Thursday, 25 May 2023

Croatian Atlantic Group Has Offer for Strauss Adriatic Accepted

May the 25th, 2023 - The Croatian Atlantic Group (Grupa), headed by Emil Tedeschi, is returning to making acquisitions with an offer for Strauss Adriatic, which has since been accepted.

As Poslovni Dnevnik writes, following several years of disinvestment and so-called non-strategic business operations, the well known Croatian Atlantic Group is returning to acquisitions.

Over more recent days, the company announced that they had submitted a binding offer for the purchase of the Strauss Adriatic company, which is located in neighbouring Serbia, and which the Strauss Group has since officially accepted.

The conclusion of the transaction, which for the Croatian Atlantic Group means strengthening the competitiveness of the regional coffee industry and local brands, remains subject to the prior approval of the Serbian Commission for the Protection of Competition.

The binding offer is based, according to the Atlantic Group "on the total value of the transaction (enterprise value) of 40.5 million euros, without debt and cash, and assuming the regular level of normalised net working capital on the day of the conclusion of the transaction".

Strauss is known for its strong coffee brands on the Serbian market - Doncafe and C coffee. By closing this acquisition, they should join regional leaders such as Grand coffee and Barcaffe, which are already part of the Croatian Atlantic Group's widening and enviable portfolio and are known here on the Croatian market.

The development of the Croatian Atlantic Group's key product categories, organically and through acquisitions of other strong brands, are the basis of the company's development strategy.

The company's main man, businessman Emil Tedeschi, recently said that the Atlantic Group "is in a strong acquisition mode, ready for something that can be called a transfer acquisition - but for that, it takes two to tango”.

For more on Croatian businesses, innovation and entrepreneurs, make sure to check out our dedicated business section.

Tuesday, 2 May 2023

Croatian Atlantic Group Enjoys Rapid Revenue Growth

May the 2nd, 2023 - The well known and wildly successful Croatian Atlantic Group (Grupa) headed by Emil Tedeschi has experienced rapid revenue growth. The plan is for that to continue.

As Poslovni Dnevnik writes, during the first quarter of 2023, the Croatian Atlantic Group recorded sales revenue in the enormous amount of 215.6 million euros, which represents a growth of 16.8 percent compared to the same period last year. Under the influence of significant price increases in a wide range of business activities, profit before interest, taxes and depreciation (EBITDA) decreased by 12.2 percent and amounted to 20.9 million euros, while net profit in the first three months of this year decreased by 20.4 percent and amounts to 9.6 million euros.

"In the first quarter of 2023, the Croatian Atlantic Group achieved strong sales growth in all business and distribution areas and across all of the major markets in which it operates. The prices of raw materials and packaging materials, logistics and other services and energy are still at high levels, which, as we announced, affected profitability, and the drop in profitability was partially mitigated by optimising internal resources and increasing product sales prices. With the strength of our brands and our people, operational efficiency and with investments in digitisation, modernisation and business sustainability, we're ready for further growth,'' said the President of the Management Board of the Atlantic Group, Emil Tedeschi.

The largest growth of 34.0 percent was achieved by the Strategic Business Area (SBA) Sweet and Savory, whose leading brands are Smoki and Najlepse zelje (The most beautiful wishes), under the influence of assortment optimisation, increased marketing activities and a better price position of products compared to the competition. This area is followed by SPP Pice (Drinks) with the leading brand being Cedevita and growth standing at 23.8 percent, and SPP Kava (Coffee) with the brands Barcaffe and Grand coffee, and growth of 14.5 percent. Among the distribution areas, neighbouring Serbia leads the way with growth of 24.0 percent and Croatia has experienced growth of 20.0 percent.

When it comes to the Croatian Atlantic Group's total sales, principal brands account for 27.1 percent, Farmacia accounts for 9.4 percent, while its own brands account for 63.5 percent of sales revenue. With a share of 20.1 percent in total sales revenue, coffee stands out as the largest single category of all.

Cooperation with Podravka

Back at the end of March this year, the Croatian Atlantic Group and the well known Podravka Group agreed on cooperation across the pond in the United States of America and much closer to home in nearby Austria. The two large domestic companies introduced a unique practice of mutual export support, which implies that the Atlantic Group's distribution company in Austria will provide support for the placement of Podravka's products on the Austrian market, and at the same time, Podravka will market Atlantic's products on the US market through its company located over in the USA. The goal of this cooperation is to maximise mutual synergies by strengthening the product placement of both companies and raising the recognition of their brands, using their already very well developed business network and the enviable market positions that Atlantic and Podravka have on these markets.

For more, make sure to check out out dedicated business section.

Thursday, 2 March 2023

Croatian Atlantic Group Expects Continued Growth, Another Record Year

March the 2nd, 2023 - The Croatian Atlantic Group is no stranger to success and eye-watering figures when it comes to revenue, and it only expects that trend to continue. Another hope is for yet another record year.

As Marija Brnic/Poslovni Dnevnik writes, the Croatian Atlantic Group (Grupa) ended last year with record revenues, and despite the expected less favourable economic conditions, the company expects to continue this trend this year as well. They expect to be able to mark up record sales totalling around 900 million euros.

According to the company's just published unaudited financial report, the Croatian Atlantic Group concluded 2022 with total revenues of 6.37 billion kuna, (850 million euros) which were 11.8% higher than they were back during the previous year.

Such optimism within the Croatian Atlantic Group is based on estimates that the prices of raw materials, packaging materials and energy sources should not reach record levels from back in 2022, but they still expect significant volatility. Negative pressures, on the other hand, will be alleviated by Croatia's entry into the Eurozone and the Schengen area which took place on the very first say of 2023.

In their unaudited financial report, the Croatian Atlantic Group estimates that purchase prices, regardless of stabilisation measures back at the end of 2022, are significantly above the level from the pre-crisis period, and based on this they expect a lower normalised EBITDA margin this year. They also note that in the first half of 2022, the impact of the increase in the price of raw materials and packaging material was significantly lower compared to the second part of the year, considering that Atlantic acquired a large part of the quantities they had at more favourable prices than the then market prices. That alone would result in a drop in profitability in the first part of 2023, primarily in the first quarter. On the other hand, they expect to see the beginning of the recovery of their profit margins in 2024.

This year, as can be seen from the report, management's focus, in addition to dealing with the problems of inflation and supply chains, will be on the internationalisation of certain brands and the development of the distribution business by strengthening existing and acquiring new principals, and on possible mergers and acquisitions.

The Croatian Atlantic Group closed the last business year with a net profit of almost 196 million kuna, at the same time, revenues grew by 11.8% on an annual basis, while profit was weaker by 43%, and according to the unaudited financial report, EBITDA was reduced by 20.6% compared to 2021, to 575.4 million kuna in total. The biggest impact on the drop in EBITDA was the high costs of raw materials, energy and logistics, the very negative impact of which exceeded sales growth across all Atlantic's business areas.

"Despite numerous challenges, the Croatian Atlantic Group achieved historically record sales results during 2022, and growth was achieved across all business and distribution areas. After the years dominated by the coronavirus pandemic, 2022 was marked by Russian aggression against Ukraine, which caused an energy crisis, additional disruptions in supply chains and significant price increases for almost all strategic raw materials and services.

We were only able to partially compensate for these price increases by optimising our internal resources and to a lesser extent by increasing our sales prices, which, as expected, led to a drop in profitability. Regardless of this, we continued with our investments in business development - innovations in our production portfolio, the modernisation of our production capacities and the continuation of the digital transformation,'' noted the President of the Management Board of the Croatian Atlantic Group, Emil Tedeschi.

For more, make sure to check out our business section.

Friday, 27 May 2022

Croatian Soldiers to Get Atlantic Group's "Super Sweets" in Survival Kits

May the 27th, 2022 - Croatian soldiers are set to be given so-called ''super sweets'' from Emil Tedechi's wildly successful company, Atlanric Group (Grupa), in their survival kits.

As Poslovni Dnevnik/Marija Brnic writes, Croatian soldiers will once again have packets of the only Croatian-made ''compressed sweets'' that can replace meals in extraordinary circumstances.

The Ministry of Defense announced that a contract with the Atlantic Group and as such Cedevita, worth 607,000 kuna, had now been concluded. The procurement of these “energy bombs” which work to keep the body functioning when food isn't available was carried out through a negotiated procedure without prior publication, in accordance with the Public Procurement Regulation in the field of defense and security.

Such a procedure has been justified by the fact that it is the only such product, in the development of which, in addition to the Faculty of Food Technology and Biotechnology and Atlantic, the Croatian Ministry of Defense itself actually participated.

Croatian soldiers have been using these compressed super sweets for ten years now, and the packages are intended for six days of human survival. As a rule, they are used by special forces, pilots, sailors and soldiers when on missions.

One packet of these super sweets every day is enough for a soldier to avoid a hypoglycemic attack when in extreme situations. The current regulations also prescribe the use of these meal replacement sweets as an energy supplement in the regular diet of Croatian soldiers, but the Ministry of Defense explained that they are not usually used in regular activities, but they must be in stock to be made immediately available for any given time they might well be needed.

The shelf life of these Atlantic Group-made compressed sweets is an impressive four years. Here in Croatia, Atlantic Group is the only company to produce this form of food, and although the company counts on breaking their sweets into the so-called Survival ration packages of other NATO armies around thw world, it is, as it turns out, still a very difficult market to try and conquer.

For more, make sure to check out Made in Croatia.

Tuesday, 26 June 2018

“Croatia Feeling Positive Effects of EU Membership”

ZAGREB, June 26, 2018 - Atlantic Group management board president Emil Tedeschi said on Tuesday that Croatia undoubtedly was feeling the positive effects of European Union membership and that as a state it should capitalise on all the advantages membership provides.

Wednesday, 21 March 2018

Mate Rimac, 2018 Entrepreneur of the Year: "We Need to Work Together and Value Success"

While petty minds are squabbling over trivial matters in online comment sections, goal-driven Croatian entrepreneurs and investors remain focused on building a better future - one where we just might see Croatia's name on the global map. A report from last night's EY Entrepreneur of the Year Award ceremony in Zagreb on March 21, 2018

Tuesday, 31 October 2017

Atlantic Group Not Feeling Effects of Agrokor Crisis

One of the most significant privately-owned Croatian companies continues with good business results.

Wednesday, 27 July 2016

Mayor of Koprivnica Protests against Changes to Podravka Ownership Structure

Although business and politics should be separate, the Mayor of Koprivnica has his opinion about who should be the company’s owner.

Thursday, 30 June 2016

Tedeschi: We’ll See What Plenković Can do for HDZ, my Friendship With Milanović was not Beneficial

Podravka would in synergy with Atlantic Group achieve significantly higher growth rates and it is blasphemy to say it is the pivoting company for agricultural production in Croatia, said the Management President of Atlantic Group Emil Tedeschi, in the Pressing show of N1 television, calling out the Tax Bureau for mobbing entrepreneurs

Thursday, 28 April 2016

One Business Leader Is Ready for Younger Challengers

Emil Tedeschi says he would be happy to see more young entrepreneurs.

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