October the 28th, 2024 – A 450 million euro Valamar investment before 2026 is set to see this giant Croatian tourism company raise its quality even higher.
As Poslovni Dnevnik writes, Valamar announced its business strategy until 2026, as well the assessment of operations until the end of the year, and key goals and strategic initiatives until 2026.
By 2026, a 450 million euro Valamar investment in raising portfolio quality is planned. The aim is to achieve double-digit annual business growth. Target operating earnings (EBITDA) after the implementation of strategic initiatives will amount to 150 million euros, representing average annual earnings growth of about 11%, which is predicted in the period from 2022 to 2026.
For the coming period, the target dividend yield is around 4%, and the payment of the dividend will depend on the realisation of the annual business plans and market movements of the share value.
this large valamar investment will boost employment
Valamar presented two strategic projects; the construction of which is in progress. Pical Resort 5, in Poreč, is the largest single investment in Croatian tourism, with plans to open in 2026. The new Pical hotel will significantly contribute to the development of the destination through the construction of 514 accommodation units, the realisation of facilities for family holidays, year-round operations, the employment of more than 700 people and the opening of the largest congress centre in Istria.
Arba Resort 4/5* on Rab, whose opening is planned for the summer of 2025, will reposition Rab towards high-value family tourism and create new jobs on the island. Work on the construction of the summer resorts Pical and Arba is progressing as planned.
The results of Valamar’s operations for the first nine months of 2024 were also published, during which a 12.2% increase in operating income to 390.1 million euros was achieved. Strong growth in sales revenue of 13.1% was realised in the pre-season, representing growth of 11.4% during the main season. Due to the sudden unfavourable weather conditions, the results in September remained only at the level of last year.
In 2024, the Valamar Group expects to achieve between 411 and 415 million euros in business revenue, i.e. annual revenue growth of 10.4 to 11.5%. Operating profit (adjusted EBITDA) is expected to grow between 7.0 and 9.7% to the level of 117 to 120 million euros. The expected results are in line with the goals of the business growth strategy until 2026, this is alongside the huge Valamar investment planned.
Valamar will report on the realisation of its strategic goals and adjust its plans to business conditions on an annual basis. For the purposes of the long-term reward plan in shares, Valamar intends to acquire its own shares by the end of 2024 in the equivalent value of 2 million euros.
