ADRIS GRUPA d. d.

Rovinj

ADRIS GRUPA d. d.

CONDENSED NON-AUDITED CONSOLIDATED AND SEPARATE

FINANCIAL STATEMENTS

for the period ended 30 September 2021

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Content

MANAGEMENT REPORT ......................................................................................................... 3

A SET OF CONDENSED NON-AUDITED CONSOLIDATED AND SEPARATE FINANCIAL

STATEMENTS ............................................................................................................................ 7

Consolidated and separate statement of comprehensive income (cumulative) ...................................................... 8

Consolidated and separate statement of comprehensive income (quarter) ............................................................ 9

Consolidated and separate statement of financial position .................................................................................... 10

Consolidated and separate statement of changes in equity .................................................................................... 12

Consolidated and separate statement of cash flows ................................................................................................ 16

SELECTED NOTES TO THE FINANCIAL STATEMENTS ...................................................... 17

  • 1. GENERAL INFORMATION ............................................................................................................................ 17

  • 2. SIGNIFICANT ACCOUNTING POLICIES ...................................................................................................... 18

  • 3. SEASONAL AND CYCLIC CHANGES ............................................................................................................ 19

  • 4. SIGNIFICANT CHANGES IN THE CURRENT REPORTING PERIOD ....................................................... 19

  • 5. INFORMATION ON BUSINESS SEGMENTS ............................................................................................... 20

  • 6. EARNING PER SHARE ................................................................................................................................... 21

  • 7. CAPITALIZED COST OF SALARIES .............................................................................................................. 21

  • 8. FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUE ...................................................................... 21

  • 9. SHARE CAPITAL ............................................................................................................................................. 22

  • 10. DEFERRED TAXES .................................................................................................................................... 22

  • 11. FINANCIAL ASSETS AND FINANCIAL LIABILITIES ............................................................................. 23

  • 12. DIVIDEND PAYMENT DURING THE REPORTING PERIOD ................................................................ 24

  • 13. SIGNIFICANT TRANSACTIONS BETWEEN RELATED PARTIES ......................................................... 24

  • 14. EVENTS AFTER THE END OF THE REPORTING PERIOD ................................................................... 24

Declaration by the persons responsible for the preparation of the statements ....................... 25

ADRIS GRUPA d. d.

Rovinj

MANAGEMENT REPORT for the period ended 30 September 2021

1. PRINCIPAL ACTIVITY OF THE COMPANY

The principal activity of the company ADRIS GRUPA d. d. (hereinafter: "Adris" or the "Company") is management and investment. The aim of the Company as a corporate centre is to coordinate investment, management, development and operation of the system as a whole.

Adris (hereinafter: the "Group") comprises three strategic business units: tourism, managed by Maistra d. d., manufacture of healthy food managed by Cromaris d. d., and insurance managed by Croatia osiguranje d. d.

2. SIGNIFICANT EVENTS

In the first nine months of 2021, Adris generated HRK 4.51 billion in total consolidated revenue, which is up 23% from revenue recorded for the same period of last year. Revenue from sales of goods and services amount to HRK 4.18 billion and is by 25% higher than last year. Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) amount to HRK 1,065 billion and are 3% below the level in the pre-pandemic year of 2019. EBITDA for the same reporting period of last year amounted to HRK 610 million. Net profit for the first nine months of 2021 amounts to HRK 605 million while last year's profit amounted to HRK 141 million.

In the tourism division, the luxury segment achieved best operating results

Due to the effects of the coronavirus pandemic, business activity in the Group's tourism division was reduced in the pre-season this year again, with signs of stronger recovery in the main season.

Sales achieved in the first nine months amount to 1.34 million units, which represents a rise of 96% compared to the reporting period of last year and/or 76% of the result from the record year of 2019. The Istrian part of tourism division achieved 86% of sales generated in 2019, Zagreb hotels achieved 36% and Dubrovnik hotels 44% of units sold. Within the Istrian part, the luxury segment achieved best results, with 96% of units sold compared to 2019. The analysis of the main season alone, i.e. of the period from June to September 2021, shows that sales generated from the luxury segment are up 13% compared to the record year of 2019.

The Group's tourism division generated revenue from sales of goods and services in the amount of HRK 1.2 billion, which is 79% of revenue achieved in 2019. Revenue from sales of goods and services earned in the comparative reporting period of last year amounted to HRK 548 million. Earnings before interest, taxes, depreciation and amortization (EBITDA) amount to HRK 601 million, which is 85% of the results achieved in 2019. EBITDA for the first nine months of last year reached HRK 170 million. Net profit amounts to HRK 360 million, whereas in the first nine months of last year the division saw a loss of HRK 29 million.

The coronavirus crisis was utilised as an opportunity for further development of the company. Many transformation initiatives have therefore been launched in the Group's tourism division, with special emphasis on the improvement of user experience, revenue management through the use of advanced analytics and further development of direct sales channels.

Investments in the improvement of the existing products were made this year as well, primarily in common camp facilities. Estimated total investment for this year should exceed HRK 200 million. In addition, preparations of projects of renovation of hotels in Zagreb and the Marjan hotel in Split have continued.

Croatia osiguranje - profit growth achieved in the first nine months

Croatia osiguranje is the Croatian market leader with a total share of 26.9%. The total gross written premium generated by Croatia osiguranje in Croatia amounts to HRK 2,272 million, up 5% in comparison with the same period of last year. The consolidated gross written premium, including the regional subsidiaries, amounts to HRK 2,735 million and is 5% over the last year's. The combined operating ratio of CO Group is 92.9 and improved by 0.2 percentage points compared to prior year, primarily due to the lower claims ratio in the current reporting period.

For the first nine months of 2021, Croatia osiguranje reported consolidated net profit of HRK 320 million which represents an increase of 9%.

In early 2021, a series of transformation initiatives was launched, which led to premium growth and more efficient cost management. Their full effects are expected to occur in the coming year. This transformation programme also includes subsidiary companies, which allows for the transfer of positive experiences from the parent company to the regional subsidiaries. A series of innovations on key product lines is being prepared: car insurance, comprehensive insurance, property and health. Croatia osiguranje is focused on following the global trends and adjusting to the needs of the customers.

Strong support for the introduction of Laqo insurance, the first fully digital insurance solution within the region, continued in the first nine months of 2021. Non-financial indicators, which significantly contribute to the user experience, are very good. For example, Laqo is a brand that customers can buy in less than a minute and that pays claims in less than 24 hours.

Cromaris achieved 17% growth in sales volume and 19% growth in exports

Despite logistical challenges and closed catering facilities caused by the coronavirus crisis in the first part of the year, Cromaris recorded growth of all key business indicators.

For the first nine months of 2021 Cromaris recorded sales of 9,245 tonnes of whole fish equivalent, up 17% in comparison with the figures reported for the first nine months of last year. The volume of exports rose by 19%, primarily due to a strong growth on the Italian, Swiss and Polish markets.

Cromaris continues to achieve a high share from sale on foreign markets - 84% of sales volume and 85% of sales revenue. Revenue from differentiated products rose by 6%, comprising a high 43% share in total sales. The product portfolio has been supplemented with an extremely valuable project of new aquacultured species - greater amberjack and common dentex. Revenues from sales of goods and services amount to HRK 454 million, which represents a rise of 16%.

Earnings before interest, taxes, depreciation and amortization (EBITDA) amount to HRK 52 million, up 26%. Net profit is HRK 12.3 million.

3. RESEARCH AND DEVELOPMENT ACTIVITIES

The Company continually monitors events in its environment and invests in market research, in addition to directing and supporting activities of its subsidiaries with the purpose of achieving organic growth and recognizing business opportunities as well as realizing new acquisitions.

4. INFORMATION ON THE ACQUISITION AND RELEASE OF

TREASURY SHARES

From 1 January till 30 September 2021 the Company acquired 6,972 own class ADRS (ADRS-R-A) shares, accounting for 0.0725% of the shares from this class and 0.0425% of the Company's total share capital. During the reporting period, the Company acquired 23,826 own class ADRS2 (ADRS-P-A) shares, accounting for 0.3512% of the shares from this class and 0.1452% of the Company's total share capital.

Detailed information on each individual acquisition transaction was publicly disclosed in accordance with the Companies Act, Capital Market Act and the Rules of the Zagreb Stock Exchange d. d.

At the end of the reporting period, the Company owned a total of 121,882 own class ADRS shares, accounting for 1.26% of the shares from this class, and 561,347 own class ADRS2 shares, accounting for 8.27% of the shares from this class, i.e. total of 683,229 own shares, accounting for 4.16% of the Company's total share capital.

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Adris grupa dd published this content on 21 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 April 2022 09:24:11 UTC.