Under very uncertain business circumstances, and according to unaudited consolidated financial statements, Adris grupa generated total revenue of HRK 5.73 billion in 2021, which is 20% more compared to the previous year. Revenue from the sale of goods and services amounted to HRK 5.3 billion, which is 23% more than the revenue achieved in 2020. Consolidated earnings before interest, tax depreciation and amortisation (EBITDA) amount to HRK 1.02 billion, which is 5% less than the figure achieved in pre-pandemic 2019. Net earnings in 2021 amount to HRK 403 million.
The start of 2021 was marked by a very uncertain business situation. Restrictive epidemiological measures were in force, consequently causing a low level of business activity. Cross-border business and tourist trips were practically suspended and HORECA sales channels closed. It was only in June that the opening of the economy began and, most importantly for Croatia, the mass arrival of tourists. However, a new big wave of the pandemic began in October and lasted until the end of the year.
In 2021, all companies within the Group undertook business transformation programmes, including digitalization, with the aim of increasing the level of operational excellence and gaining a competitive advantage. Strategically, this crisis has confirmed that Adris has a well-diversified portfolio of jobs. Having invested HRK 400 million in 2021 and prepared a series of new projects, Adris has shown that it has maintained the continuity of the development even under conditions of high business uncertainty.
The Istrian part of the Group's tourism segment has shown resilience in the conditions of economic crisis, and the best results have been achieved in the segment of luxury hotels in Rovinj
Global tourism grew by about 4% in 2021, and the figures are still at only 28% of the record 2019. 2021 trends indicate the beginning of a recovery in tourism demand. Europe experienced the fastest recovery, with a growth rate of 19%, which is still 63% lower than the reference year 2019. Croatia has achieved significantly better results than its Mediterranean competition thanks to the more favorable epidemiological situation in the summer months and the proximity of key source markets. The situation was also different within Croatia with regard to connections with key European markets.
In 2021, Adris’ tourism section generated sales of 1.48 million units, which is a growth of 94% compared to 2020, and 75% compared to the record-breaking 2019. The Istrian part of the tourism segment accounted for 86% of sales achieved in 2019, while Zagreb and Dubrovnik hotels accounted for an identical 42% of the units sold. In the Istrian part, the luxury segment achieved the best results, generating sales of 95% of units compared to 2019. If we analyze only the main season, i.e. the June-September 2021 period, Adris’ luxury hotel segment in Istria achieved a 13% increase in sales compared to the record-breaking results achieved in 2019. This confirms the validity of Adris’s strategy to invest in the highest segments of hotel offer.
The group's tourism segment generated revenues from the sale of goods and services in the amount of HRK 1.36 billion, which is 78% of the revenue generated in 2019. The earnings before interest, tax and depreciation (EBITDA) amounts to HRK 500 billion, which is 79% less than the figure achieved in pre-pandemic 2019. Net earnings amount to HRK 153 million.
Numerous transformation initiatives have been implemented in the tourist segment of the Group, with special emphasis on improving user experience, revenue management using advanced analytics and further development of direct sales channels. In 2021, investments were also made to improve existing products, mostly shared facilities at campsites. Total investments amount to HRK 200 million, and preparations for the renovation of Zagreb hotels and the Hotel Marjan in Split have continued.
Croatia osiguranje continued its business transformation processes and achieved double-digit net profit growth
In 2021, Croatia’s insurance market achieved strong growth of nearly 9%, while in 2020, it recorded a decline of 2.6 %.
Croatia osiguranje is still the market leader in the Croatian insurance market with a total share of 25.7%. The total gross written premiums in Croatia amounted to HRK 2,810 million, which is an increase of 5% compared to the same period last year. The consolidated gross written premiums, including regional branches, amount to HRK 3,436 million and is 6% higher than last year. The combined ratio from regular business activities of CO Group stands at 93.1 and has improved by 1.7 percentage points mainly due to a lower claims ratio compared with the previous year, which was marked by two major earthquakes in addition to the pandemic.
Numerous business improvement projects were implemented in 2021, including price management based on advanced analytics, optimisation and rationalisation of the non-profitable part of the portfolio, significant improvement of the claims management process, more efficient acquisition costs management and a reduction in the costs of support activities. The programme also covers subsidiaries, thus transferring positive experiences from the parent company to regional branches as well.
In line with the change in business conditions and the evolution of global trends, Croatia osiguranje continued investing in its digital transformation in the amount of more than HRK 100 million in 2021.
Croatia osiguranje achieved a consolidated net profit in the amount of HRK 363 million, which represents an increase of 11%.
Cromaris achieved growth in all its key business indicators, exports account for 87% of sales revenue
Despite the logistical difficulties and closed catering facilities in early 2021 due to the crisis related to the Covid-19 pandemic, Cromaris recorded growth in all key business indicators in 2021. The sales volume of 12,421 tonnes of fresh fish equivalent were achieved, which is a 20% increase compared to the previous year. The sales volume of fish products amounted to 11,272 tonnes, an increase of 21%.
Export markets saw a 21% increase in sales volume. Foreign markets account for 86% of Cromaris' sales volume and 87% of sales revenues. The company is present in a large number of European markets, and since November 2021, it is present in the Spanish market, the world’s second-largest market for sea bream and sea bass.
Revenues from differentiated products, primarily fresh gutted and packaged fish – sea bass, sea bream and meagre fillets – increased by 7%. In 2021, Cromaris expanded its production assortment with two top-quality, nutritionally valuable and gastronomically highly valued fish — greater amberjack and dentex — and is the only company in the world to farm these fish. The launch of these innovative products has been supported by many years of research and knowledge of Cromaris experts. Both species are exceptionally well accepted on the market. Sales revenue amounted to HRK 613 million in 2021 and was 20% higher compared to the previous year. Cromaris made earnings before interest, taxes and depreciation (EBITDA) in 2021 amounting to HRK 67 million, which is 14% more compared to 2020. Cromaris recorded net profit amounting to HRK 13m, which is an increase of 40%.
In 2021, Cromaris formed a new, three-member Management Board and continued the process of business transformation with an emphasis on profitability.
Statement by the President of the Management Board, Marko Remenar:
Adris grupa operations were successful during the second year of the pandemic. The good results were achieved on account of a well-diversified business portfolio, significant agility and ability of the Group to quickly adapt to a new market and economic developments, and the commitment of its employees. The Group made the best of another pandemic year to carry out rationalization of its system, while at the same time digitizing numerous business processes, realizing investment projects with the highest rates of return, and preparing strategic investment projects for the Group. In addition, the focus was on the quality of services delivered and the quality of the product sold, as the main determinants of business sustainability. Business and financial results in 2021 give us the stability and strength necessary to achieve further business growth and realize operational and financial goals during uncertain circumstances in which we currently live and work.