The sale is in line with Atlantic’s strategy of divesting non-core business operations and focusing on key categories and brands, as well as targeted internationalization of its portfolio.

Atlantic Group published an announcement on the Zagreb Stock Exchange announcing that the company has signed a SPA with PharmaS Group concerning the company Fidifarm, owner of Croatia’s leading food supplements brand – Dietpharm.

In addition to Fidifarm’s entire portfolio and human resources pool, PharmaS will also acquire Multivita, a regional food supplement brand owned by Atlantic Grupa, whose product Multivita Vitamin C is the leading effervescent vitamin C on the Russian market.

Fidifarm’s sales income in 2018 amounted to HRK 70 million, while sales income for Multivita amounted to about HRK 30 million in the same period. The company notes that the transaction is expected to be closed by the end of the year.

The aforementioned sale of is in line with Atlantic’s strategy of divesting non-core business operations and focusing on key categories and brands, as well as targeted internationalization of its portfolio.

As a reminder, in April of this year, Atlantic Group finalized the divestment of the last portion of the sports and functional food unit by concluding the sale agreement for the Tripoint company which includes the Multipower, Champ and Multaben brands. The transaction resulted in a one-off loss on sale in the amount of HRK 3.3m.

In 9m 2019, Optima Telekom recorded flat sales, increase in EBITDA of 10.7% and a net profit of HRK 5.59m.

In the first nine months of 2019, Optima Telekom observed flat sales of HRK 398.7m. There was a slight increase in total telecommunications services revenues in the first nine months of 2019 of 0.2% YoY. Total revenue increase was offset by revenue decline from public voice service (10.8%), which has been a global trend for some time now.

The effect of lower PVS revenues was decreased by increased interconnection revenues of 7.5%, which is a consequence of the increased volume of low profit international transit, as well as an additional revenue increase from equipment and ICT services sales.

ICT services revenues record a constant growth. Also, there is a slight growth in multimedia revenue of 3.0%, which is alongside Internet one of the two mediums in the focus of the company business operations.

Operating expenses amounted to HRK 373.2m, representing a decrease of -4.12% (HRK 16m), which could be attributed to lower other external costs item. As a result, EBITDA before special items after leases amounts to HRK 91.4m, representing an increase of 10.7% (HRK +8.8m).

Going further down the P&L, operating profit amounted to HRK 28.95m, which represents a sharp increase of 89%. For the most part, this is a result of the business operations cost optimization.

In 9m 2019, Optima Telekom recorded a net profit of HRK 5.4m, compared to a net loss of HRK -6.5m from the same period last year.

CAPEX in 9m of 2019 amounted to HRK 59.6m. Out of that, HRK 19.9m was invested into the development of user equipment for providing services to residential and business customers. Investments into development of optical fiber network, access network and core network amount to HRK 12.8m, while HRK 26.7m was invested into expansion of customer services and IT systems.

In 9m 2019, the company recorded a decrease in sales of 6.4% YoY, increase in EBITDA of 31.1% and a net loss of HRK -6.4m.

As Atlantska Plovidba published their 3Q 2019 report, we are bringing you key takes from it. According to the report, in the first nine months of 2019, the company transported 5.6m tons of cargo. Of that, coal makes up for roughly two thirds, followed by minor bulk and iron ore.

Freight Carried in 9m 2019 (%)

Currently, Atlantska Plovidba operates with 12 vessels, of which 5 are classified as Panamax, 5 as Supramax and 2 as Handy. Of those, 6 vessels are employed on a long-term lease (> 1 year), while 6 are employed on short term lease (< 1 year). In the mentioned period, the fleet utilization rate amounted to 98.48%.

According to the company reports, average daily freight rate in 9m 2019 amounted to slightly above USD 10,500 per day, while BDI freight rate amounted to roughly USD 10,000 per day.

BDI Index (2015 – 29.10.2019)

In the first nine months of 2019, the company observed a decrease in sales of 6.1%, amounting to HRK 224.4m. The company does not provide much information about the Q3 results, but one can notice that during the mentioned period, both Supramax and Panamax spot earnings were lower (most of the time) compared to the same period last year. In Q3 solely, Panamax and Supramax earnings picked up and surpassed last years figures, which can be seen in Atlantska Plovidba’s Q3 sales, which recorded an increase of 2% YoY.

Operating expenses observed a decrease of 7.3% YoY, amounting to HRK 211.7m. The aforementioned decrease could be attributed to lower material costs by HRK 46.95m, which were partially offset by higher amortization (+HRK 23.2m).

Consequently, the company observed a higher EBITDA of 31.1% amounting to HRK 110m, while EBIT amounted to HRK 46.8m (+6.6% YoY).

Going further down the P&L, in 9m 2019, the company recorded a net financial loss of HRK -53.2m which represents an increase in loss of HRK 13.95m. The mentioned increase could be attributed to higher interest payments in 9m 2019.

As a result of, Atlantska Plovidba observed a net loss of HRK -6.4m, compared to HRK 4.7m in the same period last year.

Atlantska Plovidba Performance (9m 2018 vs 9m 2019) (HRK m)

In the first nine months of 2019, the Group observed an increase in sales of 13% YoY, a decrease in EBIT of 8% and an increase in net income of 3%.

As OMV Petrom published their nine-month 2019 results, we are bringing you key takes from it. According to the report, sales amounted to RON 18.19bn, representing an increase of 13% YoY, while solely in Q3 they observed an increase of 10% YoY. The mentioned increase can be attributed to the higher sales volumes for petroleum products, higher sales volumes and prices for natural gas, and higher prices for electricity. In contrast, lower selling prices for petroleum products partially offset the above-mentioned increases. Of the Q3 results, Downstream Oil represented 74% of total consolidated sales, while Downstream Gas accounted for 24% and Upstream for 2%.

In the 9m, the Clean CCS Operating Result amounted to RON 3.45bn, representing an increase of 2% YoY. However, in solely Q3, it amounted to RON 1.22bn, representing a sharp decrease of 27% YoY. Such a decrease could be attributed to the unfavorable oil price environment.

Clean Operating Result Upstream amounted to RON 2.14bn, representing a decrease of 12%, while in Q3 it recorded a sharp decrease of 43% YoY. Such a decrease was mainly driven by lower oil prices and hydrocarbon volumes.

Clean CCS Operating Result Downstream amounted to RON 1.33bn, representing an increase of 13%, while the result is flat when observing solely Q3. Of that, in Q3 Clean CCS Operating Result Downstream Oil was 7% higher, due to the increased demand for refined products and excellent operational performance. This was offset by a poor result of the Clean Operating Result Downstream Gas which recorded a decrease of 40% (amounted to RON 57 m).

In the first nine months, the Operating Result observed a decrease of 8% YoY, amounting to RON 3.2bn, while on a Q3 basis it recorded a sharp decrease of 44%. Such result was influenced mainly by unfavorable oil prices and the costs estimated for future soil remediation in relation to Arpechim refinery.

As a result of all of the above-mentioned, in Q3 net profit observed a decrease of 44% YoY, however on a 9m basis net profit still observed an increase of 3% YoY, amounting to RON 2.76bn.

OMV Petrom Performance (9m 2019 vs 9m 2018) (RON bn)

The CEO points out that the Group is facing problems which include the inability to finance further production of wagons and the lack of equity in the company.

Đuro Đaković published an announcement on the Zagreb Stock Exchange stating that, Marko Bogdanović stepped down from the CEO position.   

In his explanation, the CEO pointed out that Đuro Đaković is currently facing challenges due to two key problem:

• The inability to finance further production of wagons (for export)
• The lack of equity in the company

The CEO states that the almost a complete restructuring has been carried out and that the Group operates only in sustainable programs, while the unsustainable ones have been closed. He further states that he considers that despite the efforts of the Management Board and the progress made in the Group’s results, further improvement is not possible without the results of a complete financial restructuring with an emphasis on strengthening the Group’s capital.

Besides that, Đuro Đaković published another announcement stating that the accounts of the Group, as well as the accounts of its related companies were blocked yesterday.