ENNA Group records strong growth in 2022

Financial results of ENNA Group in 2022 grew compared to 2021. Revenue growth was recorded in all business segments, with a particular increase in revenue from sales abroad.

Zagreb, April 28, 2023 – ENNA Group's financial results in 2022 grew compared to 2021. Revenue growth was recorded in all business segments, with a particular increase in revenue from sales abroad. Consolidated revenues reached HRK 60.7 billion (EUR 8 billion), which represents a growth of 62 percent compared to the previous year. At the same time, the companies of the group based in the Republic of Croatia achieved revenue of HRK 29.3 billion (EUR 3.9 billion), and companies based abroad HRK 31.4 billion (EUR 4.1 billion). The total consolidated EBITDA of the ENNA group amounted to HRK 628.9 million (EUR 83.5 million), which represents an EBITDA margin of 1%. The profit tax of the ENNA Group in the Republic of Croatia for 2022. was HRK 129 million (EUR 17 million), of which the so-called extra profit tax HRK 35.6 million (EUR 4.7 million).
During 2022, ENNA Group managed companies in the energy and logistics sector as well as in food sector. The flagships of ENNA Group in these segments are Prvo plinarsko društvo (PPD), ENNA Opskrba, ENNA Logic and ENNA Fruit.
Record gas prices and robust LNG growth
PPD ended the year 2022 with revenues from operations of HRK 32.9 billion (EUR 4.4 billion), which is an increase of 56% compared to the previous year. At the same time, sales of gas on the foreign market account for 70 percent of revenue, while sales of gas to Croatian consumers account for 30% of PPD's total revenue.
The most significant increase in PPD's income is the increase in the price of gas on the world market, but also the group's high business activity on foreign markets.
Volatility on the European gas market continued in 2022, which was further fueled by the war in Ukraine. The issue of security of supply for the whole of Europe was also brought up to date, while in August gas price soared to a record high of almost 350 EUR/MWh. At the same time, throughout 2022, PPD provided gas for the citizens of the Republic of Croatia, in accordance with HERA's methodology for calculating the price of gas, at a price of 17 EUR/MWh, and then 41 EUR/MWh. Thanks to a strong portfolio, access to all European gas exchanges and long-term financial partners, PPD successfully passed through the financially extremely demanding last year, where one of the biggest challenges was maintaining the liquidity necessary for stable trading.
Investing in RES and geothermal energy
In the energy segment, ENNA Group continued with significant investments in renewable energy in 2022 as well. In its second year of operation, ENNA Opskrba became one of the leading companies on the Croatian market for the construction of commercial renewable energy sources and the supply of customers with green electricity and natural gas. ENNA Opskrba reached revenue of HRK 866 million (EUR 114.9 million). The company sold more than 1,000 solar power plants for households in Croatia.
Investments in renewables are also realized through the companies ENNA Solar, ENNA Esco and ENNA Geo. ENNA Geo is exclusively engaed in development projects aimed at the exploitation of geothermal energy. In 2022, ENNA Geo began research of two wells of geothermal energy sources in Slavonia, where the construction of geothermal power plants is planned.
ENNA Fruit - the largest buyer of domestic fruits and vegetables in the Republic of Croatia
During 2022, the company ENNA Fruit confirmed its status as the leading purchaser of fruit and vegetables in Croatia, with revenues exceeding HRK 1 billion (EUR 133 million), EBITDA amounting to HRK 26 million (EUR 3.5 million). The main activities of the company ares organization of production, purchase, storage, packaging and marketing of fresh fruits and vegetables on the domestic and foreign markets. It cooperates with more than a thousand domestic subcontractors, and in the past year it increased the number of employees by 38 percent. Business growth is the result of expansion into the markets of Serbia, Slovenia and Bosnia and Herzegovina, as well as investments in modernization. In Varaždin, additional storage facilities were opened for the storage of carrots, onions and potatoes, as well as washing and packing plants for carrots and potatoesd. In 2022, ENNA Fruit started a loyalty program for subcontractors, which guarantees fruit and vegetable producers the purchase of contracted quantities of goods and closer cooperation, while providing technological support through education and monitoring of all stages of production, all with the aim of increasing domestic fruit and vegetable production.
Business segment of logistics
ENNA Group also operates in the segment of logistics and rail cargo transportation through the companies ENNA Logic and ENNA Transport. Consolidated revenues of the logistics segment in 2022 amount to HRK 220 million (EUR 29 million), which is 35 percent more than a year earlier. ENNA Logic achieved an increase in container traffic in cooperation with Maersk. Also, during the past year, development and investment in the Rijeka Gateway container terminal project continued. It is a terminal that is expected to open in 2025. It is being jointly developed and managed by ENNA Logic and APM Terminals, which is part of the Maersk Group (APM Terminals 51%, ENNA Logic 49%). The cooperation between Enna and Maersk will establish a logistics corridor from Rijeka through Croatia to Central Europe. It is expected that this will shorten and reduce the cost of transporting goods from Asia to Central European countries, and make Rijeka one of the most important ports on the logistics map of Europe.
Corporate social responsibility
During 2022, the ENNA group devoted exceptional attention to the most vulnerable groups of society, helping through its own Novo Sutra Foundation, as well as its companies. After the start of the war in Ukraine, the foundation organized the arrival of more than 70 refugees from Ukraine to Croatia and provided them with paid accommodation and utilities. Refugees are mostly families of employees of the Ukrainian state energy company Naftogaz, which cooperates with the PPD. In addition, in the fall of 2022, PPD launched the humanitarian campaign "Every child deserves a warm home" in which it covered the costs of electricity and gas for all children's homes and SOS children's villages in Croatia during the six cold months (October - March). Also, Foundation continued the scholarship project for more than 50 children from the area of Banovina affected by the earthquake.