In Q1 2022, Kraš recorded an increase in sales of 6.6% YoY, an increase in EBITDA of 25.5%, and an increase in net profit of 75.4% YoY.

In Q1 2022, Kraš recorded an increase in sales of 6.6% YoY, amounting to HRK 249.6m. On the domestic market, Kraš recorded an increase in sales of 14.7%, amounting to HRK 140.4m. Meanwhile, in the foreign markets, the company reported sales of HRK 109.2m, representing a decrease of 2.2% YoY. The biggest driver of sales growth was in flour products (+14.3% YoY) in each production capacity (Zagreb, Osijek, and Prijedor). Also, solid results were achieved in cocoa products and candy products. Group increased its business activity through both higher volume sales (+6% YoY) and higher prices.

Operating expenses also noted an increase of 6.4% YoY, amounting to HRK 240.8m. The highest impact on operating cost growth was reported in the change in the value of inventories, which reported an increase from HRK -28.6m to -11.8m. Also, staff costs increased by 3.6% YoY, amounting to HRK 61.4m. This growth was partly compensated by a decrease in material cost which amounted to 6.9% or HRK 11.7m. As a result of the above-mentioned, EBITDA increased by 25.5% to HRK 28.5m. Such a result shows an improvement of EBITDA margin by 1.7 p.p. to 11.4%.

Going further down the P&L, operating profit increased by 55%, reaching HRK 14.1m. This puts the EBIT margin at 5.6% (+1.8 p.p. YoY). The slightly higher positive net financial result of HRK 1.5m (compared to HRK 1.3m in Q1 2021) improved the company’s earnings before tax and improved EBIT YoY increase. A better net financial position occurred as the company reported a higher FX gain this year of HRK 2.9m.

In Q1 2022, Kraš recorded an increase in net profit by 75.4%, to HRK 12.9m. An increase in net profit also resulted in a moderately higher profit margin of 5.2% (+2 p.p. YoY).
Kraš Q1 2022 Key Financials [HRK m]

In April 2022, tourist arrivals amounted to 867.6k, an increase of c. 5x YoY, while tourist overnight stays amounted to 2,353k, an almost 3.5x increase YoY.

The Croatian Tourist Board has published the latest report on the changes in the tourism industry in April 2022. In it, we can see that during the month, the total tourist arrivals and overnight increased c. 5x, as compared to April 2021. This increase continues the trend that was seen during the last several quarters, as the tourism industry had a strong rebound, owing to good vaccination rates, as well as lenient travel and restriction measures. With the Croatian Government’s recent announcement of the lifting of most measures regarding the pandemic, as well as the lifting of travel restrictions to EU countries, (effectively started 9 April 2022), this trend will surely continue forward and 2022 is setting itself up for a strong tourism season.

Since this measure is new, current bookings still do not reflect the benefits it will give, but this situation will surely change as the summer season approaches.

Meanwhile, looking back to April 2022, the total tourist arrivals amounted to 867.6k, an increase of c. 2.5x YoY. Out of that, 672.5k were foreign tourists (or 77.5%), representing an increase of almost 5x compared to April 2021. At the same time, domestic tourist nights amounted to 195.1k, an increase of c. 3.5x YoY.

Moving on to the tourist nights, they amounted to 2,822.8k in April 2022. Out of that number, 2,353.9k (or 84%) were foreign tourists, representing an increase of 3.5x YoY. Domestic tourist nights amounted to 469.9k, an increase of 2.3x YoY. This would also mean that the average stay per person increased from 3 nights per person to 3.25 nights per person MoM, a turnaround from an ongoing decreasing trend that could be attributed to month when Easter holiday was realized and actually tourism low season started. It was also due to the looser movement restrictions allowing tourists to move more and visit more places.

In April 2022, domestic and German tourists had the largest share of tourist nights, accounting for 17% each, followed by Slovenian tourists with 15%, and Austrian tourists with 10%. Looking at the most visited counties, Istra had the most tourist nights with 959.1k, followed by Kvarner with 446.9k, and Splitsko-dalmatinska county with 396.8k.

In total, from the start of 2022 til the end of April, arrivals amounted to 1,61m, an increase of 170% YoY, while total tourist nights amounted to 5m, an increase of 150% YoY.