The tourism-insurance-food conglomerate Adris Group published they are ready for another big share-buyback programme. Adris targets up to 1,000,000 ordinary shares ADRSRA (10.40% of their total number) and up to 200,000 preferred share ADRSPA (2.95% of their total number). Max price for both share types are about 9% above Friday close. Bids will be open from 18 February until 25 February.
Technical details
REGULAR
SHARES
Bloomberg: ADRSRA CZ
Maximum number: 1,000,000
Percentage of total issue: 10.40%
Maximum price: HRK 530 per share (9% above Friday close)
PREFERRED
SHARES
Bloomberg: ADRSPA CZ
Maximum number: 200,000
Percentage of total issue: 2.95%
Maximum price: HRK 465 per share (9% above Friday close)
Period:
accepting offers between 18 – 25 February
Minimum size: HRK 2m per broker, block transaction
Pricing: single price for each share type
Official invitation to submit offers: LINK (Croatian only)
Unofficial English translation: LINK
About Adris
Adris Group is a conglomerate and one of the largest listed companies on the Zagreb Stock Exchange with a market cap of EUR 1.1bn. Their three main business arms include:
- tourism – represented by two pillars. Maistra (MAISRA CZ), the third largest tourism company in Croatia, is going through a strong CAPEX cycle targeted at creating top-notch accommodation and 5-star hotels. Last year Adris acquired HUP-Zagreb (delisted), a mainly city-hotel owner and operator. With this acquisition, Adris is expected to significantly decrease the seasonality of the business and further enhance its leading position in the Croatian tourism sector.
- insurance – represented by Croatia Osiguranje (CROSRA CZ), the largest insurer in Croatia. Adris acquired the majority stake from the Government back in 2014, and CROS was at the time a low-profitable insurer. Adris began a strong repositioning of the company, halting the loss of market share and bringing ROE above 10%.
- food – Cromaris is the smallest of the mentioned companies, but it has been growing strongly for years. They breed and sell fish, and are positioning themselves among top-branded producers.
Recent Results
Consolidated operating revenues were up 12% in 2018, to HRK 5.6bn, and EBIT increased by 18% (up by HRK 60m). This was offset by a HRK 153m negative movement in net financial revenues, but the bottom line (+13% to HRK 423m) is still up due to tax incentives (HRK 143m taxes less than in 2017). We guess this is related to the tourism companies and their investments, but we will know more once all individual reports are published. At the end of December, the Group still held a large net cash position (HRK 2.5bn or EUR 333m), down from HRK 4.3m a year earlier (mostly attributable to the acquisition of HUP-Zagreb).
Maistra surprised with a decreased EBITDA (-1% YoY to HRK 396m), especially after posting a 10% increase in 9M 2018. Management comments are not yet published so we can only guess the decrease has to do with the large CAPEX cycle (Maistra is close to launching their flagship hotel Park). EBT is down by HRK 17m or 9%, but the bottom line edged up 73% to HRK 281m (due to the tax incentives). HUP-Zagreb will probably not publish separately as they have been delisted, but we note that their 9M results showed a 13% increase in revenue, 14% in EBITDA and a bottom line of HRK 96m (+25%).
Croatia Osiguranje is expected to show results following the Supervisory Board meeting (scheduled on 21 Feb). In 9M 2018 they reported GWP up 8.5% and a net income of HRK 332m (+51%).
Cromaris’ results might be touch upon within Adris’ annual report. In 9M 2018 they reported revenue up 14% and net profit of HRK 21m (+31%).
We will publish a more detailed Company Note once all separate reports are published.
In 2018, MedLife’s operating revenue increased by 27.5% YoY, EBITDA increased by 22.4% and net income increased by 88.1%.
As MedLife published their 2018 preliminary results, we are bringing you some key takes from the report. According to it, in 2018, MedLife observed an increase in sales of 27.5% YoY, amounting to RON 794.5m. This increase could be attributed to a significant growth in almost all of the Group’s business lines, led on a percentage basis by Clinics (29%), Hospitals (21%), Corporate (21%) and Laboratories (17%), as well as the impact of the acquisitions completed by the Group in 2017 and 2018. Also, other operating revenues observed an increase of RON 2.3m, amounting to RON 9.8m.
MedLife Operating Revenue (2015 – 2018) (RON m)
Further, operating revenue amounted to RON 804.4m, which is an increase of 27.5% YoY.
The Group recorded operating expenses of RON 766.5m in 2018, representing an increase of 28.6%. The rise could be attributed mainly to overall business increase.
When observing MedLife’s EBITDA, it amounted to 95.4m, which is an increase of 22.4% YoY. Note that the increase was impacted by higher depreciation (+33.6%), amounting to RON 57.5m. The Group’s EBITDA margin amounted to 12%.
Next, the Group recorded a net income of RON 16.4m, which is an increase of 88.1%. This increase could be attributed to both an increase in EBIT (+8.5%) and a decrease in
In 2018,