Luka Koper published their H1 2020 results yesterday, showing an 11% YoY revenue decrease, 29% YoY decrease in EBITDA and a 40% YoY decrease in net profit which amounted to EUR 15.1m.

In H1 2020 Luka Koper’s sales amounted to EUR 106.8m, representing an 11% YoY decrease. The decrease came as a result of a lower volume of throughput which fell 15% YoY. Lower market activity mainly resulted from the epidemic COVID-19 and the following slowdown in economic activity. Furthermore, the decline in bulk and bulk cargo throughput was further influenced by European Union legislation, which provides for full decarbonisation in the coming years, and the introduction of environmental charges for CO2 emissions.

Maritime Throughput in Tons

EBITDA fell 29% YoY, amounting to EUR 31.2m, mostly due to the decrease in revenue. However, one should also highlight higher labour costs, which increased by 8% or EUR 2.9m in 2020. Finally, as a result of the abovementioned, the Group’s net profit decreased by 40% YoY to EUR 15.1m.

In H1 2020 CAPEX was below plan, amounting to EUR 16m.  Investments were mainly allocated to the construction of the parking garage, construction of a new RO-RO berth, construction of railway tracks and the purchase of a new transhipment machinery.

Turning our attention to the balance sheet, in H1 2020 Luka Koper posted a net debt/EBITDA ratio of 0.1x, indicating that the company remains in a stable financial situation despite the decreasing performance.

Luka Koper Key Financials (EUR 000)

By looking at the latest announcement from the Tax Administration of the Republic of Croatia, in the 3rd week of August spending in Croatia was down 19% YoY, while in the 2nd week of August it was lower for 13% compared to the same week last year.

By looking at the latest announcement from the Tax Administration of the Republic of Croatia, being tracked for Corona pandemic purposes, we can conclude that the tourist season has reached its peak. In the 3rd week of August spending in Croatia was down 19% YoY, while in the 2nd week of August it was lower for 13% compared to the same week last year. Also, 3rd week August 2020 was worse than the 2nd week of August in 2020 but only by 6%. For comparison purposes in the same week in 2019 spending was up for 1% compared to the week before. This can be explained by the fact that Italy and Austria have put Croatia on the ‘red lists’ of epidemiological unsafe countries so many tourists decided to return home. Italy has put Croatia on the red list from 13 August 2020 and Austria from 17 August 2020. Slovenia followed suit but from Friday, 21 August 2020 – almost the end of the 3rd week of August.

When we look at spending in all activities for the last 6M ending with 3rd week of August spending was 18% lower YoY. This statistics is according to the national classification of activities 2007. Looking at the activity of wholesale and retail trade, spending was down only 10% YoY, while in hospitality sector (activity of providing accommodation and food service) spending was down 47% YoY. The latter figure for the 3rd week of August stands at -35% YoY.

Adris released a statement in which they announced that their food company Cromaris recorded a 15% YoY increase in sales in July.

Adris announced that their fish farming and processing company Cromaris increased their sales volume by 15% YoY in July to record-high 1,063 tonnes of fresh fish, following a 20% rise in June.

The main driver of the growth was the Italian market which posted a 50% growth over the past two months. This was preceded by a strong increase in Cromaris’s market share in Italy which increased by more than 40% this year. Cromaris in Italy, which is also the world’s largest market for sea bass and gilthead seabream, holds 8.3% of the volume and more than 11% of the value share. Meanwhile, note that the company’s sales in Austria, Germany, Switzerland and Hungary, among others, have also been on the rise in 2020.

Adris also noted that in 2019, Cromaris held 3.2% of the global market of Mediterranean fish. Considering current trends, that market share is expected to rise in 2020.