional Food segment by simplifying recipes and the product portfolio, ending the year with a more efficient business model based on less products with a higher profitability.
Four of Atlantic Group’s own brands (Cedevita, Argeta, Smoki and Cockta) are among the Top 10 brands in five major regional markets, according to a Valicon study. Also, its brands are leaders in three countries: Argeta in Bosnia-Herzegovina and Macedonia, and Barcaffè in Slovenia.
The following business units had the highest growth in sales: Savoury Spreads (9.4%), Pharma and Personal Care (5.4%) and Snacks (3.1%). With €141.3 million in sales and 20.8% share in the Group’s total sales, coffee stands out as the highest individual category.
Almost all major brands (Barcaffè, Grand Kafa, Argeta, Smoki, Cedevita, Donat Mg) recorded an increase in their respective shares in regional markets.
The highest growth (+4.4%) was recorded in the largest market - Croatia, accounting for 28.8% of the total sales, followed by Bosnia-Herzegovina (+3.9%), accounting for a 7.8% share of the total sales. The Group’s own brands accounted for 67.8% of the total sales, followed by the distribution of principal brands (21.4%).
© 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