According to media writings, Atlantic Grupa opened a new logistics distribution centre worth roughly EUR 20m yesterday.

The new centre will unite all of the company’s warehouse capabilities in the Zagreb region, which were previously spread across several locations. It will also serve as the central logistics centre for the Croatian market.

Note that Atlantic Grupa is not the owner of the warehouse but instead will be using it through a long-term lease agreement, as the company’s distribution strategy does not include the construction of own warehouses. With the introduction of the new IFRS 16 standard, such as decision will lead to an increase in company’s debt. However, as Atlantic Grupa’s indebtedness is currently at a mere 1.6x net debt/EBITDA we see absolutely no reason for concern.