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Štefan Kassay, economic theoretician, Slovakia We should not fool ourselves and count on state help but by raising productivity

New jobs lead to recovery of Osijek metal industry OLT agricultural machinery worth €1.4 million will be operating in Africa

Foreign Direct Investment Less than €440 million invested into Croatia in 2010 a drop of over 70% compared with last year

INTERVIEW

INDUSTRY

INVESTMENT

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PAGE 5 2010

Croatian Business & Finance Weekly Established in 1953 Monday / 2nd May / 2011 Year IV / No 0151 www.privredni.hr

S U P P O R T E D

B Y

T H E

pvinternational pv international C R O A T I A N

C H A M B E R

O F

E C O N O M Y

MOVEMENTS IN ECONOMY AND LABOUR MARKET

Higher employment will have to wait until the end of 2013 Young people are currently in the most aggravated circumstances. They cannot afford to wait years until the economy picks up which might force them to leave the country Jasminka Filipas etween 2008 and the end of 2010, 122,351 jobs were lost in Croatia. Higher employment can only be expected when GDP growth reaches between 3% and 4%, possibly in the second half of 2013. This was stated at the round table Movements in economy and the labour market - analyses and predictions, organised recently by the Croatian Employment Service. As Zrinka ŽivkovićMatijević from Raiffeisen Consulting said, anticipated GDP growth this year, which might range between 1% and 2%, will not be enough to create new jobs; and there are numerous other negative economic indicators. The share of foreign debt in GDP is

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close to 100%; there are no essential structural reforms (lower expenditure was not envisaged in the budget, even though the tax

Share of gross foreign debt in GDP is close to 100% burden remains extremely high), and the deficit will exceed the planned 5%. According to analyses from RBA Consulting it will reach 5.8% of GDP. Crisis tax stimulated grey economy In the absence of consolidation, possible only after 2012, public debt might exceed the limit of 60% of GDP in two to three years and this might have many significant consequences, pointed out Zrinka Živković-Matijević. She also repeated that public debt below 60% is a precondition for EU accession. Everything that has occurred during the past, for example the introduction of the crisis tax which decreased consumption and stimulated the grey economy; jobs were lost; exports decreased;

debt accumulated; important reforms were lacking; demographic trends were negative; inflation grew, all this left a heavy burden for future generations. Youth is currently in the most difficult of situations since after their education they do not have time to wait for economic recovery, and thus could lead to another migration of intellectuals. Slowing of negative trend Rapid accumulation dynamics of debt also means a share increase of expenses for interest in total state consumption as well as less chance for economic growth. Nothing much should be expected from tourism, said analyst of Splitska banka Zdeslav Šantić. He evaluates we can anticipate higher income from tourism (around 6%), but this will not have a great impact on GDP growth. The Croatian Employment Agency analyst, Darko Oračić, claims that unemployment after the tourist season will increase by 3%, and that this rise might finally halt, since GDP growth of 2% is sufficient to stop an unemployment rise, which is exactly what is anticipated for this year.


2

Privredni vjesnik Year IV No 0151

MLADEN JAKOVČIĆ, PRESIDENT, CROATIAN METROLOGY SOCIETY

Croatian Chamber of Economy annual awards

Conference Measuredly into Europe

etrology is science which performs measuring with the goal of assuring precise and comparable result of measurement. “When you can measure what you are speaking about and express it in numbers, you know something about it, but when you cannot measure it, when you cannot express it in numbers then your knowledge is of a meagre and unsatisfying kind”, said Lord Kelvin, whose words are possibly the best description of reasons to measure. Almost everything is measured today. Without metrology there is no trade, development of new products, weather forecasts, medical diagnostics or environmental protection. The history of metrology reaches into ancient times. Three thousand years before Christ, the stick the length of a forearm of the pharaoh, enlarged by the width of his fist, is the first known prototype of measurement. Many years passed until the rulers’ body parts were replaced by a unique unit of length - meter. This occurred in 1875 in Paris when representatives of 17 countries signed the

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IMPRESSUM: Privredni vjesnik Kačićeva 9 10000 Zagreb +385 1 5600020 uprava@privredni.hr www.privredni-vjesnik.hr/ subscription

Metric Convention with the goal of assuring international unity and perfection the metric system. This day is still celebrated as World Metrology Day. Metrology is divided into three main areas: scientific, industrial and legal. Legal metrology concerns the development of new measurement methods and standards. Industrial metrology is the most common part of metrology, comprising the measurement in industrial production with the goal of providing value, efficiency and quality of products. In most contemporary industries, the cost of measuring comprises between

In most contemporary industries measurement costs comprise between 10% and 15% of production costs 10% and 15% of production costs. Legal metrology is regulated by the state, which passes laws and regulations with the goal of assuring precise measuring of special interest, such as measuring regarding trade, health protection, human safety and environmental protection. In Croatia, the main holders of metrology activities are the State Office for Metrology, Croatian Accreditation Agency, Croatian Metrology Institute and the Croatian Metrology Society. At a conference ‘Measuredly into Europe’, to be held between May 19 and 21, participants will be introduced to legal metrology requirements, the national metrology infrastructure and EU legislation within this area.

FOR PUBLISHER Nikola Baučić +385 1 4846661 uprava@privredni.hr

IMC MANAGER Dea Olup +385 1 5600028 olup@privredni.hr

EDITOR IN CHIEF Darko Buković +385 1 5600003 bukovic@privredni.hr

TRANSLATION Lučana Banek lucanab@gmail.com Mirjana Cibulka mirjana.cibulka@gmail.com

EXECUTIVE EDITORS Andrea Marić maric@privredni.hr Vesna Antonić antonic@privredni.hr

INTERNATIONAL OPERATIONS Ray Fletcher fletcher@privredni.hr

Zlatna kuna for eastern Croatia: Saponia, Osatina and Hemco Recognition to companies achieving positive long term business results in all categories Svetozar Sarkanjac f Zlatna kuna, a reputable recognition for business excellence awarded by the Croatian Chamber of Economy, could become the permanent property of those to whom it has been awarded it several times, the Croatian Chamber of Economy – County Chamber Osijek would be faced with serious problems. Award winners for this year, the most successful companies in Osijek – Baranja County according to results achieved last year are as follows: large com-

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Companies are faced with many hurdles in day-to-day business which the recession has not helped panies - Saponia from Osijek; medium-sized companies Poljoprivredna zadruga Osatina and small businesses Hemco from Đakovo. These three companies have been awarded the Zlatna kuna several times in the last 10 years since the ceremony was held in Osijek. According to all official data, these companies have achieved positive long-term business results in all categories (total revenue achieved, profitability,

number of employees and investment). In addition, all fully fulfil their obligations towards suppliers, employees and the state. They all have one additional point in common: a continuous and annual investment into development, market research, new products and particularly penetrating and expanding into new markets, each in its own field of operations. Unfair position These companies are faced with many hurdles in the day-to-day business and the recession has impacted on their development plans. However, they are in the position where they are able to pay staff regularly and require no deferment of state taxation. This places them in a somewhat problematic position; on the one hand they adhere to all current legislation whilst on the other their honesty puts them at a disadvantage in terms of competitiveness when compared with other, less scrupulous organisations. Damir Skender, Mirko Ervačić and Slobodan Mihalj, senior executives of Saponia, Osatina and Hemco, anticipate further investment, new products and new markets in 2011 as these are imperatives for development. All three companies are gaining in value as their results are being achieved under extremely difficult operating conditions.


www.privredni.hr Business & Finance Weekly

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INTERVIEW: ŠTEFAN KASSAY, ECONOMIC THEORETICIAN, SLOVAKIA

We should not fool ourselves and count on state help The crisis cannot be solved by the accumulation of public funds and redistribution to people in the most aggravated circumstances but only by preserving productivity and the regular functioning of companies Igor Vukić lovakian economist Štefan Kassay has been an economic theoretician for many years. However, his work has not stopped only at theory. As co-owner of a successful company IDC Holding, whose 1,000 employees produce biscuits and sweets, he tested many of his ideas in practice. He came to Zagreb to promote his second book from a series of five books dedicated to entrepreneurship and the economy. The first book was promoted last autumn at Interliber and is entitled Enterprise and Entrepreneurship – Entrepreneurial Environment. The second volume is entitled Economy and Finances, followed by Strategic Communication, Internal Processes and Learning and Growth. Privredni vjesnik discussed with Kassay

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According to my opinion, companies help the state not vice versa the consequences of the crisis on entrepreneurship in Central Europe. Which lessons can Central European companies learn from last year’s economic crisis? Global economic tension has inevitable consequences to countries such as Slovakia or Croatia. It is important to recognise the cause of the crisis and the features of the country hit by it. On the basis of the Slovakian experience, a relatively speedy recovery might be expected with a tendency to increase productivity and the systematic removal of damaging elements. It has been proven that it is important to be dedicated to activities which will be useful in the future. For

example, expand training and workshops for the development of new qualification capabilities required for the next stage. How can companies adjust to the new, post-crisis situation? It is in unproductive to dwell on the effects of the crisis. The initial trauma might be overcome through psychological indifference and concrete plans for future activities. Companies need to increase productivity, and this is possible only by greater work discipline, lower expenses and a systematic perfection of production processes. In that period not only technical equipment and impeccable work production technologies are important, but above all working with people and offering help to workers that need it. What can the state do to help? In my opinion, companies help the state, not the reverse. A crisis cannot be solved by the accu-

mulation of public funds and its redistribution to people under the most aggravated circumstances, but only by preserving productivity and the regular functioning of companies. This is a complex issue. We should not delude ourselves and count on state help. The priority is to concentrate on the elimination of squandering and non-productive activities. Simplification of administration should be demanded. Production and trade process as well as international co-operation should start. How can we encourage people, especially young, to venture into entrepreneurship? I would never impose anything on anyone. Entrepreneurial activity is as valuable just as any other profession. However, it requires certain features and habits which might not be intrinsic to all. Interest in entrepreneurship is based on personal features and personal motivation. It is quite

often that a successful entrepreneur says he never intended to go into business. His entrepreneurial activities developed on the basis of personal concrete interest, when ideas are transformed into practice and the individual who realised them became deeply involved in theoretical issues. Only afterwards, he was surprised to discover his business was developing. It may be concluded that the emphasis is on the realisation of personal needs, ideas and tendencies. Another motive might be the idea of a better life quality. However, it is not always possible to exactly predict the success of business since business conditions are in constant flux. If a person has the entrepreneurial spirit within him, sees acceptable business conditions and has an idea of what he would like to achieve, then it is probable he will become an entrepreneur. Therefore, I believe it is possible to motivate, but it is not effective if the person is not interested in business.


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Privredni Pr P riivvrreedn dni vjesni vjesnik Year Y Ye ar IIV ar VN No o 0151

( €1.37 million

contract signed between Morocco and OLT

( 152 itemss

of agricultural machinery exported to Africa

NEW JOBS LEAD TO RECOVERY OF OSIJEK METAL INDUSTRY

OLT agricultural machinery will be operating in Africa A contract has recently been signed with Morocco for the sale of Croatian agricultural machinery with a value of €3 million most of which covers OLT products with the local distributor of agricultural machinery, makes it a concessionary and a distributor of agricultural machinery produced by the companies affiliated to the Croatian Agricultural Equipment Cluster. The first contract is worth €3 million and the majority (€1.4 million) relates to Osijek OLT products. Prior to the signing of this important contract, a consignment warehouse was opened housing a permanent exhibition of Croatian agricultural machinery and equipment. The project possibilities are increasing in importance since Moroccan farmers cultivate some ten million hectares of agricultural land.

Svetozar Sarkanjac he surviving fragments of the once powerful Osijek metal processing industry which used to employ thousands of workers from Osijek and Slavonia are slowly coming back to life. The numbers are certainly not as large as they used to be, but nevertheless over the first few months of this year, OLT and MIO Standard receivables have shown positive indicators and their sales departments have seen a considerable increase in their

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About 65% of OLT production currently used on the local market workload. Good news has come particularly from OLT, a one hundred years old ironworks and machinery factory from Osijek. OLT representatives, as part of a delegation of the Agricultural Equipment Cluster, have recently returned from Morocco where they signed a contract valued at some €1.37 million for the delivery of various items of agricultural machinery from the OLT product range. The company pointed out that this agreement will have a significant impact on their achievement and the overall production process will restore its normal flow or perhaps encourage the production of larger series of agricultural machinery. New orders are anticipated after the delivery of the currently ordered 152 items of machinery as well as the potential of North African market expansion. In addition, OLT has

been contacted by buyers from Russia, which would considerably increase total output. “The market has started pulsating and as we produce quality machinery we are not surprised. It was not easy to anticipate when this would happen but it happened just before spring sowing. We are particularly satisfied with our operations through the first quarter and in the first part of April. The good times are back, reminding us of the beginning of the year 2000”, stated Ante Ćerluka, Board President of OLT. Cluster operations satisfactory However, the contract in Morocco was not a surprise. A year ago the Croatian Agricultural Equipment Cluster organised an

Range of products Core OLT production covers agricultural operations from land preparation through sowing to harvest and its product range comprises both heavy and light machinery. The core products are pneumatic and mechanical sowing machines, harvesting machinery, cultivators, disc harrows and ploughs. appearance of Croatian producers at a large fair in Morocco where their agricultural machinery aroused unprecedented interest. After a year of negotiations, slowed by the political crisis in North of Africa at the beginning of the year, the contract was finally concluded in Morocco very recently. The contract, signed

Good markets In addition to penetrating new markets, the recovery of OLT has also had a significant impact on existing markets. “We are still operating in our existing markets. About 65% of our output is currently sold to the Croatian market and the remainder is sold primarily to Serbia and Bosnia and Herzegovina. In addition to the recovery of the Croatian market, the recovery of regional markets is becoming increasingly evident. These are clearly indicators guaranteeing survival and further expansion”, stated Darko Marković, Commercial Director at OLT. According to him, the contract signed in Morocco is a stepping stone for other countries in the Maghreb region. Nevertheless, as he pointed out, the OLT sales function follows events in North East Europe with deep interest, particularly in Russia and Ukraine, traditional markets for OLT products.


www.privredni.hr Business & Finance Weekly

5

( €116.3 million

largest foreign investment into Croatia in 2010 was from Belgium

FOREIGN DIRECT INVESTMENT

Under €440 million invested into Croatia in 2010 Croatian National Bank preliminary data indicate a plunge in investment of 79% over 2009 when it totalled €2.09 billion Igor Vukić ett foreign direct investment into Croatia totalled €439.9 million in 2010, according to preliminary data from the Croatian National Bank.

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Foreign direct investment slumped 90% over 2008 which saw a record €4.2 billion The country saw a considerable plunge of 79% over 2009 when investment totalled €2.09 billion; a 90% fall-off was also shown over 2008 when investment hit a record of €4.2 billion. The largest foreign investment in 2010, from Belgium, was €116.3 million. Italy invested €112.8 million and Luxemburg €11.6. Slovenia ranked fourth with €86.6 million, followed by Ireland with €70.4 million. The largest segment of foreign direct investment last year was considered as other business activities totalling €249.3 million, followed by financial mediation, other than insurance and pension funds at €186.6 million. In-

Foreign direct investment in Croatia in the last decade (in millions of euros) 2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

1467,5

1137,9

1762,4

949,6

1467,9

2768,3

3679

4218,4

2095,6

439,9

Source: Croatian National Bank

vestment into real estate totalled €166.6 million. Nevertheless, concurrently, outflows covering the production of chemicals and chemical products amounted to €485 million and €132 million in post and telecommunications operations. After all inflows and outflows from all fields of activity are balanced, there is a nett investment into Croatia of €439.9 million. Equity investment down 25% According analysts statements from the Croatian Chamber of Economy in the April issue of Economic movements, total equity investment in 2010 was €521 million or 25% down over 2009 and the lowest result since 2004. On the other hand retained earnings totalled €540.5 million, or 57% up over 2009, the best result since 2006. Other investment saw an outflow of €604.4 million. The structure of investment was pointed out at the Croatian Chamber of Economy to be untypical:

financial mediation (€186 million) and trade (€99 million) did not rank as the first two in investment, irrespective of the fact that they used to absorb most of foreign investment. Concurrently a negative nett investment value was recorded in the chemical industry (-€485 million) and ranked as the seventh area of activity with respect to total investment over the last 17 years. “Investment from the Netherlands recorded the highest nett outflow of

Slovenia ranks fourth among foreign investors with €86.6 million €297.5 million and, concurrently, a decrease in Croatian investment in that country by €787 million. Pliva was the link between the chemical industry and the Netherlands”, as was explained in Economic movements. According to Croatian National Bank data, foreign direct investment in

Croatia between 1993 and the end of 2010 totalled €24.47 billion. Austrian investors – leaders in the long term Austrian investors have been leaders in foreign direct investment into Croatia in the last 17 years with €6.22 billion, followed by investors from the Netherlands (€3.7 billion), Germany (€2.9 billion), Hungary (€2.3 billion) and Luxemburg (€1.37 billion). With respect to the fIn terms of areas of activity the largest amount (€8.6 billion) was invested into financial mediation or banks, followed by investment in wholesale and mediation in trade (€2.8 billion). The production of oil derivatives ranks third at €1.6 billion. The highest Croatian investment abroad in 2010 was in Slovenia (€315 million), Syria (€162.9 million) and Germany (€160.1 million). Nevertheless, due to those transactions with the Netherlands, the end result was that Croatia had inflows of €153 million.


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WE PRESENT

BEKAN TRADING - RESTAURANT KADENA, SPLIT

Privredni vjesnik Year IV No 0151

ECO TERRA, RIJEKA

Production and export of organic delicacies

People like trying out new things The restaurant has 410 varieties of world and Croatian sparkling wine on offer he former owner of the restaurants Argola and Terra, Bernard Križanović, turned a new page in his business with the takeover of the Bekan trading company, owner of the Bekan restaurant in

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Chefs from the most well-known restaurants throughout Croatia will soon appear as guests in Kadena Split. The restoration of Bekan restaurant and changing its name to Kadena were not only formal in nature; with its modern style and range of food and drink, Kadena is a typical wine and lounge bar or an exclusive restaurant mainly visited by local business people and their business partners. The company employs 16 staff, and the wellknown Croatian chef, Braco Sanjin, is responsible for the gastronomic menu. “We offer dishes which contain ingredients not usually combined in traditional cuisine. We have visitors who wish to try something new. We also offer traditional dishes, especially dishes based on Mediterranean cuisine,” points out Braco Sanjin. Kadena offers 410 wine varieties and the restaurant has recently become a place for promoting top

Croatian wine makers and their wine. Korta Katarina, Krauthaker, Matuško, Matošević, Čamak have all promoted their wines here and the promotion of Korak and Arman wines is also under preparation. A place for wine promotion The restaurant is proud of its excellent list of world famous and Croatian sparkling wines. In only a year after its opening, Kadena restaurant has become one of top 20 local restaurants according to the Croatian gastronomy guide Gastronaut. During its first year the restaurant achieved positive results even in the depths of the crisis which hit the catering sector. Even though it is often thought we instantly receive money for our services, debt collection of is one of our greatest problems since we are a favourite gathering place for many business people. It is a vicious circle, difficult to break. Therefore, suppliers and caterers suffer most, opines Bernard Križanović, owner of Bekan trading. He is convinced this tourist season will be able to ease the problems of caterers on the Adriatic coast and is preparing a new project in addition to wine promotion. Chefs of the most well-known restaurants from throughout Croatia and neighbouring countries will soon appear as guests in Kadena which is able to accommodate around 200 customers. (J.V.)

In addition to their organic production, Eco Terra represents other eco-producers in EU countries raining to be a cultivator and processor of medicinal and aromatic herbs opened my eyes and changed my life perspective. My family became interested in planting the first plantations of medicinal herbs on land we had purchased a few years earlier. We planted English Lavender (lavandula angustifolia) and are anticipating a top quality crop. In Daruvar we planted lavandin (Budrovka) and a test plantation of lavender Reverchon II (viška modrulja). This is where it all started, stated the director of the company Eco Terra, Valentina Galjer Jagodnik, from Rijeka. She established the company a year ago in co-operation with David Kadlec. Their principal activity included the ecoproduction and representation of similar producers of medicinal and aromatic herbs, health- and organic-food and other similar products in EU countries. They also established a representative company, Tempest sro, in Prague which represented numerous Croatian companies and products at the recently held international fair Biostyl. 309 companies participated from that part of Europe and 14,000 visitors attended.

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Internet shop Croatia was represented by the slogan Croatia – country of ecology, health and tourism. Some of the exhibited products included truffles, fig rolls, eco-products and cosmetics made from medicinal

herbs, raspberry and blackberry desert wine, marmalade, canned fruit, cod, olive oil, balm, brandies (travarica and loza), and wine (graševina and Rhine Riesling). The exhibition was supported by the Croatian Chamber Of Economy, Zagreb, the Ministry of Agriculture, Fisheries and Rural Development, the Ministry of War Veterans and the Croatian Embassy in Prague. Surprisingly, the Croatian venue was one of the most visited, pointed out Valentina Galjer Jagodnik. She ventured that she had hopes for similar regarding their recently created internet shop (www.ecoterra.hr). However, they have no intention of stopping there, since they are currently negotiating over the opening of a store in Prague and approaching the Slovak market. To start, they will participate at the Biostyl fair

Negotiations in progress for opening a store in Prague and approaching the Slovak market to be held in September in Bratislava. “We are known in the world as the country of ecology, health, tourism, beautiful sea and an exquisite gastronomic range. We believe this is the way to further promote these qualities to EU countries,” concluded Valentina Galjer Jagodnik. (J.F.)


www.privredni.hr Business & Finance Weekly

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CROATIAN FOREIGN CURRENCY MARKET Currency

AUD CAD JPY CHF GBP USD EUR Source: HNB

EUR

Kuna exchange mid-rate

7.37

5,405225 5,204040 6,074460 5,706354 8,245710 4,947426 7,354349

USD

5.04

27.4.

28.4.

29.4.

5.74

7.36

5.02

5.72

7.35

5.00

5.70

7.34

4.98

5.68

7.33

4.96

5.66

7.32 26.4.

WEEK APRIL 30, 2011

CHF

4.94 26.4.

27.4.

28.4.

THE PRICE OF ACQUISITION

29.4.

5.64 26.4.

27.4.

28.4.

29.4.

::: news Kraš profits down as raw material prices increase The Kraš Group achieved total consolidated income of €27.96 million in the first quarter of 2011, some 7% less year-on-year. Nett profit plummeted by 63%, to €0.22 million. Local market sales income totalled €15.32 million, and €11.96 million on foreign markets. During the first quarter the prices of main raw material continued to rise, affecting a rise in business expenditure, according to Kraš.

Atlantic facing loss due to Droga Kolinska A

€133.7 million in sales revenue achieved in first quarter by Atlantic Group tlantic Group achieved sales revenue of €133.7 million in the first quarter of 2011, which is 93.6% up over the same period last year. Earnings before interest, taxation, depreciation and amortisation (EBITDA) was 116.1% up, nevertheless nett losses totalled €1.5 million. Atlantic Group ex-

Profit 116.1% up, yet nett loss of €1.5 million plained the loss in terms of the linear impact of financial expenditure which increased as a result of the Droga Kolinska acquisition and the usual unfavour-

able seasonal impact on business activities. Sales revenue almost doubled, mainly due to added Droga Kolinska revenue and there was an increase in revenue from Active sports nutrition, by 26.2% and Pharma division, by 14.7%.

Growth in Germany and Great Britain The integration of Droga Kolinska into the Atlantic Group structure was implemented by the merger of both sales and distribution business activities on all regional markets, by signing new contracts with all key buyers, by broadening the product range as well as integrating logistics processes. According to

Atlantic Group, additional inputs were made into an analysis of production processes aimed at increasing production capacity use. Total Atlantic Group sales on the Croatian market were 28.6%, Serbia (23.1%), Slovenia (11.6%) and Western Europe (10.3%). Atlantic Group recorded growth on the German market (22%) and in Great Britain (25%). The share of their own brands in sales after the integration of Droga Kolinska brands is now 69.3%, the distribution of principal branded products 18.1%, pharmacy 6.6%, whilst products produced by Atlantic Group as private brands for large business systems both in Croatia and abroad comprise 6.1% of sales. (D.Ž.)

Poorer results from Janaf During the first quarter Jadranski naftovod showed business income of €13.40 million, which is €0.14 million less over 2010, whilst nett profit dropped by 24.8%, to €2.32 million. Income was 9.3% lower than planned. Business expenditure reached €10.56 million, up €0.86 million year-on-year. Underground gas storage makes profit Underground gas storage (Podzemno skladište plina - PSP) achieved total income of €21.56 million and profits of €4.86 million in 2010. The upgrade of the existing underground storage in Okoli enabled a record supply of gas - 280,000 m³ per hour in February 2011, and gas storage of 630 million m³, which exceeds the former 553 million m³. The director, Dragica Krpan, announced PSP will continue achieving good results with the upgrade of the plant in Okoli and the construction of new underground gas storage.


8 ::: news

Privredni vjesnik Year IV No 0151

Expectations for the tourist season

New success of Bolfan wines at Decanter Bolfan wines achieved great success at the Decanter World Wine Awards 2011 in London. According to unofficial data, which will be published on May 17, pinot grey Bolfan Libertin 2010 won a silver medal. Four other wines from Tomislav Bolfan and his wine cellar in Hraščina took bronze medals. This is the second year Bolfan wines participated at Decanter, and they also achieved great success last year, winning two medals. 40 top Dalmatian restaurants selected At the Dalmacija Wine Expo, gastronomic experts selected the top 40 restaurants in Dalmatia. The winner is Pojoda restaurant from Vis. The top ten includes: Nautika, Dubrovnik; Gil’s, Dubrovnik; Kapetanova kuća, Ston; Foša, Zadar; Pelegrini, Šibenik; Nikola, Stobreč; Boškinac, Pag; Cantinetta, Skradin and Kod Marka, Šipanska luka. The panel making the selection over the past three months consisted of gastronomic experts recruited amongst chefs, restaurant owners, wine and gastronomic journalists as well as renowned gourmets. Fashion.hr becomes regional leader In only one season, the Fashion. hr Industrija fair has become the focal point of the entire fashion scene, the local clothing industry, footwear, jewellery and leather accessories. In addition to well-known brands, the fair also presents young fashion designers who exhibited their collections under the LIFT label. The next Fashion.hr Industrija fair will be held September 30 – October 2 at the Zagreb Fair and Slovenian designers will also participate. In mid-May the Slovenian version (Fashion.si) of the fashion portal Fashion. hr style community will begin work.

Positive anticipation irrespective of the current trend towards last minute arrangements Most tourist facilities in Istria and Dubrovnik have recorded satisfactory capacity, with full capacity in Istria, at the Opatija Riviera, Kvarner, in Southern Dalmatia and in Dubrovnik Sanja Plješa

Outstanding results for Zagreb

re-season in Croatia is normally considered to commence with Easter holidays, which were rather later this year, only one week prior to 1st May, International Workers Day. Nevertheless, it was perhaps for the fact that these holidays were at the end of April or due to the current recovery from economic crisis in Europe, tourism results for Croatian destinations were very satisfactory, even promising, for the continuation of a good pre-season and the beginning of the main tourism season. Most tourist facilities in Istria and Dubrovnik have recorded satisfactory capacity, with full capacity in Istria, the Opatija Riviera, Kvarner and in Southern Dalmatia and Dubrovnik

Zagreb recorded 5,800 tourist arrivals over the Easter holiday, 48% up over the same period last year. There were 8,835 overnight stays (37% up over 2009). Zagreb Tourist Board expressed extreme satisfaction with the results achieved and anticipated a continuation of positive results over the forthcoming months.

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Good progress made Iva Bahunek, Croatian Employers Association for Hotel Management Director, agreed on the optimistic beginning of the pre-season. “The Association hopes the satisfactory results will continue at the beginning of May when a larger number of tourists is anticipated from neighbouring Slovenia. Dubrovnik-Neretva County, for example, recorded 11,985 tourist arrivals and 41,184 overnight stays. This means that

arrivals were 83% up and overnight stays 88% up in 2010 over the Easter holiday in 2009, although it was three weeks earlier. In Dubrovnik-Neretva County there were 10,937 foreign tourists over this Easter holiday, 87% up, with 37,955 overnight stays, 89% up over 2009. Most tourists came from France, Spain, Bulgaria, Greece and Great Britain. “The arrival of some 2,000 tour-

Zagreb, Varaždin and Osijek tourism programmes prominent in continental Croatia ists to 17 hotels on the Crikvenica-Vinodolski Riviera is a satisfactory start and a good indicator of a satisfactory pre-season in 2011 and the main season outperforming the results for the last few years. These hotels recorded a satisfactory number of both domestic and foreign tourist stays. There are satisfactory indicators also inland, particularly in the

mountains near Novi Vinodolski”, pointed out Iva Bahunek. Still too early In addition to Kvarner where tourist destinations were full with Italian and Slovenian tourists, Southern Dalmatia, particularly Makarska, recorded a satisfactory tourism results this Easter. Local hotels recorded stays mainly from Great Britain and France. Iva Bahunek stated that it is still too early to anticipate the tourist season as it is about one month in advance. She pointed out that the trend towards last minute arrangements still continues and it cannot be predicted with certainty how the season will play out. Nevertheless, all current indicators give grounds for optimism. Istria has for years been the most successful tourism area in Croatia and a leader of its kind in national hotels, yet Iva Bahunek emphasised the need for investment into continental Croatia where cities such as Zagreb, Varaždin and Osijek stand out for their tourism, historical and cultural programmes.

PV International 0151  

PV International - The first weekly newsletter covering the Croatian economy as well as that of the wider region, in English

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