Atlantic Grupa (ATGR) Q3 2024 earnings summary

Executive summary

• Achieved strong business performance in the first nine months of 2024, with significant sales and profitability growth across most business and distribution units, especially in Savoury Spreads, Beverages, and Coffee, and in key markets such as Germany, Austria, and Switzerland.

• Integration of Strauss Adriatic, acquired in March, is progressing well, with expected synergies to benefit future performance.

• Focus remains on strengthening competitiveness, innovation, profitable growth, and sustainable development, with continued investment in brands and sustainability initiatives.

Financial highlights

• Sales reached EUR 798.5 million, up 10.6% year-over-year; excluding Strauss Adriatic, growth was 7.8%.

• EBITDA rose 33.1% to EUR 97.3 million; normalized EBITDA up 29.3%.

• EBIT increased 44.1% to EUR 63.2 million; normalized EBIT up 38.5%.

• Net profit was EUR 44.7 million, up 22.3%; normalized net profit up 14.5%.

• Normalized EBITDA margin improved to 11.3% from 9.7% year-over-year.

Outlook and guidance

• Management expects to exceed EUR 1 billion in sales for 2024, approaching EUR 1.1 billion.

• Normalized EBITDA for 2024 is projected between EUR 93 million and EUR 98 million, with the largest negative impact from rising cocoa and coffee prices expected in Q4 and into 2025.

• Continued intensive capital expenditure planned, exceeding EUR 50 million, focused on logistics, production lines, and automation.