Sunday, 5 June 2022

Banks Record €213.3m in Profits in Q1

ZAGREB, 5 June 2022 - In the first quarter of 2022, banks in Croatia recorded a total profit of HRK 1.57 billion, up 46% on the year, the central bank said earlier this week.

The profit improved the indicators of banks' profitability in relation to the end of 2021, with the return on assets increasing from 1.2 to 1.25% at the end of March and the return on equity from 8.8 to 9.5%.

All 23 banks operated at a profit. The highest profit was generated by Zagrebačka Banka (HRK 618 million), followed by Erste (HRK 279.4m) and Privredna Banka Zagreb (HRK 227.5m).

In Q1 2022, credit institutions' assets totalled HRK 506.2 billion, up 1.1% from the end of 2021.

Zagrebačka Banka had the highest assets at the end of March (HRK134.3 billion, up 1.41% from the end of 2021), followed by Privredna Banka Zagreb (HRK 107bn, up 2.14%) and Erste (HRK 86.9bn, up 5%).

The key indicators of the banking system's capitalisation in Q1 2022 remained high. The system's total capital rate dropped to 25.6 from 25.9% at the end of 2011. All credit institutions had a higher total capital rate than the required 8% minimum.

(€1 = HRK 7.5)

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

Saturday, 30 April 2022

Retail Businesses Earn HRK 2.2 Billion in Profit in 2020

ZAGREB, 30 April 2022 - A total of 9,158 businesses with 102,085 employees operated in the retail trade sector in Croatia in 2020, and the sector's consolidated result was a profit in the amount of HRK 2.2 billion, show data from the Financial Agency.

The number of retail businesses in 2020 was 3.1% up from the previous year.

In 2020, the first year of the coronavirus pandemic, those businesses earned revenues in the amount of HRK 101.5 billion, while their expenditure totalled HRK 98.8 billion.

A total of 5,450 businesses operated at a profit, a drop of 13% from the previous year while the number of loss-making businesses increased by 18.3% to 3,708.

Profit for the period amounted to HRK 3.2 billion, a drop of 6.9% from 2019, while the loss for the period dropped by 4.8% to 1.05 billion.

The consolidated financial result was a net profit of HRK 2.2 billion, a year-on-year decrease of 7.8%.

The average monthly net wage in the retail sector in 2020 was HRK 5,306, which is 8.7% more than in 2019 and 11.1% below the average monthly net wage in the enterprise sector in Croatia (5,971).

Konzum Plus with highest revenue

The Konzum Plus retailer earned the highest revenue in 2020, HRK 10 billion.

It is followed by Lidl Hrvatska, with HRK 6.1 billion, and Spar Hrvatska with HRK 5 billion.

The highest profit for the period in 2020 was earned by Lidl Hrvatska, in the amount of HRK 274.8 billion.

Number of employees, revenue, net profit increase between 2016 and 2020

In the period from 2016 to 2020, the number of employees in the retail sector grew by 12.1%, total revenue increased by 16.4%, expenditure by 15.3% and net profits by as much as 84%.

Retail businesses operated at a profit throughout the period, the highest profit being reported in 2019, amounting to HRK 2.3 billion.

The number of employees in the period grew by 11,058 or 12.1%, from 91,027 employees in 2016 to 102,085 in 2020.

The average net wage grew by 23.7% from HRK 4,288 in 2016 to HRK 5,306 in 2020.

(€1 = HRK 7.5)

Saturday, 12 March 2022

Textile Businesses Net HRK 81m in Profits in 2020

ZAGREB, 12 March 2022 - In 2020, textile businesses netted HRK 81 million in profits, up 42.4% on the year, according to the Financial Agency.

That year there were 334 textile businesses with 3,521 employees.

Their revenues totalled HRK 1.6 billion, down 4.2% on 2019, while expenditures were HRK 1.5 billion, down 5.6%. Profits totalled HRK 99.5 million (+17.1%), while losses were HRK 18.6 million (-34.1%).

Most of the textile businesses operated in Zagreb (84), followed by Primorje-Gorski Kotar County (33) and Krapina-Zagorje County (27).

The average net monthly pay was HRK 4,618, up 5.6% from 2019 but down 22.7% from the national average.

In 2020, the biggest revenue was generated by the Aquafilcro company, HRK 219.4 million, while the biggest profit was generated by Meditex, HRK 17 million.

(€1 = HRK 7.5)

For more, check out our business section.

Tuesday, 1 March 2022

HNB: Credit Institutions Generate €750m In Profit Last Year

ZAGREB, 1 March 2022 - Credit institutions in Croatia operated at a profit of HRK 5.6 billion (€750 million) in 2021, which is an increase of 108.8% on the previous year, the Croatian National Bank (HNB) said on Tuesday citing unaudited preliminary data.

In addition to the increase in profit, banking sector recovery resulted in the increase in profitability indicators so the return on assets grew from 0.6% to 1.2%, while the return on equity went up from 4.4% to 8.7%.

The effects of retained profit and targeted regulatory adjustments related to the pandemic in 2021 continue to be mirrored in the very high values of key indicators of banking system capitalisation. At the end of 2021, all credit institutions boasted total capital ratios exceeding the minimum 8%, while the total capital ratio of the banking system reached 25.6%.

Credit institutions’ liquidity measured by the liquidity coverage ratio remained high, totalling 202.5% at the end of December 2021. All credit institutions met the prescribed minimum liquidity requirements.

According to unaudited preliminary data, total assets of credit institutions increased by HRK 38.4 billion from 2020 (8.3%) and reached HRK 500.8 billion. Assets increased in most credit institutions.

At the end of last year, 20 banks operated in Croatia, employing 18,200 people.

(€1 = HRK 7.5)

Thursday, 24 February 2022

HT Posts HRK 614M In Net Profit in 2021

ZAGREB, 24 Feb 2022 - Hrvatski Telekom (HT) generated a net profit of HRK 614.4 million in 2021, which is 7.1% more than in 2020, the telecommunications company reported on Thursday.

According to the information published on the Zagreb Stock Exchange, HT ended the year with total revenue of HRK 7.5 billion, which is one percent less than in 2020 while the HT Group's "organic revenue" in 2021 registered an increase of 1.1% on the year.

Total consolidated net revenue decreased by HRK 64 million or 0.9% y-o-y with the group's revenue decreasing by 1.1% while Crnogorski Telekom in Montenegro registered an increase of 2.5%.

Total expenditure was decreased by 1.4% on the year and amounted to HRK 6.7 billion.

"Organic EBITDA after loans increased 7.9% on the year which is an increase of EBITDA after loans for the fifth quarter in a row and confirms the continuation of strong positive business development and effects of transformation measures."

In the past five years, investments amounted to HRK 9 billion, making HT the biggest investor. Capital investments in 2021 were more than HRK 1.7 billion, which is more than the 1.6 billion planned.

Last year HT paid HRK 742 million in dividends to its shareholders, the company told Hina.

For more, check out our business section.

Thursday, 24 February 2022

Atlantic Grupa Posts Record Results for 2021

ZAGREB, 24 Feb 2022 - Atlantic Grupa generated HRK 345.9 million net profit in 2021, which is 1.1% more than in 2020, while sales revenues reached HRK 5.7 billion, increasing by 8.6% from 2020 and by 9.3% from the pre-pandemic 2019, the retail group said in a financial statement on Thursday. 

Earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 1.1% to HRK 724.4 million, and the same increase was recorded for net profit, which amounted to HRK 345.9 million.

“Last year, Atlantic Grupa showed a high level of stability, despite economic disruptions caused
by the prolonged COVID-19 pandemic and difficulties with global supply chains, and we have
concluded our jubilee 30th year of operation with the historically highest revenues," CEO Emil Tedeschi said in a comment on the results achieved.

All business segments recorded growth thanks to, among other things, significant marketing, and capital investments, a better epidemiological situation in all markets, and a significantly better tourist season in Croatia compared to 2020.

Among the group's markets, Croatia led with a growth of 12.8% and was followed by Bosnia and Herzegovina with 8.8% growth and Serbia with 8.3% growth.

Own brands accounted for 62.6% of total sales, principal brands for 28.1%, and Farmacia for 9.3%.

Last year, Atlantic Grupa continued the planned investments, notably in technology in Atlantic Štark, new forms of Cedevita packaging, and the new Argeta factory near Varaždin. The value of this project exceeded €50 million and was expected to create up to 150 new jobs

For more, check out our business section

Monday, 21 February 2022

Zagrebačka Banka Posts HRK 2.01 Billion Profit in 2021

21 February, 2022 - Zagrebacka Banka (Zaba) generated a profit after tax of HRK 2.01 billion in 2021, up HRK 1.27 billion or 173.2 percent compared to 2020, according to the bank's financial statement released on Monday.

At the same time, the bank's operating income amounted to HRK 4.41 billion, which is an increase of HRK 792 million or 21.9% on the year.

Furthermore, the bank's unconsolidated and unaudited financial report notes that operating expenses amounted to HRK 1.57 billion, down HRK 17 million on the year, with cost-to-income ratio amounting to 35.7%.

Deposits by clients, which constitute a primary source of financing, amounted to HRK 107.23 billion, which is an increase of HRK 8.9 billion, while deposits by credit institutions amounted to HRK 2.6 billion, down by HRK 3.13 billion, mostly due to a decrease in within-group financing and deposits by other banks.

Zaba group posts net profit of almost HRK 1.5 billion

According to the group's consolidated unaudited financial statement, the Zagrebačka Banka Group generated a net profit of almost HRK 1.5 billion, up by HRK 495 million or 49.3% from 2020.

The group's operating income amounted to HRK 4.7 billion, up HRK 87 million or 1.8% year on year, while operating expenses amounted to HRK 2.2 billion, about the same as in 2020.

Results still impacted by disruptions caused by pandemic

The bank said that the bank's results were still influenced by disruptions caused by the COVID-19 pandemic.

However, the decrease in operating income was compensated for with lower expenses of value adjustments on loans as a consequence of economic recovery in 2021, the bank said in its financial statement.

Friday, 30 April 2021

Podravka Group Generates Q1 Net Profit of HRK 105.2 Million

ZAGREB, 30 April, 2021 - The Podravka Group generated a net profit of HRK 105.2 million in the first quarter of 2021, an increase of 15.6% over the same period in 2020, the Koprivnica-based food company said in a financial statement on Friday.

Sales revenue amounted to HRK 1.08 billion or 12.1% less compared to the same period last year.

Podravka said that the decrease in revenue had been expected and was in line with business plans.

"The expected fall in sales revenue compared to 2020 was due to the unusual withdrawal of goods from buyers and extra stocks created in March last year as a consequence of the lockdown in most of the countries where Podravka is present."

The company's supervisory board adopted the revised business results for 2020 which show that the group had generated a net profit of HRK 248.9 million, or 12.3% more than in 2019.

 (€1 = HRK 7.5)

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Friday, 16 April 2021

The Croatian National Bank (HNB) Reports HRK 266m Profit in 2020

ZAGREB, 16 April, 2021 - The Croatian National Bank (HNB) generated a profit of nearly HRK 266 million in 2020, achieving a positive result for the second consecutive year, but the profit was almost three and a half times lower than in 2019, according to the central bank's audited financial statement released on its webpage.

For the sake of comparison, the HNB had posted a profit of just over HRK 927 million for 2019.

Of last year's profit, HRK 53.2 million was paid into the bank's general reserves and HRK 212.8 into the state budget, in accordance with the Act on the Croatian National Bank.

The financial statement also shows that the HNB last year generated HRKK 591.7 million in net interest income, which is nearly HRK 88 million or 17.4% more than in 2019.

At the same time, net fee and commission income was HRK 34.4 million, or 11% higher, while operating income was HRK 703.3 million, or 48% lower compared with 2019.

The HNB's operating expenses in 2020 reached HRK 419.5 million, or 6% more. In 2020, the HNB had an average of 690 employees, which is 19 more than in 2019, and total employee costs were HRK 203 million.

(€1 = HRK 7.567447)

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Thursday, 11 April 2019

ACI Achieves Massive Revenue, Biggest Investment in History Completed

As Poslovni Dnevnik writes on the 10th of April, 2019, Croatia's ACI has published its revised annual financial statements for 2018. The company's revenue growth trend thankfully continued in 2018, its total revenue grew by seven percent when compared to 2017, amounting to 216 million kuna, while the company's operating income increased by eleven percent to 211 million kuna.

Revenues have been growing in almost all of ACI's marinas, and the company's profit also grew by 54 percent to a massive 38.4 million kuna, while its EBITDA increased by 22 percent to 93.9 million kuna.

The largest single investment project in ACI's history was also completed. In March, a new license was issued for the new ACI marina in Rovinj. This is a project that in which over 150 million kuna has been invested and can be briefly described in just four words: beauty, luxury, innovative solutions and security. The new marina's categorisation is now underway.

The new ACI marina has 1,400 m2 of commercial space available, and special attention has been paid to providing high level services on the premises, including catering facilities, restaurants and café-lounge bars, grocery stores, wellness centres, world-renowned brands, reputable sales offices for luxury yachts, charter agencies, a service centre for boats, etc.

The Rovinj ACI marina is equipped with the latest generation of WiFi systems, and luxury boats are provided with the most advanced video surveillance and access control system available. Particular care was taken to protect the surrounding environment and maintain the purity of the marine environment, construction materials and energy systems that provide maximum energy efficiency were used during construction, and all the benefits of LED lighting technology and lighting management were properly and readily applied. The official opening of the marina will be at the end of April this year.

The modernisation of the business that ACI has been intensively pursuing over the last few years is primarily focused on raising the quality of its services, attracting new clients and exploring the market potential of the Adriatic region as a whole.

Back in 2018, the company first published its own ACI No1 magazine, both in print and in digital format. It is a magazine which combines an ACI marina catalog, information for boaters, exclusive reportages and lifestyle themes, and a 2019 issue is just been made available.

ACI also achieves excellent results in the area of ​​digital business with its own reservation system. From last season, boaters have also had ACI's mobile application that provides easy and quick access to information and booking links available to them. For the third year in a row, ACI has also been using a digital sailing system with the help of special applications and devices used by sailors.

Given ACI's steady growth, 2018 was also marked by market research and a look into the development potential of the company, following which, a decision was made to embark on the development of new products and services, which will contribute to the diversification of the company's business.

Business cooperation includes the purchase of six ClubSwan36 sailing boats, and a range of marketing activities aimed at creating a recognisable image, regatta organisation, promotion and the creation of a tourism product aimed at raising the quality of ACI's services and the overall image of the Republic of Croatia as the world's leading nautical destination.

Make sure to follow our business, lifestyle and travel pages for much more.