Producer prices of industrial products on the domestic market increased by 24.2% YoY, and 1.0% MoM in November 2022. Excluding the growth in the Energy segment, the growth on a YoY amounted to 11.1%, while on an MoM basis, it remained the same.

The Croatian Bureau of Statistics, DZS, has published the latest monthly report on the changes and developments the industrial producer prices in Croatia. In the report, we can see that the producer prices of industrial products continued growing on a YoY basis, increasing by 24.2%, while on a monthly basis, they remained flat. The Energy segment remains the main driver of this growth, and if we were to exclude it, producer prices growth would amount to 11.1% YoY and would remain stable MoM.

Looking at the growth by segments, during the month, producer prices on the domestic market in the Energy segment increased by 3% MoM, while they remained stable in the remaining categories. On a yearly basis, the largest increase was recorded in the Energy segment, which increased by 60.5%, followed by Non-durable consumer goods, with 12.9%, Durable consumer goods, by 12.5%, intermediate goods, by 10.3%, and finally, Capital goods, with a growth of 6.1%.

This would mean that despite the growth still being significant on a yearly basis, there has been a slowdown on a monthly basis, which is quite positive news. The reasons for this could be multiple; first of all, the government measures first implemented at the start of October are bearing fruit. At the same time, the main drivers of strong price growth, high gas and electricity prices, have somewhat stabilized over the last couple of months, which also contributed to the decline on a monthly basis. However, it should be noted that the base is already quite high in November 2021, and as such, the 24.2% growth on a yearly basis is still quite significant compared to those levels.

Meanwhile, looking at the producer price changes by sectors, on a YoY basis, Electricity, gas, steam and air conditioning supply increased by 73.3%, Manufacturing increased by 13.6%, while in the Mining and quarrying, they increased by 9.5%. On a monthly basis, the largest increase was recorded in Electricity, gas, steam and air conditioning supply, which grew by 7.8%, followed by Manufacturing, which increased by 0.9%, while the largest decrease was recorded in Mining and quarrying, with a decrease of 40.5% YoY.

Producer prices of industrial products (June 2016 – November 2022, %)

Source: DZS, InterCapital Research

The data on the monthly decrease, especially in the Mining and quarrying, can be correlated to the lower oil, but especially gas prices we have witnessed for the last couple of months. As the price growth of these commodities was the main driver of the producer price growth, the reduction in this category is quite positive. However, as the producer prices growth was recorded across other categories too. This means that after a year of high price pressure, it has spilled over to other segments, and as such, a decrease in the commodity prices, especially in a market as volatile as the current one, might not be enough, especially in the short term. As such, if the trend of lower energy prices continues, it might take several months until the effects are seen on the total producer prices, and by extension, consumer prices.

Valamar has announced that its Supervisory Board has approved the Business Plan for 2023, which includes capital investments of HRK 195.5m (EUR 25.95m).

At its Supervisory Board Meeting, Valamar announced the approval of the Business Plan (Budget) for 2023, which includes capital investments in the planned amount of HRK 195.5m (EUR 25.95m). Most of the approved investments relate to the continued investment in Istra Premium Camping Resort and other investment projects in product maintenance and improvement in all destinations, as well as continued investments in digitalization, energy efficiency, and sustainability projects.

The Company notes that given the importance of sustainable and socially responsible business, investments in sustainability, such as green construction, the use of renewable energy sources, and high level of energy efficiency, they will continue to pay special attention to these business segments in the planning and realization of capital investments.

We would also like to note that recently, the Supervisory Board of Imperial Riviera, a subsidiary of Valamar Riviera, also announced the approval of its Business Plan, which includes capital investments of HRK 237.8m (EUR 31.56m). The capital investments for the most part will be made into the renovation and rebranding of Valamar Tirena Hotel into a 4*, rebranding of Valamar Club Dubrovnik hotel on the Sunny Plus brand level. Investments will also be made into Valamar Lacroma Hotel and Maro World in Dubrovnik, as well as digitalization, sustainability, and improvement of products.

Valamar Riviera share price (2020 – 2022 YTD, HRK)

Source: Bloomberg, InterCapital Research

The Belex (Belgrade Stock Exchange) released its monthly report on trading activity in November 2022. The report states that the total equity turnover amounts to EUR 4.6 million, a decline of about 1.7% compared to October. This would also mean that the average daily turnover amounted to EUR 229.1k.

Looking at the companies, PP Feketić was the one that was traded the most on the exchange, with a turnover of EUR 1.45m and a share price gain of 16.11% MoM. The next company is Jedinstvo, which showed a minor increase in the share price of 5.26% MoM and had a turnover of EUR 1.09m. They are followed by Messer Tehnogas, NIS, and Dunav osiguranje, who each had a turnover of EUR 673k, EUR 558.9k, and EUR 372.1k, respectively.

Looking at the biggest gainers during the month, we have Beogradmontaža with a monthly increase of 125%, followed by Dinara with 52%, and Putevi, with an increase of 46.3%. On the other hand, Pik Pešter lost 41.2% of its value, followed by Alfa plam, which lost 30% of its value, and Impol Seval, which lost 7.4% of its value.

Finally, BELEX 15, the primary index of the Belgrade Stock Exchange, increased by 2.71% during the month, ending at 815.83 points.