Grupas sport food sales take hit in first half

Grupa's sport food sales take hit in first half

Croatia's Atlantic Grupa appears on course to achieve its annual sales target after posting a 2% increase in first-half revenue, led by growth in its own-branded products.

The Zagreb-based maker of snacks, spreads and sports food booked sales of HRK2.5bn (US$395m) in the six months through June from a year earlier, compared with a 2017 goal of HRK5.3bn, according to its earnings statement today (27 July). Net profit rose more than 15% to HRK154m.

Grupa, whose markets include Serbia, Macedonia and western Europe, plans to sell two factories in Germany and Croatia to Belgian company Aminolabs Group, with the total transaction valued up to HRK200m. The Croatian company hopes to complete the deal in the last quarter of this year and will make a gain of around HRK50m from the sale, the earnings statement said. The move is part of restructuring and to simplify operations in the sports and functional food segments.

Sports and functional foods was the only business area to see a decline in first-half sales, which dropped to HRK201m from HRK257m. The company's coffee sector continued to lead the pack in terms of revenue generated, followed by beverages, and sweet and salted snacks.

Earnings before interest, tax, depreciation and amortisation climbed 8.4% to HRK282m in the six months to give an EBITDA margin of 11.2%, up from 10.6% in the first half of 2016. The company's full-year target is HRK475m. Operating profit, or EBIT, came in at HRK204m, representing an increase of 6.2%.