Adris is operationally and financially ready to take the next business step

Remenar: “A well-diversified portfolio of businesses, maintaining high investment potential, an ambitious list of prepared investments, excellent people, as well as the current business and financial situation in the Group give us reason to look to the period ahead with less uncertainty, despite the circumstances"

With the General Meeting of Adris grupa that was held in Rovinj today, most of the Annual General Meetings of the Group’s companies have been concluded. Maistra, HUP Zagreb and Cromaris all held their GMs the same day. The General Meeting of Croatia osiguranje took place on 26 May, while Grand Hotel Imperial d.d. will hold its General Meeting on 15 June.

Presenting last year's business results, Adris grupa CEO Marko Remenar opened the meeting reminding the shareholders of the macroeconomic environment, noting that “in 2021 the pandemic continued to have a significant impact on our business, especially in the first half of the year, when we operated in significantly restricted circumstances. Our businesses reacted differently. Tourism continued to cope with a considerably reduced demand in the first six months, health food also faced challenges, primarily in the wholesale segment, while the pandemic mostly had a positive impact on insurance, as reduced mobility resulted in less damages and consequently led to a better result. In such circumstances, all three of our businesses have achieved growth in both revenues and profit. The Group recorded a consolidated net result of more than HRK 400 million. This results is still below the company's potential, but is nevertheless solid in given circumstances and guarantees the company’s further growth, increase in investments and dividends paid to shareholders.

Meanwhile, inflation has become the key macroeconomic and even social topic. “What started as a result of a disruption of supply chains took full swing due to war activities in Ukraine. The combination of the still hindered supply chains and significant growth and volatility of prices of energy, food and a range of raw materials still keep us in a working regime that requires rapid response and considerable adaptability of the entire system. Adris’s shallow and efficient organisation allows quick response to the current environment, while business diversification and a well-balanced portfolio enable continuity of development in uncertain conditions. The fact that we will soon be joining the euro area and hopefully the Schengen area as well, should further mitigate the systemic risks the Croatian economy is exposed to and have a relatively positive impact on the conditions we operate in.”

As was pointed out, Adris grupa recorded HRK 5.7 billion in total revenues in 2021, 20% more than the year before. Revenue from the sale of goods and services amounted to HRK 5.3 billion and was 22% higher compared to 2020. The consolidated earnings before interest, tax and depreciation (EBITDA) amounted to HRK 1.02 billion, 4% less than in pre-pandemic 2019. The net profit in 2021 reached HRK 403 million. Indebtedness remains extremely low and stands at 0.8 x EBITDA, which is a precondition for putting an ambitious development plan into action. Potential growth areas and investment priorities have been defined, while operational excellence and business digitalisation projects have been accelerated, particularly in insurance and tourism.

After the CEOs of Adris companies presented their shareholders with the results achieved in insurance, tourism and mariculture – Davor Tomaškovic (Croatia osiguranje), Tomislav Popović (Maistra) and Ivan Leko (Cromaris) – in his conclusion Mr Remenar emphasised that: “A well-diversified portfolio of businesses, preserved high investment potential, an ambitious list of prepared investments, excellent people, but also the current business and financial situation in the Group all give us reason to look to the period ahead with less uncertainty, despite the circumstances".

In short, Adris is both operationally and financially ready to take the next step in its business and continue with its “active dividend policy”.

HRK 15.5 per share dividend from retained earnings achieved in 2005 - 2011

In accordance with the announced agenda, after it adopted the 2021 financial reports, the General Meeting also passed the decision on 2021 profit allocation: to allocate last year’s net profit in the amount of HRK 2,354,268.70 million to retained earnings.

The General Meeting then discharged the members of the Management Board and the Supervisory Board.

The General Meeting decided to pay out dividends in the amount of HRK 15.50 per share. The dividends will be paid out from the retained earnings generated by the Company from 2005 to the end of 2011. All shareholders of the Company registered as shareholders with the Central Clearing & Depository Company on 15 June 2022 are entitled to the dividends, to be paid out on 5 July 2022.

Finally, the shareholders also passed decisions on clearing the remuneration report for Management and Supervisory Board members for the financial year 2021, on appointment of the Company’s auditors for the year 2022, and on changes to the Company's Statutes.

Shareholder questions

At the General Meeting, shareholders asked questions about equity interests in Sava Re and the strategy to increase their interests in the Slovenian insurance company, about Croatia osiguranje new products and the possibility of applying the “drought policy” in other areas in Croatia, as well as dividend pay-out.

Highlights

Adris grupa recorded HRK 5.7 billion in total revenues in 2021, 20% more than in the year before. Revenue from the sale of goods and services amounted to HRK 5.3 billion and was 22% higher compared to 2020. The consolidated earnings before interest, tax and depreciation (EBITDA) amounted to HRK 1.02 billion, 4% less than in pre-pandemic 2019. The net profit in 2021 reached HRK 403 million. Indebtedness remains extremely low and stands at 0.8 x EBITDA, which is a precondition for putting an ambitious development plan into action. Potential growth areas and investment priorities have been defined, while operational excellence and business digitalisation projects have been accelerated, particularly in insurance and tourism.

 

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