Atlantic Grupa in Q1 2021 earned a net profit of 84.6 million kuna (€11.2 million), a drop of 5.3 percent from Q1 2020, the company said on Wednesday.

Although for over a year operations have been under the impact of the Covid-19 pandemic, in the first quarter of 2021 Atlantic Grupa recorded only a minor decrease in sales, which amount to 1.2 billion kuna, or 2.4 percent less than in the same period of 2020, the company said.

Earnings before interest, taxes, depreciation and amortization (EBITDA) amount to 168 million kuna and are 7.4 percent lower, while net profit amounts to 84.6 million kuna, a 5.3 percent decrease.

“A slight decline in relation to the comparable period of the previous year is a consequence of significant restrictions on the operation of hospitality facilities and other measures to combat the pandemic, which resulted in reduced consumption outside homes throughout the first quarter of this year, but also of increased sales of certain categories, primarily Argeta and Farmacia, in March last year, due to the stockpiling in households after the onset of the pandemic,” said Atlantic Grupa.

New Argeta factory near Varazdin

The company also notes that in March it launched an investment in a new factory for the production of the Argeta savoury spread, to be located in Kneginec municipality near Varazdin. The factory, worth around €50 million, is expected to be put into operation 15 months after a building permit is obtained.

The project is expected to help create up to 150 jobs.

(€1 = 7.57 kuna)