Yesterday, Atlantic Grupa announced that it signed a SPA for the disposal of water and soft-drinks production site in Serbia, together with all its assets, employees and mineral water brand registered on the Serbian market.

Atlantic Grupa has announced the signing of a sale and purchase agreement for the sale of Palanački kiseljak production site in Smederevska Palanka, where in addition to the water brand “Karađorđe”, “Cockta” and “Jupi” are being produced. The buyer is a limited liability company, Vik Pro Univerzal, which has a lot of experience in the segment of water and soft drinks. With the signing of this agreement, it will continue the strategic development of its business.

The subject of the sale and purchase agreement is the whole production site with all its assets, including the traditional mineral water brand on the Serbian market, i.e. Karađorđe, and the new owner will also take over the Palanački kiseljak’s employees. Atlantic Grupa primarily used the site for the production and bottling of products for the Cocta brand, something which they will continue doing in a service form.

The sale of this production site is a part of the process of disinvestment of smaller and non-core businesses, which is in line with Atlantic’s corporate strategy. In this time of pressure on margins of F&B producers, Atlantic is continuing its strategy of divestment of non-core which will improve its standing and is recommendable.

By looking at the performance of the F&B sector through CROBEXnutris we can see that it is down 3.5% YTD, but from 1 Jan 2018 it is up 54%. Atlantic Grupa is down 4.8% YTD, but in a period from 1 Jan 2018 its return without dividend is 85%. Considering that this index consists of four companies, with each company having the same weight of 25% in the index, the movements of Atlantic Grupa is highly correlated with the index’s performance. As we expect to see a deterioration of margins of F&B companies in 2Q, driven by the surge in prices of raw materials, packaging, services, and energy expenses, there could be some more deterioration of the Company’s share price, and as such, the index’s performance. This is especially true if we take into account the fact that an increase in prices of end-products could not be completely offset by inflation of input products.

However, one should also consider the fact that a strong summer season (which all current estimates are pointing to) also has a positive influence on the FMCG industry, which could have a strong impact on the performance of the food companies.

CROBEXnutris and Atlantic Grupa Performance (2018 – today, %)

Today, we decided to present you with a brief overview of SBITOP constituents’ free float.

In our analysis we considered free float to equal all individual shareholdings lower than 5%, while pension funds and UCITS funds were considered as free float regardless of their shareholding percentage.

Free Float of SBITOP Constituents (%)

Among the SBITOP constituents, five of them have a free float higher than 50%, while the other five constituents are still mostly held by a small group of majority shareholders. Of the constituents, Salus and Krka have by far the highest free float amounting to 84.1% and 76.9%, respectively. On the other hand, Luka Koper, Telekom Slovenije, Sava Re and Triglav have less than 50% of free float. Luka Koper and Telekom Slovenije have a free float of 37.9% and 37.5%, respectively. They are followed by Sava Re with a free float of 37.3%, with Triglav being the last on the list with free float amounting to 30.7%.

Comparing both medians and mean of free float of CROBEX and SBITOP constituents, as main indices on ZSE and LJSE, a similar situation occurs. Free float of SBITOP constituents median amounts to 50.4%, while CROBEX median for the same parameter amounts to 49%. Meanwhile, the mean for SBITOP constituents amounts to 52%, while the mean for CROBEX amounts to a slightly lower number of 49.4%. The important thing to stress out is that the data range for CROBEX constituents is wider and has a higher deviation than the data range for SBITOP constituents, which shouldn’t come as a surprise as CROBEX has more constituents within the index itself.

We should emphasize that the Prime market is the most demanding market on the Ljubljana Stock Exchange regarding the requirements set before the issuer. It is worth noting that it requires the issuer to fulfill additional liquidity criteria, which will result in greater volume, a higher number of trades and therefore reducing “hidden” costs (like high bid-ask spread resulting from illiquidity).

At the price before the proposal, this would amount to a DY of 3.4%. The ex-date is set for 30 June 2022.

At the GSM meeting held yesterday, 28 June 2022, Ericsson NT shareholders voted for the approval of the distribution of profit. According to the resolutions released by the Company, the 2021 net profit of HRK 115.2m will be transferred into retained earnings, and HRK 10m from the 2020 retained earnings will be transferred into reserves for treasury shares. Finally, out of the 2020 and 2021 retained earnings, a dividend of HRK 64 per share will be paid out, representing a dividend yield of 3.4%.

The ex-date for the dividend is set for 30 June 2022, while the payment date is set for 22 July 2022. Below we provide you with the historical overview of the dividends per share and dividend yields of the Company.

Dividend per share (2013 – 2022, HRK) Dividend Yield (2013 – 2022, %)