During 9M 2023, Kraš recorded revenue growth of 14% YoY, an EBITDA increase of 15%, and a net income of EUR 5.9m, a 22% increase YoY. On the other hand, in Q3 2023, Kraš recorded a revenue increase of 18% YoY, an EBITDA growth of 43%, and a net income of EUR 2.85m, a 132% increase YoY.
Firstly, Kraš’s revenue amounted to EUR 122.4m during 9M 2023, a 14% increase YoY, and EUR 43.8m during Q3 2023, an 18% increase. Of this, during 9M, the domestic market recorded EUR 69.6m of revenue, an 18% increase YoY, while the foreign markets recorded a 7.9% increase, to EUR 51m. In terms of the volume sold, Kraš sold 26,867 tonnes of products, which is 1.2%, or 326 tonnes less than last year. Of this, the domestic market recorded 0.6% higher volume sold, while the foreign markets recorded 3.2% lower volume sold.
Moving on to expenses, total operating expenses amounted to EUR 117m, a 14% increase on a 9M basis, and EUR 41m during Q3, a 16% increase YoY. Kraš noted that during the entire 2023, they had a strong focus on optimizing internal resources and rationalization of all cost segments, combined with somewhat lower prices of input products. In terms of cost categories, material expenses increased by 12% YoY to EUR 81.2m during 9M, and by 11% to EUR 27m during Q3. Employee expenses meanwhile, decreased by 5% YoY to EUR 23.9m during 9M, and 1% to EUR 8.57m in Q3. Material expenses growth is in line with the inflation rates, while employee expenses were influenced by a decrease in the number of employees (2,091 employed as of 31 September 2023, – 8% YoY). As employee expenses decreased less than this, it would imply that salary growth occurred during this period as well.
As a result, the EBITDA increased by 15% YoY, to EUR 13.5m during 9M, and by 43% YoY to EUR 5.4m during Q3. EBITDA margin did slightly improve on a 9M basis, by 0.13 p.p. to 10.99%, while it recorded a more noteworthy increase of 2.21 p.p. to 12.33% on a Q3 basis. The increase in profitability was also supported by the tourism season, as Kraš is one of the largest food producers in Croatia. Elevated inflation rates also influence the prices of Kraš’s products, which combined with an inflow of foreign tourists surely supports the Company’s profitability, which can be seen in the Q3’s EBITDA.
In terms of the net financial result, it amounted to EUR 79.4k during 9M, a 77% decrease YoY, and EUR 132.4k during Q3 2023 (Q3 2022: EUR -136.4k). Both on the side of the fin. income and fin. expenses, FX differences played the main role, leading to this decrease. Finally, the net income amounted to EUR 5.9m in 9M 2023, a 22% increase YoY, and EUR 2.85m in Q3 2023, a 132% increase YoY. As such, the net margin also improved, by 0.33 p.p. to 4.8% on a 9M basis, and by 3.2 p.p. to 6.5% on a Q3 basis.
Kraš key financials (9M 2023 vs. 9M 2022, EURm)
Source: Kraš, InterCapital Research
Kraš key financials (Q3 2023 vs. Q3 2022, EURm)
Source: Kraš, InterCapital Research
