Earnings Report /
Croatia

Adris Group: Fishing for a Good Summer Season

  • In Q1 2022, Adris’ sales amounted to HRK 1.1bn, an increase of 16% YoY

  • Croatia osiguranje increased its GWPs by 14% YoY, food segment grew by 25% YoY, tourism increased its sales by 117% YoY

  • The Group plans to invest HRK 430m in the tourism segment, with the majority of investment towards Panorama hotel Zagreb

Tea Pevec
Tea Pevec

Head of Research

InterCapital
3 May 2022
Published by

In Q1 2022, Adris’ sales amounted to HRK 1.1bn, an increase of 16% YoY. Croatian insurance sector grew by 8% in Q1 2022, and Croatia osiguranje increased its GWPs by 14% YoY, on the back of increases in both the life and non-life insurance segments. The food segment grew by 25% YoY, while the tourism segment experienced an increase in sales of 117% YoY, reaching 89% of 2019’s level. In total, the Group recorded a revenue of HRK 1.25bn and a net profit of HRK 12m.

Tourism segment: The Company sold 104k units in Q1 2022, or 82% of the units sold in 2019. Total revenue amounted to HRK 100m, a 2.5x increase YoY. EBITDA remains negative at HRK -26m, with no COVID-19 support as compared to the last year. Net profit remains at roughly the same level (HRK 12m). Looking forward, booking shows significant improvement YoY, both in the main summer season and post-season. The Group plans to invest HRK 430m in this segment, with the majority of this investment going into the reconstruction and refurbishment of the Panorama hotel in Zagreb. Out of the aforementioned amount, HRK 100m will also be invested towards improving the quality of camps.

Food segment: Cromaris continued its strong performance recorded in 2021, recording sales revenue of HRK 157m in Q1 2022, up 25% YoY. Cromaris sold 3,160 tons of fish, up 20% YoY. Foreign markets remain the largest focus, with 92% of revenue achieved in them.

Insurance segment: Croatian insurance market grew by 8% in Q1 2022. Croatia osiguranje achieved an increase in GWPs of 14%, reaching HRK 957m. Of that, Non-life GWPs grew by 15.1%, while Life GWPs grew by 21.9% YoY. Net premiums earned (including subsidiaries) increased by 16% and amounted to HRK 1.14bn. The claims and benefits ratio increased by 0.4 p.p. to 58.2%, while the combined ratio grew by 0.2 p.p. to 97.6%. In total, Croatia osiguranje’s net income to majority increased by 4.4% and amounted to HRK 113.3m.

With the continual growth in the Food segment, as well as Croatia osiguranje’s leadership position in the Croatian insurance market, these two segments are well-positioned to continue their expansion. When it comes to the Tourism segment, Q3 is the quarter when most of the profit is made. With high expectations for the 2022 summer season and the investments Adris is making into its assets, the current growth should continue. Adris’s business is not directly exposed to the Russia-Ukraine crisis, but inflation and rising interest rates continue to influence the equity market. Even so, strong results in the hospitality segment are expected this year.