Croatia osiguranje's owner is operationally and financially ready to take the next business step

15 June 2022 — Andrei Victor
Croatian conglomerate ADRIS Grupa with business in tourism, food production and insurance (Croatia Osiguranje) announced on the occasion of its Group AGM that the YE 2021 net result of more than HRK 400 million (~EUR 53 million) "is still below the company's potential".

Presenting last year's business results, Adris grupa CEO Marko Remenar pointed out that "in 2021 the pandemic continued to have a significant impact on our business, especially in the first half of the year, when we operated in significantly restricted circumstances. Our businesses reacted differently. Tourism continued to cope with a considerably reduced demand in the first six months, health food also faced challenges, primarily in the wholesale segment, while the pandemic mostly had a positive impact on insurance, as reduced mobility resulted in less damages and consequently led to a better result. In such circumstances, all three of our businesses have achieved growth in both revenues and profit. The Group recorded a consolidated net result of more than HRK 400 million. This results is still below the company's potential, but is nevertheless solid in given circumstances and guarantees the company's further growth, increase in investments and dividends paid to shareholders".

Meanwhile, inflation has become the key macroeconomic and even social topic. "What started as a result of a disruption of supply chains took full swing due to war activities in Ukraine. The combination of the still hindered supply chains and significant growth and volatility of prices of energy, food and a range of raw materials still keep us in a working regime that requires rapid response and considerable adaptability of the entire system. Adris's shallow and efficient organisation allows quick response to the current environment, while business diversification and a well-balanced portfolio enable continuity of development in uncertain conditions. The fact that we will soon be joining the euro area and hopefully the Schengen area as well, should further mitigate the systemic risks the Croatian economy is exposed to and have a relatively positive impact on the conditions we operate in".

Adris grupa recorded HRK 5.7 billion in total revenues in 2021, 20% more than the year before. Revenue from the sale of goods and services amounted to HRK 5.3 billion (~EUR 758 million) and was 22% higher compared to 2020. The consolidated earnings before interest, tax and depreciation (EBITDA) amounted to HRK 1.02 billion (~EUR 135 million), 4% less than in pre-pandemic 2019. The net profit in 2021 reached HRK 403 million. Indebtedness remains extremely low and stands at 0.8 x EBITDA, which is a precondition for putting an ambitious development plan into action. Potential growth areas and investment priorities have been defined, while operational excellence and business digitalisation projects have been accelerated, particularly in insurance and tourism.

"A well-diversified portfolio of businesses, preserved high investment potential, an ambitious list of prepared investments, excellent people, but also the current business and financial situation in the Group all give us reason to look to the period ahead with less uncertainty, despite the circumstances".

In short, "Adris is both operationally and financially ready to take the next step in its business and continue with its "active dividend policy"".

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