An excellent start to the year with the conclusion of the acquisition of Strauss Adriatic and strong growth

In the first quarter of 2024, ATLANTIC Group recorded sales revenue in the amount of 236.6 million euros, which represents an increase of 9.8 percent compared to the same period last year.

Profit before interest, tax and depreciation (EBITDA) increased by 20.3 percent to 25.2 million euros, while net profit increased by 3.2 percent and amounted to 9.9 million euros.

– Excellent sales results at the beginning of the year enabled a strong growth in profitability despite the significant increase in the price of cocoa and raw coffee and logistical challenges that are still ongoing, as well as increased investment in people and marketing. By concluding the acquisition of Strauss Adriatica, we have confirmed Atlantic Grupa’s strategic determination to strengthen our core business, specifically the growth of the coffee category and the strengthening of the competitiveness of the regional industry and local brands. We continue with significant capital investments, as well as innovations in the product portfolio, among which the launch of Argeta’s meatless range stands out. Despite the challenging geopolitical and macroeconomic environment, we remain convinced that we will continue to grow our business in a sustainable manner – emphasized the President of the Management Board of Atlantic Group, Emil Tedeschi.

Beverages, Pharmacy and Coffee are leading the way in growth

The greatest growth was achieved by the Strategic Business Areas (SBA) of Beverage (16.0 percent), Pharmacy (11.8 percent) and Coffee (9.4 percent). Coffee, as the largest individual category, participates in the total revenue with 20.1 percent. In terms of distribution, the Strategic Distribution Area (SDP) North Macedonia leads with a growth of 11.6 percent, followed by SDP Croatia with a growth of 10.6 percent and Serbia with a growth of 9.0 percent. In Atlantic Grupa’s total sales, own brands account for 61.9 percent, pharmacy business 9.5 percent, while principal brands account for 28.6 percent of sales revenue.

On March 1, Atlantic Grupa concluded the takeover of Strauss Adriatica, the owner of the Serbian coffee brands Doncafe and C coffee, and with this acquisition they join the regional leaders Grand coffee and Barcaffe. Atlantic also took over a modern production facility in the Šimanovci industrial zone near Belgrade and 220 employees, and the transaction was previously conditionally approved by the Commission for the Protection of Competition in the Republic of Serbia. A significant innovation in the production program was brought by Argeta in the first quarter with the launch of meatless spreads with a meat flavor, in accordance with the development of trends in nutrition.

A pioneer of reporting according to ESRS standards and a champion of gender equality

The annual report of Atlantic Grupa for the year 2023 was published in compliance with the new legal regulation of non-financial reporting, which means that, in addition to the usual items, ESRS (European Sustainability Reporting Standards) is applied within the framework of sustainability, thus establishing Atlantic Grupa as one of the first companies on these spaces that apply new standards. In addition, Atlantic Droga Kolinska was declared the champion of Slovenia in ESG for 2024, confirming that Atlantic uniformly fulfills ESG obligations in all three areas – environment, society and management. All indicators are connected in the company’s sustainability index, which indicates the company’s success in realizing annual goals, and commitment to sustainable development was particularly visible in that Atlantic Grupa exceeded the set goals of the Sustainability Index for 2023.

Speaking of responsible practices, it should also be noted that Atlantic Grupa is the winner of the important award “Equal Pay Champion”, a certificate of equal pay from the selection company Selectio. Analyzing the Atlantic Group, a commitment to monitoring gender diversity within the company and correcting the share of women in management functions where there are such deficiencies was established. Thus, in Atlantic Group, 55 percent of women are in management positions, 58 percent are in development programs and 52 percent of women are employed through internal competitions, and there is no difference in salaries, i.e. it is insignificant and amounts to 2.6 percent in favor of women.