Earnings Report /
Croatia

Ready For Take-off

  • In H1 2022, Adris’ sales increased to HRK 2.69bn, representing a growth of 20.3% YoY

  • Adris sold 725k units in H1 2022, representing an increase of 90% YoY, reaching 96% of 2019’s level

  • The Croatian insurance sector grew by 6% YoY in H1 2022, while Croatia osiguranje recorded GWP growth of 7% YoY

Tea Pevec
Tea Pevec

Head of Research

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InterCapital
2 August 2022
Published byInterCapital

In H1 2022, Adris’ sales increased to HRK 2.69bn, representing a growth of 20.3% YoY. The growth was recorded across all business segments. Croatia osiguranje increased its GWPs by 7%, to HRK 1.81bn. The tourism segment also recorded significant growth, with sales increasing by 113% YoY, reaching 96% of 2019’s level. The food segment also recorded noteworthy growth, increasing by 32% YoY. Moreover, Q2 2022 contributed significantly to this growth, again, across all business lines. In total, H2 2022 net profit amounted to HRK 157m, an increase of 191% YoY.

Tourism segment: Adris sold 725k units in H1 2022, representing an increase of 90% YoY, reaching 96% of 2019’s level. Sales amounted to HRK 631m, an increase of 113% YoY, and 5% more than in 2019. EBITDA amounted to HRK 131m, representing an increase of 179% YoY, which is especially noteworthy considering Adris received HRK 57m in pandemic-related support in 2021. EBITDA is at 75% of the H1 2019 level. Net loss also improved, decreasing by 77% to HRK -26m. Furthermore, if we were to look at Q2 2022 results only, net profit amounted to HRK 81m (2020: HRK -8m).

Insurance segment: The Croatian insurance sector grew by 6% YoY in H1 2022, while Croatia osiguranje recorded GWP growth of 7% YoY, totaling HRK 1.81bn. Consolidated GWPs (including subsidiaries) amounted to 2.81bn, an increase of 9% YoY. The growth of GWPs was driven by the increase in Non-life GWPs (+15.9%), while Life GWPs decreased (-24.5%). The claims and benefits ratio decreased by 2.1 p.p. to 59.4%, the cost ratio increased by 3.2 p.p., while the combined ratio amounted to 102.4%, an increase of 1 p.p. YoY.

Food segment: In H1 2022, Cromaris sold 6.97 tonnes of fish, representing a 26% increase YoY. In export markets (89% of total), the increase amounted to 29%, leading to a sales increase of 32%, amounting to HRK 360m. EBITDA increased by 31% YoY, while Cromaris’s net profit amounted to HRK 10.8m.

Adris continues to record growth across all business segments, with Q2 continuing this path, especially in the tourism segment. The current trends are pointing toward a strong summer season, steady growth in the insurance sector, and positive opportunities in the food segment. The current inflationary pressures on material and energy prices as well as the expected interest rate hikes could harm the Group’s profitability, but this is the environment that currently, every Company must face, and Adris is proving that despite these challenges, they can continue their growth trajectory.