Croatia-based food company Atlantic Grupa has cut its sales forecast for 2014 as it battles a “challenging business environment”.
Atlantic Grupa said it had doubled the discounts it offered to stimulate sales amid factors including “extremely aggressive” competition and the floods that hit the Balkans in May.
The company expects its 2014 sales to reach HRK5.22bn (US$856.9m), up 4.3% on 2013 but down on its forecast in July of annual sales HRK5.44bn.
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By GlobalDataIt maintained its profit forecasts for a 4.9% rise in EBITDA to HRK620m and an 8.3% increase in EBIT to HRK460m.
The group, which also operates markets including Germany, Italy and the UK, saw net sales climb 2.7% to HRK3.8bn in the first nine months of the year.
Sales in Croatia and Slovenia – its largest and third-largest markets – rose. However, sales were down in Serbia – its number two market – and Bosnia and Herzegovina.
Croatian revenues were up thanks to sales of some of Atlantic Grupa’s own brands and products it distributes locally – including for companies like Ferrero and Mars Inc.
Sales in Atlantic Grupa’s “key European markets” fell amid lower sales of private-label sports and functional food products.
EBIT was up 0.7% at HRK378.5m. Net profit after minorities grew 8.2% to HRK209.2m.
