Indebtedness of Croatian & Slovenian Companies

For this week’s blog, we decided to bring you a brief overview of the indebtedness and capital structure of CROBEX and SBITOP components.

For Croatian companies, we calculated their net financial debt/T12 EBITDA, as all CROBEX components published their Q1 2019 reports. On the other hand, since some SBITOP components did not yet publish their Q1 2019 reports, we decided to calculate their indebtedness based on FY 2018 net financial debt and EBITDA.  

Besides that, we are bringing you the capital structure of the mentioned companies. As the absolute values can hardly be compared due to different sizes of the companies, we used the ratio which measures a company’s financial leverage, which is calculated by dividing a company’s financial liabilities by the sum of the stockholders’ equity and financial liabilities.

Note that we purposely excluded listed financial institutions from this analysis.


When looking at CROBEX members, Đuro Đakovic has the highest net debt/T12 EBITDA 38.34, showing clear signs of a company operating with too much debt, as the company’s debt by far surpasses their shareholder’s equity. When observing the company’s capital structure, Đuro Đaković operates with 88% debt and 12% equity. On the flip side, 4 companies, HT, Končar, Adris and Ericsson NT, operate with negative net debt, meaning that their cash balance exceeds their financial debt. The capital structure of these companies almost completely consists of equity, which can be observed in the graph below. On the other hand, Optima Telekom currently operates on 100% debt. This could be attributed to a sharp decrease in the company’s Equity from HRK 45.9m in 2016 to HRK 0.4m, which was mostly a result of the company recording net losses in the past years. Note that OT’s net debt/T12 EBITDA stands at 1.97.

It is also interesting to see how much additional debt these companies could take to reach 3xEBITDA which is considered as a moderate and sustainable level of indebtedness in the region. It is important to point out that companies with higher net debt of the 3xEBITDA are not necessarily too indebted as not all of them are equal and their industries differ (and the other way around-certain industries are not prone to hold any leverage).

Besides the above-mentioned 4 companies which operate with a negative net financial debt, 6 CROBEX components operate with a net debt/T12 EBITDA lower than 3x (AD Plastik, Jadran, Arena Hospitality, Atlantic Group, Optima Telekom and Podravka).

Of all of the observed companies, HT could take as much as HRK 12.5bn to reach 3x EBITDA, which is by far the most any CROBEX company could. Adris follows with HRK 3.9bn, Končar with 1.1bn. On the flip side, 5 companies would have to reduce debt in order to reach 3x EBITDA, which can be observed in the table below.

Net Debt/T12 EBITDA of CROBEX Components
Capital Structure of CROBEX Components


Potential Additional Debt (HRK m) to Reach 3x EBITDA
wdt_ID Company HRK m
1 HT 12.517,60
2 Adris 3.900,10
3 Končar 1.092,20
4 Podravka 650,70
5 Ericsson NT 583,00
6 Atlantic 575,90
7 Arena Hospitality 188,60
8 OT 140,70
9 Ad Plastik 91,20
10 Jadran 6,50


When observing the SBITOP components, one can observe that Intereuropa operates with the highest net debt/EBITDA of 4.71. It is worth mentioning that the company has been successfully deleveraging, as they reduced their net financial debt from EUR 80.4m in 2015 to EUR 60.2m in 2018.  As of December 2018, the company operates with 63% equity and 37% debt.

On the flip side, Cinkarna Celje and Krka are operating with a negative net financial debt, meaning that their cash balance exceeds their financial debt. As these companies operate with virtually no debt, their capital structure consists of 100% equity.

Besides the above-mentioned 2 companies which operate with a negative net financial debt, 4 SBITOP components operate with a net debt/EBITDA lower than 3x (KD Group, Telekom Slovenije, Petrol and Luka Koper).

When observing how much additional debt could each company take to reach 3x EBITDA, Krka could take as much as EUR 1.15bn, which is by far the most any SBITOP company could. Petrol and Telekom Slovenije follow with EUR 220.8m, and EUR 204.1m, respectively.  On the flip side, 2 companies, Unior and Intereuropa would have to decrease their debt to reach 3x EBITDA, which can be observed in the table below.   

Net Debt/EBITDA of SBITOP Components

Capital Structure of SBITOP Components

Potential additional debt (EUR m) to reach 3x EBITDA
wdt_ID Company EUR m
1 Krka 1.152,40
2 Petrol 220,80
3 Telekom Slovenije 204,10
4 Luka Koper 297,20
5 Cinkarna Celje 179,40
6 Kd Group 17,00
7 Unior -20,10
8 Intereuropa -21,90
Dino Durrigl
Category : Blog

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