Croatia's Adris Grupa 9-mo cons net profit plummets after sale of tobacco business

Croatia's Adris Grupa 9-mo cons net profit plummets after sale of tobacco business Author: Adris Grupa. License: All rights reserved.

ZAGREB (Croatia), October 25 (SeeNews) - Croatian diversified conglomerate Adris Grupa [ZSE:ADRS-R-A] said on Tuesday its nine-month consolidated net profit plummeted to 569.7 million kuna ($82.6 million/76 million euro) from 2.8 billion kuna last year, when the company sold its tobacco business.

The group's operating income shrank 24.3% on the year to 3.7 billion kuna through September, while operating expenses fell to 3.1 billion kuna from 5.2 billion kuna, Adris said in a filing with the Zagreb bourse.

In October last year, British American Tobacco (BAT) said it had completed the takeover of Adris Grupa's tobacco making unit, TDR, following a sale agreement signed in July. The transaction value amounted to 505 million euro ($549.1 million) after the deduction of TDR's liabilities.

Adria's tourism business saw a slight improvement in the nine months ended September as hotel operator Maistra recorded a 2% rise in overnight stays. However, an increase in the average price of an overnight stay boosted operating income by 9%. EBITDA jumped 14% on the year to 413 million kuna in the review period.

So far in 2016, Adris has invested over 400 million kuna into expanding and modernising its tourism offer.

Adris Grupa's fish farming and processing unit Cromaris boosted its sales by an annual 4% in the first nine months, with exports up 8%. At the moment Cromaris is generating 75% of its sales abroad. Its revenues grew by 9% through September and net profit rose to 11 million kuna, up from last year's 1.5 million kuna.

The group's insurance arm, Croatia Osiguranje, saw a net profit of 158 million kuna in the first nine months, up 49% on the year. The insurer recorded an increase in consolidated gross written premiums of 2% to 2.4 billion kuna. The company had a 36.6% share of the non-life insurance market in Croatia and a 18.6% share of the life insurance market. It remains the leader on Croatia's insurance market with an overall market share of 30.8%, flat from last year.

Last November, Adris Grupa said it intends to list abroad in 2018 and plans to invest over 4 billion kuna in 2016-2018 in order to increase the valuation of its existing operations.

(1 euro=7.50347 kuna)

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