In 9M 2022, Kraš recorded a revenue growth of 8.6% YoY, an EBITDA growth of 6.5%, and a net income of HRK 36.2m, an increase of 6.1% YoY.

The sales revenue for the 9M 2022 amounted to HRK 807.9m, which is an increase of 8.6% YoY. Sales on the domestic market amounted to HRK 443.4m, which is an increase of 10.1% YoY, while sales on the international markets amounted to HRK 357.1m, which is an increase of 6.4% YoY. This growth was recorded despite unfavorable economic trends, including inflation growth, the reduction in the disposable income of consumers, and the uncertain political situation in Eastern Europe. The largest revenue growth was recorded in the cookies and waffles segment, at 10.9%. Growth was also recorded in the segment of cacao and candy products. The total volume of sales amounted to 27,147 tonnes, which is an increase of 2% of 433 tonnes YoY. Of this, the domestic market recorded a volume growth of 1%, while in the international markets, a growth of 2.4% in volume was recorded.

Moving on to the expenses, the total operating expenses amounted to HRK 777.4m, which is an increase of 8.9% YoY. Of this, material expenses increased by 14.5%, and amounted to HRK 545.9m, while staff expenses increased by 6.1% YoY, and amounted to HRK 190.7m. As the operating expenses growth was slightly higher than revenue growth, EBITDA also experienced an increase, albeit at a slower rate. In total, it amounted to HRK 87.8m, which is an increase of 6.5% YoY.

Going further down the P&L, the financial income amounted to HRK 6.1m, which is an increase of 8.7% YoY, while the financial expenses amounted to HRK 3.5m, a decrease of 10.8%. This can tell us that in the 9M 2022, the FX differences impacted Kraš positively, leading to both higher income and lower revenue. In total, the net financial result amounted to HRK 2.6m, an increase of 54% YoY. The earnings before taxes amounted to HRK 43.9m, an increase of 5.9%, while the tax amounted to HRK 7.8m, an increase of 4.8%. This would imply an effective tax rate of 17.8%, a decrease of 0.2 p.p. Finally, the net income of the Company amounted to HRK 36.2m, an increase of 6.1% YoY.

Kraš key financials (9M 2021. vs. 9M 2022, HRKm)

Source: Kraš, InterCapital Research