Revenue from the sales of good and services amounted to EUR 770 million and was 15% higher than previous year. Consolidated earnings before interest, taxes, depreciation and amortisation (EBITDA) amounted to EUR 162 million and were 3% higher than last year's. Net profit in the first nine months of 2023 amounted to EUR 103 million, which is a growth of 8%.
“The Group achieved a growth of net profit despite a strong negative impact of the costs of claims and, consequently, Croatia osiguranje's lower results. This once again confirms that Adris has a balanced portfolio of businesses”, as the Croatian conglomerate representatives declared in a statement.
In the first nine months of 2023, the tourism business sold 1.83 million units, which is 4% more compared to last year's reporting period and 3% more compared to the record year of 2019. The Istrian division achieved 2% higher sales compared to the first nine months last year and 8% higher compared to the same period in 2019. Zagreb hotels grew 18% while Dubrovnik hotels grew 12%. The hotels in Zagreb achieved 80% of 2019 sales, while the Dubrovnik division achieved 91% of units sold in 2019. The tourism business achieved EUR 274 million in revenue from the sales of goods and services, which is 18% higher compared to the first nine months of last year or 33% higher compared to the same period 2019. Earnings before interest, taxes, depreciation and amortisation (EBITDA) amounted to EUR 108 million and were 16% higher. EBIT amounted to EUR 78 million in the first nine months, while net profit amounted to EUR 75 million, which is an increase of 22%.
This year's planned investments in the tourism business amount to nearly EUR 100 million, the largest proportion of which concerns investments into camps in Istria as well as Zonar Hotel in Zagreb and Marjan Hotel in Split. This year's investments into camps have substantially increased the quality of the product and offering, and 305 new mobile homes were also introduced on the market. By the next tourist season, it is expected that nearly three quarters of camp capacities operated by Adris' tourism branch will be at the 4-star level of quality, with the ambition to further increase that proportion.
The post-season booking is showing a continuation of positive trends.
Consolidated revenue from insurance sales, including regional subsidiaries, amounted to EUR 348 million, which is 11% higher compared to the first nine months of last year. Consolidated net profit amounted to EUR 31.2 million and was 27% lower.
In July and August, Zagreb and its surroundings, as well as central and eastern Croatia, were hit by storms that caused material damage on vehicles, immovable property, crops and plantations amounting to more than EUR 30 million. In the first few days after the storms, more insurance claims were submitted than the total number of claims submitted after the earthquakes in Zagreb and Petrinja. Although the company has adequate reinsurance protection and will compensate a substantial number of claims through existing reinsurance contracts, the negative impact of these claims on the company's business operations amounts to more than EUR 20 million.
The digital business segment recorded new positive results in the first three quarters of 2023. The premium from Croatia osiguranje's overall digital business operations grew by 25%. Laqo, the company's digital brand, recorded a 50% growth of premium. The cumulative growth of the overall digital segment in the first nine months of this year stood at 41%.
Croatia osiguranje's investments in the healthcare business amounted to EUR 20 million in the past three years. In the first three quarters of 2023, Croatia Polyclinic recorded a 58% growth of revenue from core business. In the first half of the year, a new Croatia Polyclinic was opened in Osijek, the sixth in Croatia, and three other polyclinics will be opened by the end of the year, in Zadar, Varazdin and Split.
In May, Croatia osiguranje launched Spektar, a unique bundle offer on the insurance market which combines insurance policies within a household, thus allowing all members of the household to enjoy additional benefits and save money. The market recognized and quickly welcomed this innovation, and more than 43,000 households joined Spektar in the five months since it was launched. With this, Croatia osiguranje reaffirms its position as a leader in innovation on the insurance market.
In the first nine months of 2023, Cromaris recorded EUR 80 million in revenue from the sales of goods and services, which is 4% higher compared to the same reporting period last year. Sales volume of 10,326 tonnes of whole fish equivalent was achieved. Foreign markets continue to account for a large proportion of Cromaris' sales – 87% of both sales volume and sales revenue. When it comes to foreign markets, the highest growth of revenue was recorded on the Austrian and French markets. In the differentiated products portfolio, which accounted for 36% of the revenue in the first nine months, processed products – packed and cleaned fish – continue to record the highest growth alongside meagre. In the current year, prices in all key procurement categories further increased, particularly the prices of fish food, which is the largest operating expense. Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to EUR 9.9 million and was 16% higher. In the first nine months of 2023, Cromaris earned EUR 3 million in net profit.
Cromaris opened two own stores in Zagreb and Pula, which offer a large selection of fresh fish and fish delicacies from Cromaris' range of products, alongside other top-quality products. In addition, these stores also have an informative and educational role, which has an added impact on building and strengthening the Cromaris brand.
Cromaris is continuing to implement transformation initiatives with an emphasis on profitability, specifically in two key areas – market business and operations.
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