Investments will be made in Maistra hotels, Cromaris fish farming and Croatia Osiguranje
The supervisory board of Adris, one of Croatia’s largest companies, accepted their operational plan on December 21, 2015, for the period 2016-2018. According to the CEO of Adris, Ante Vlahović, their plans may seem ambitious but they are all achievable because the demand is growing in every segment in which Adris is currently present.
Adris has announced a strong investment cycle to support their plans and their investment policy will be focused on a high and premium niche in tourism, premium segment in fish farming and of course life and health insurance.
Vlahović reminded that the strategic transformation of the company is completed so the future of Adris will be based on three sustainable lines of operation. He also announced that Adris will invest approximately 4 billion kuna in tourism, health foods and regionalization of insurance until 2018.
Adris’ investments in their tourism brand Maistra up to date have totaled 2,5 billion kuna and placed this company at the very top of Croatian premium offer both in terms of price and guest satisfaction. Strong investment cycle, with added attention to direct sales channels, resulted in an average price increase and a mild prolongation of the tourist season. New investments of approximately 1,6 billion kuna will ensure Maistra’s entire tourism offer is on 4 and 5 star level with key products being new hotels Park and Valdaliso. Along with investments in Rovinj – Vrsar, Maistra also sees a potential for growth in other top destinations in Croatia.
When it comes to Cromaris, Adris’ fish distribution and farming business, its business environment is positive and out of all of their services within this industry, farming of Sea Bream and Sea Bass is the fastest growing one. The company has invested 640 million kuna in this part of their business and a large part of it was spent on the new hatchery in Nin. Sales have gone up by 60% in the last 6 years with increased sales prices and decrease in inputs. Adris intends to invest additional 370 million kuna and to achieve production of 10 000 tonnes of fish per annum.
And last but not least, regarding Croatia osiguranje, Croatia’s largest insurance company, Supervisory board concluded that there is room for growth on the Croatian market, especially when it comes to health and life insurance. After it was announced that the financial restructuring and an 840 million kuna recapitalization is finished, the first phase of operational restructuring was also finalized with the goal to centralize business operations and strengthen their sales structure. Adris intends to invest almost 2 billion kuna in their insurance business by the end of 2018 and to play a significant role not only in Croatia but in the entire region.
Successful implementation of new business plans and finalization of all announced activities will surely increase not only the value of the entire system but also stock value. It’s important to note that annual earnings per share for Adris stock from 1994 until today was approximately 28%.
Photo credits: Cromaris, Maistra, Adris grupa