Atlantic Grupa (ATGR) Q2 2024 earnings summary

Executive summary

• Achieved strong sales and profitability growth in H1 2024, with sales up 11.5% year-over-year to EUR 512.5 million and net profit up 16.5% to EUR 24.4 million.

• Growth driven by Coffee, Beverages, and Savoury Spreads units, and robust performance in Croatia, North Macedonia, and key European markets.

• Integration of Strauss Adriatic completed, contributing to coffee segment growth and overall results.

• Continued focus on sustainability, innovation, and capital expenditure, with new product launches and ESG recognitions.

Financial highlights

• Sales reached EUR 512.5 million, up 11.5% year-over-year; excluding Strauss Adriatic, growth was 8.4%.

• EBITDA rose 29.2% to EUR 57.4 million; EBIT up 39.7% to EUR 35.0 million; net profit up 16.5% to EUR 24.4 million.

• Normalized EBITDA margin improved by 131 bp to 10.3%; net profit margin at 4.8%.

• Free cash flow was negative at EUR -8.4 million due to higher capital expenditure.

• Dividend of EUR 1.20 per share (EUR 15.9 million total) approved, over 50% of consolidated net profit.

Outlook and guidance

• Management expects to exceed EUR 1.05 billion in sales for 2024.

• Mid-single-digit growth in normalized EBITDA anticipated, with margin at last year's level.

• Profitability to face pressure from higher cocoa and coffee prices, increased salaries, and logistics costs, especially in H2.

• Capital investments planned at approximately EUR 50 million, focused on logistics and production automation.