Quarterly Report • Apr 30, 2021
Quarterly Report
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Valamar Riviera is Croatia's leading tourism company operating hotels, resorts and camping resorts in prime destinations – Istria, the islands of Krk, Rab and Hvar, Makarska, Dubrovnik, and Obertauern in Austria. With over 21,000 keys, Valamar's 36 hotels and resorts and 15 camping resorts can welcome around 58,000 guests daily and provide perfect holidays and authentic experiences for each guest.
The company believes in a growthdriving strategy focused on investments in high added-value products, talents, innovative services and destinations to maintain business continuity. The active promotion and advancement of these interests make Valamar Riviera a responsible and desirable employer and one of the top Croatian and regional investors in tourism with over HRK 6 billion invested in the last 17 years.
Steered by sustainability and social responsibility, Valamar leads the innovative management of leisure tourism and continuously creates new value for all our stakeholders.
Valamar Riviera's business success is based on longstanding partnerships and an open communication with its key stakeholders. Therefore, we have established policies at company level that represent our continuing commitment to be the hospitality market leader in Croatia in terms of service quality, guest and user satisfaction, caring for the interests of our employees, company and local community, environmental protection and resource management.
Tourism portfolio of Valamar Riviera Group
| Significant Business Events | 4 |
|---|---|
| Results of the Group | 8 |
| Results of the Company | 18 |
| Investments | 20 |
| The Risks of the Company and the Group | 24 |
| Corporate Governance | 30 |
| Related-party Transactions and Branch Offices | 33 |
| Valamar Share | 35 |
| Additional Information | 39 |
| Disclaimer | 41 |
| Responsibility for the Quarterly Financial Statements | 43 |
| Quarterly Financial Statements | 44 |
Despite the strong impact of the COVID-19 pandemic in the first quarter of 2021 and the consequent decline in the number of overnights, by timely adjustment of business and firm rationalization of its activities, Valamar Group improved its operating result (EBITDA), successfully prepared new tourist season and preserved jobs.
In general, first quarters have a very small share in the Group's annual revenues due to the high seasonality of Croatian tourism. In 2020, first quarter revenues were very good until the start of the COVID-19 pandemic, which culminated in the closure of all Group facilities on March 15, 2020 and strict travel restrictions. On the other hand, the pandemic affected the entire first quarter of 2021, which was marked by local restrictions on catering services and extensive travel restrictions within the EU and around the world. As expected in such conditions, in the first quarter of 2021 there was a decline in overnight stays and sales, a decline of 45% and 52% respectively, compared to the same period in 2020.
In the first three months of 2021, Valamar Diamant Hotel & Residence was opened, which tactically shifted from the regional to the Croatian market, especially weekend stays and focused on professional domestic and foreign sports groups that did not have indoor training bans (1st and 2nd rank competitions) and cycling groups in the region. A significant contribution to overnight stays in hotel accommodation was made by professional athletes from the wider region, the Middle East and Croatia, both because of our sports-oriented offer in the properties and because of the special more liberal travel conditions enjoyed by professional athletes. Germany had a particularly high share in the structure of guests because Istria was positioned as a green zone by German government.Valamar Obertauern Hotel in Austria has been completely closed all last season (ski tourism).
In the same period, two camps were opened for year-round operations after the introduction of a special offer "extended stay" (14 and 30 days) targeting families and individuals with the possibility of work / schooling from a remote location. The offer had a very good response on the Croatian market with a share of over 50% of sales on the domestic market.
TIMELY ADJUSTMENT OF BUSINESS ENSURED BETTER OPERATING RESULT, SUCCESSFUL PREPARATIONS FOR THE NEW TOURIST SEASON AND JOB PRESERVATION
Uncertainty related to the global pandemic persists and further significant disruptions in tourist flows are possible in 2021, which may negatively affect the Group's business results. Tourist industry is pinning its hopes on the growing vaccination of the population and more favourable weather conditions during spring and summer. Also, the planned introduction of vaccine passports at EU level for mid-June 2021 should make it easier to cross borders and travel for tourists and others. Vaccine passports would be a document with a digital record that the traveller has been vaccinated, recovered from COVID-19 or the record of his/her test results.
However, at this moment it is still premature to give quantitative estimates related to the negative impact of COVID-19 on Valamar's business in the coming period, and it is expected that the tourism sector will continue to be affected by the crisis in the rest of 2021, while returning to normal business is expected in 2022 and 2023.
A great advantage of Istria and the northern Adriatic, where most of the Group's facilities are located, is that they are traditional car destinations for our main emitting markets (Italy, Slovenia, Austria, Germany, the Netherlands, the Czech Republic, Hungary, etc.). Our camping resorts are also playing an increasing role in attracting guests, proving to be the first choice for many tourists not only because of the perceived lower risk of COVID-19, but also because of the increasing level of service and quality of facilities as a result of significant investments in recent years.
The health and sense of security of our guests is our top priority. We introduced key innovations last season the V Health & Safety program comprised of health, safety and environmental standards, "CleanSpace - 100% privacy", an enhanced cleaning system, online reception, hotel service "Bed & Brunch", and Valfresco Direkt online food shopping and delivery service by which Valamar has reinforced the market position of small producers and local family farms. This season, a concept of V care guarantee was also introduced providing for all necessary healthcare services during guest stay (and in the case of COVID-19). For the guests who booked their accommodation directly through valamar.com or the Valamar Reservation centre it includes for example free consultation with a doctor via telephone (telephone or video call) 24 hours a day, antigen testing at hotel or camping resort and PCR testing at designated locations in all Valamar destinations. In addition, Valamar will cover the costs in case there is a need for extending the stay of persons infected with COVID-19 and everyone included in their reservation for up to 14 days as well as reimburse travel expenses for the return journey of persons infected with COVID-19 if the return dates are different from the regularly scheduled return dates.
Since the beginning of the COVID-19 crisis, Valamar Riviera has actively approached the mitigation and control of potential risks, established the Risk Management Committee, and adopted Risk Management Regulation. The Committee's tasks and powers include risk assessment and its impact on business, guests and employees, as well as determining measures to protect guests and employees, property and organizing business processes and operations. Depending on the circumstances and intensity of the risk event, the Committee decides on changing the financial, business and contingency plan, activating escalation plans to preserve the company's liquidity, solvency, and maintaining business continuity, as well as other necessary acts in accordance with the assessment of bookings and revenues.
During 2020 necessary liquidity for the next period was provided through operational savings plans, investment savings, payment delays and agreements with banks and other investors. Valamar has deferred the vast majority of credit liabilities for 2020 and for the first half of 2021 and secured additional medium-term liquidity through a loan contract with a club of banks in the amount of EUR 66 million. During the first quarter of 2021, the Group regularly serviced its credit obligations in accordance with the agreed moratoriums in 2020. The Group's cash balance at the end of the first quarter was HRK 461 million.
The social partners of Valamar Riviera, led by the Labour Union of Tourism and Services of Croatia and the Labour Union of Istria, Kvarner and Dalmatia, supported the continuation of the Valamar program "Pause, Restart" for job preservation, which has been in force since March last year with the support of social partners and Government measures. The new agreement was signed for one year and will be in force from April 1, 2021 to March 31, 2022. The "Pause, Restart" program provides compensation in the amount of 60% of regular income, i.e. a minimum of HRK 4,250 net for all Valamar
IMPROVED ADJUSTED EBITDA COMPARED TO THE COMPARABLE PERIOD IN 2020
GROUP'S CASH BALANCE AS OF 31 MARCH 2021 AT HRK 461 MILLION
employees who are on hold or a break due to business restrictions due to the pandemic, relying on current government measures.
Government support measures were key to preserving jobs in tourism last season and provided a strong incentive for all tourism companies to successfully cope with the emergency, until economic and tourism flows return to normal. The most significant measure is the preservation of jobs in the sectors affected by coronavirus (HRK 3,250 per employee for salary in March, or HRK 4,000 for salaries from April to December 2020). The Government of the Republic of Croatia continued with the measures for the preservation of jobs for the period January-April 2021, while the announced Government's plan for the extension of the measures for the following periods is still under discussion.
Disturbances in tourist flows due to the COVID-19 pandemic were also strongly present in the first quarter of 2021, when the number of overnight stays decreased by 45.3% compared to the same period last year, which resulted in a decrease in sales revenue of 52.1 %.
Negative adjusted EBITDA in the amount of HRK -39.8 million was realized, which is an improvement of 61% (i.e., an improvement of HRK 62.1 million) compared to the negative adjusted EBITDA realized in the first quarter of 2020 in the amount of HRK -101.9 million. The main reasons for this are: more cost-intensive preparation of the season in the first quarter of 2020 when the risk of a pandemic did not seem so great, adjustment of work to pandemic conditions within the Group in the first quarter of 2021, which includes general business rationalization and internal savings measures, the introduction of the "Pause, restart program" in April 2020 and the use of support measures of the Government of the Republic of Croatia for the preservation of jobs.
Despite the challenging circumstances that mark the year 2020 and firts quarter of 2021., thanks to Valamar's proven successful business philosophy, a success formula consisting of continuous investment in employees, products and destinations, with high concern for sustainable business continuity and corporate social responsibility, we consider that the Valamar Riviera Group is in a stable position to withstand the eventual exceptional decline in business activities during 20211 .
Valamar has launched a new lifestyle brand called [PLACES] by Valamar, for guests seeking freedom of choice, modern designs and authentic destination experiences with full respect for nature and the environment. Lifestyle hotels are a recent trend in the hospitality industry because they push the boundaries of traditional hospitality products and services. Lifestyle hotels focus on creating unique experiences and providing authentic services, i.e. interpret the most valuable aspect of a destination to attract modern and younger travellers. These travelers are primarily millennials who are venturous and enjoy encounters with like-minded people, natural foods and dishes and care for environmental sustainability. The first Valamar hotel under the new brand is HVAR [PLACESHOTEL] by Valamar in Stari Grad on Hvar (ex hotel Lavanda). It has been invested close to HRK 53 million in the hotel's reconstruction scheduled to open mid-May.
With the completion of the second phase of investments that Imperial Riviera started in 2019, Valamar Meteor Hotel 4* in Makarska was successfully reconstructed and renovated. This investment is worth HRK 85 million, and the hotel received a number of new facilities and higher quality accommodation. The Valamar Meteor Hotel is market-oriented towards families with children, guests seeking an active vacation and athletes. The Valamar Meteor Hotel investments included the construction of a new outdoor pool and the expansion of the existing one with new facilities and attractions adapted to family needs, as well as the renovation of the indoor pool with a wellness center according to the Valamar Sun & Spa concept. In the first phase a number of 111 rooms were renovated, while the remaining 160 rooms were completely refurbished in the second phase.
Valamar Riviera's Supervisory Board approved 2021 investments in the amount of HRK 123 million for the completion of earlier initiated investments (Istra Premium Camping resort 5* and the accommodation for employees PRODUCT AND PORTFOLIO DEVELOPMENT CONTINUES: BRAND PLACES BY VALAMAR LAUNCHED
in Dubrovnik) and the completion of the first investment phase in Valamar Pinea Collection Resort as well as digitalization projects, and future projects. Minimum planned investments for 2021 are focused on completing initiated projects and preparing projects for new growth and development when conditions are met by stabilizing tourist flows.
In accordance with the Group Investment Policies, the Supervisory Board of Imperial Riviera approved investments in the amount of HRK 41 million, primarily focused on the completion of investments in Valamar Meteor 4* hotels in Makarska and Valamar Parentino 4* hotels in Poreč to be ready for the 2021 season.
All works in the first quarter are proceeding according to plan.
On April 21, 2021, the regular General Assembly of the Company was held at which decisions were made according to the decisions proposed by the Management Board and the Supervisory Board of the Company contained in the invitation to the General Assembly and published in its prescribed content on the website of the Zagreb Stock Exchange, as well as on the Company's website.
The following decisions were reached: decision on coverage of loss, decision on granting discharge to members of the Management Board, decision on granting discharge to members of the Supervisory Board, decision on appointment of auditors and decision on election of members of the Supervisory Board. The Report on Receipts of Members of the Management Board and the Supervisory Board for 2020 was also discussed.
As decided by the General Assembly, for a new 4-year term starting on 16 June 2021 six supervisory board members were elected as follows: Mr. Gustav Wurmböck, Mr. Franz Lanschützer, Mr. Mladen Markoč, Mr. Georg Eltz (previous members) and Mr. Boris Galić and Mr. Daniel Goldscheider. President and vicepresidents will be elected at the constituent meeting of the supervisory board which will be held on 16 June 2021 upon the beginning
of a new term. 1 We refer to the Disclaimer on page 43 of this report
The Management Board hereby presents the unaudited quarterly financial statements for the period from 1 January 2021 to 31 March 2021. The Group's income statement for the reported and previous period includes the following companies: Imperial Riviera d.d.2, Valamar A GmbH, Valamar Obertauern GmbH, Palme Turizam d.o.o., Magične stijene d.o.o., Pogača Babin Kuk d.o.o. and Bugenvilia d.o.o.
The Group's balance sheet for the reviewed period as at 31 December 2020 and as at 31 March 2021 includes the aforementioned companies.
The investment in company Helios Faros d.d. is conducted according to the equity method, since Valamar Riviera has no control over it, but significant influence.
The Management Board presents the quarterly financial statements for the first quarter of 2021.
Krk Premium Camping Resort 4*, Krk island
| 1 - 3/2020 | 1 - 3/2021 | 2021/2020 | |
|---|---|---|---|
| Total revenues | 49,428,623 | 34,153,864 | -30.9% |
| Operating income | 44,980,050 | 30,169,689 | -32.9% |
| Sales revenues | 41,384,174 | 19,822,251 | -52.1% |
| Board revenues (accommodation and board revenues)4 | 26,639,914 | 9,171,202 | -65.6% |
| Operating costs5 | 145,415,945 | 60,543,637 | -58.4% |
| EBITDA6 | -104,496,591 | -34,147,281 | -67.3% |
| Extraordinary operations result and one-off items7 | -2,575,125 | 5,616,546 | -318.1% |
| Adjusted EBITDA7,8 | -101,921,466 | -39,763,827 | -61.0% |
| EBIT | -230,176,574 | -159,165,686 | -30.9% |
| Adjusted EBIT8 | -227,601,449 | -164,782,232 | -27.6% |
| EBT | -314,886,306 | -186,734,431 | -40,7% |
| 31/12/2020 | 31/3/2021 | 2021/2020 | |
| Net debt9 | 2.851,116,054 | 2,924,841,969 | 2.6% |
| Cash and cash equivalents | 665,932,900 | 461,259,811 | -30.7% |
| Market capitalization10 | 3,730,415,243 | 3,629,593,210 | -2.7% |
| 1 - 3/2020 | 1 - 3/2021 | 2021/2020 | |
|---|---|---|---|
| Number of accommodation units (capacity) | 21,528 | 21,328 | -0,9% |
| Number of beds | 59,529 | 58,617 | -1,5% |
| Accommodation units sold | 50,570 | 22,257 | -56,0% |
| Overnights | 92,161 | 50,452 | -45,3% |
| ADR13 (in HRK) | 528 | 412 | -22,0% |
EV11 7,283,342,226 7,244,084,039 -0.5%
THE GROUP /continued
Total revenues Sales revenues Accommodation
0 0
Revenues and accommodation units sold
1 - 3/2020 1 - 3/2021
10,000,000
The first quarter of 2021 was strongly affected by the COVID-19 pandemic and the number of overnight stays decreased by 45% (to 50,452) compared to the comparable period of 2020. In the first three months of 2021, one hotel (Valamar Diamant Hotel & Residence) was opened while Valamar Obertauern Hotel in Austria has been completely closed all last season (ski tourism). In the same period, two camps were opened for year-round operations after the introduction of a special offer "extended stay", which were not working in the same period last year. As a result of opening of these capacities in the first quarter of 2021, with lower average prices, ADR fell 22% to HRK 412.
units sold
12,000
In the first quarter of 2021, total revenues amounted to HRK 34.1 million with a decrease of 30.9% (HRK -15.3 million). The total realized revenues were affected by:
a) decrease in sales revenue down by 52.1% (HRK -21.6 million) to HRK 19.8 million, mainly consisting of board revenues (HRK 9.2 million). Disruptions of tourism flows caused by the COVID-19 pandemic were strongly present in the first quarter of 2021, which recorded a drop in overnights (45.3%) compared to the same period last year. The only open hotel, Valamar Diamant Hotel & Residence 3*/4*, in Poreč achieved good results, attracting mostly domestic weekend guests and domestic and foreign athletes. Two camps were opened with special "extended stay" offers (14 and 30 days) focused on families and individuals who could work/ attend school remotely, with a very good response on the Croatian market. The average daily price decreased by 22.0% to the level of HRK 412. The above-mentioned offers, which largely attracted domestic guests, also
influenced the change in the revenue structure. Thus, sales revenues in the country amount to HRK 15.0 million with a share of 75.6% in sales revenues (29.3% in the same period in 2020) and are 2.9 million higher than in the comparable period of 2020. With a share of 24.4% in sales revenues (70.7% in the same period in 2020), foreign sales revenues amounted to HRK 4.8 million, a decrease of HRK 24.4 million.
b) increase in other operating revenues of 187.8% to HRK 10.3 million compared to the same period of 2020 mainly due to higher revenue from the cancellation of provisions for litigations.
c) the decrease in financial income of 10.4% to the level of HRK 4.0 million is primarily due to the decrease in other financial income, i.e. income from cassa sconta.
| (in HRK) | 1 - 3/2020 | 1 - 3/2021 | 2021/2020 |
|---|---|---|---|
| Operating costs15 | 145.415.945 | 60.543.637 | -58.4% |
| Total operating expenses | 275.156.624 | 189.335.375 | -31.2% |
| Material costs | 48.540.715 | 25.357.804 | -47.8% |
| Staff cost | 68.952.553 | 24.152.815 | -65.0% |
| Depreciation and amortisation | 125.476.175 | 125.010.425 | -0.4% |
| Other costs | 29.240.902 | 12.369.694 | -57.7% |
| Provisions and value adjustments | 203.808 | 7.980 | -96.1% |
| Other operating expenses | 2.742.471 | 2.436.657 | -11.2% |
Total operating expenses amounted to HRK 60.5 million and decreased by 31.2% (HRK-85.8 million) compared to the same period in 2020, in accordance with revenue decrease. Breakdown of total operating expenses:
a) material costs with a share of 13.4% (17.6% in the same period in 2020). There was a decrease of 47.8% to the level of HRK 25.3 million, primarily due to reduced direct costs of raw materials and supplies as well as costs related to promotional and marketing activities, in line with the reduced business volume.
b) staff costs with a decline in the share of total operating expenses, from 25.1% in the first quarter of 2020 to 12.8% in the first quarter of 2021. Staff costs amount to HRK 24.1 million and represent a decrease of 65.0% compared to the same period last year. This decline is the result of lower need for workforce, the introduction of the"Pause, restart program" in April 2020 and Government grants for job preservation.
Total COVID grants related to employee cost subsidies are included in the amount of HRK 38.8 million for the Group (same period 2020: HRK 0) and HRK 31.8 million for the Company (same period 2020: HRK 0).
c) depreciation in the amount of HRK 125.0 million or a decrease of 0.4%
d) other expenses with a decrease of 57.7% to the amount of HRK 12.4 million (share of 6.5% in total operating expenses). The decrease is primarily due to the Group's savings measures and the lower cost of accommodation, meals, transportation and daily allowances for employees due to the reduced business volume. The lower amount of other costs was also affected by the postponement of certain projects and lower costs of property insurance this year because last year the total cost for the entire 2020 was booked in the first quarter of 2020 when payment was made.
e) provisions and value adjustments with a decrease of HRK 0.2 million to the amount of HRK 8 thousand. 14 Classified according to Quarterly Financial
Statements standard (TFI POD-RDG).
15 Operating costs include material costs, staff costs, other costs, and other operating costs reduced by extraordinary expenses and one-off items.
RESULTS OF THE GROUP /continued
f) other operating expenses with a share of 1.3% (1.0% in the same period in 2020). The decrease of HRK 0.3 million to the level of HRK 2.4 million is the result of lower costs from previous years.
The first quarter generally carries a characteristic negative EBITDA due to the significantly less volume of seasonal operations. Thus, in the first quarter of 2021, the negative adjusted EBITDA amounted to HRK -39.8 million, which is an improvement of 61% (or an improvement of HRK 62.1 million) compared to the negative adjusted EBITDA realized in the first quarter of 2020 in the amount of HRK -101.9 million. The main reasons for this are: more cost-intensive preparations for the season in the first quarter of 2020 when the risk of a pandemic did not seem so great, adjustment of work to pandemic conditions within the Group in the first quarter of 2021, which includes general business rationalization and internal savings, the introduction of the "Pause, restart program" in April 2020 and the use of state grants for the preservation of jobs.
After lower financial expenses in the first quarter of 2021 related to exchange rate changes (explained in more detail in the next section), a significant improvement in EBT was achieved in the amount of HRK 128.1 million. Thus, the negative realized EBT in 2021 amounted to HRK -186.7 million after the negative EBT of HRK -314.9 million realized in 2020.
RESULTS OF THE GROUP /continued
In the first quarter of 2021, the net financial result amounted to HRK -27.3 million (HRK -84.1 million in 2020).
The main reasons for the HRK 56.8 million improved financial result compared to the previous comparative period are found in the decrease in net negative exchange rate differences (primarily unrealized on longterm loans) by HRK 46.6 million, given that the first quarter of 2020 was marked by strong kuna depreciation against the euro.
16 Net debt: non-current and current liabilities to banks and other financial institutions + liabilities for loans, deposits and other + other liabilities according to IFRS 16 (leases) – cash and cash equivalents – long-term and short-term investments in securities – current loans given, deposits, etc.
RESULTS OF THE GROUP /continued
On 31 March 2021, the total value of the Group's assets amounted to HRK 6,549.3 million, down by 4.8% compared to 31 December 2020.
Total share capital and reserves amount to HRK 2,688.1 million and are lower by 6.1% as a result of the usual loss in the first quarter of the year.
Total long-term and short-term liabilities to banks and other financial institutions as at 31 March, 2021 amount to HRK 3,372.2 million and are down by 3.7% compared to 31 December, 2020 as a result of repayment of short-term loans to two banks.
A large part of the loan portfolio (80%) consists of long-term loans with an agreed fixed interest rate, i.e. loans protected by derivative instruments (IRS) for the purpose of hedging against interest rate risk. In 2020, the Group deferred the payment of a total of HRK 349 million of principal to commercial banks and the Croatian Bank for Reconstruction and Development, of which HRK 272 million is deferred payment of principal for 2020, HRK 49 million for the first quarter of 2021 and HRK 27 million kuna for the second quarter of 2021. In addition, the payment of interest in the total amount of around HRK 47 million was postponed.
On 31 March 2021. the Group's cash balance amounted to HRK 461.3 million (+ HRK 204.7 million compared to 31 December 2020), together with i) agreed credit lines and moratoriums on credit obligations, ii) valuable tourist assets and iii) ownership-operational business model stable balance sheet position of the Group.
| Hotels and Resorts | 9.292 | ||
|---|---|---|---|
| VALAMAR COLLECTION | 1.261 | ||
| Marea Valamar Collection Suites | $5*$ | Poreč | 108 |
| Imperial Valamar Collection Hotel | $4*$ | Rab Island | 136 |
| Dubrovnik President Valamar Collection Hotel | $5*$ | Dubrovnik | 292 |
| Isabella Valamar Collection Island Resort | $4 / 5$ | Poreč | 334 |
| Girandella Valamar Collection Resort | $4 / 5$ | Rabac | 391 |
| Pinea Valamar Collection Resort | $5*$ | Poreč | 0 |
| VALAMAR HOTELS & RESORTS | 3.964 | ||
| Valamar Riviera Hotel & Residence | $4*$ | Poreč | 132 |
| Valamar Tamaris Resort | $4*$ | Poreč | 507 |
| Valamar Parentino Hotel | $4*$ | Poreč | 329 |
| Valamar Bellevue Resort | $4*$ | Rabac | 372 |
| Valamar Diamant Hotel & Residence | $3/4$ | Poreč | 372 |
| Valamar Pinia Hotel | $3*$ | Poreč | 170 |
| Valamar Sanfior Hotel & Casa | $4*$ | Rabac | 242 |
| Valamar Atrium & Villa Adria | $4 / 5$ | Krk Island | 92 |
| Valamar Carolina Hotel & Villas | $4*$ | Rab Island | 176 |
| Valamar Padova Hotel | $4*$ | Rab Island | 175 |
| Valamar Meteor Hotel | $4*$ | Makarska | 268 |
| Valamar Argosy Hotel | $4*$ | Dubrovnik | 308 |
| Valamar Lacroma Dubrovnik Hotel | $4*$ | Dubrovnik | 401 |
| Valamar Club Dubrovnik Hotel | $3*$ | Dubrovnik | 338 |
| Valamar Obertauern Hotel | $4*$ | Austria | 82 |
| [PLACES] by Valamar | 179 | ||
| Hvar [PLACESHOTEL] by Valamar | $3*$ | Hvar Island | 179 |
| SUNNY BY VALAMAR | 3.888 | ||
| Lanterna Sunny Resort by Valamar | $2*$ | Poreč | 606 |
| Allegro Sunny Hotel & Residence by Valamar | $3*$ | Rabac | 180 |
| Corinthia Baška Sunny Hotel by Valamar | $3*$ | Krk Island | 431 |
| San Marino Sunny Resort by Valamar | 3* | Rab Island | 457 |
| Eva Sunny Hotel & Residence | $2*$ | Rab Island | 284 |
| Dalmacija Sunny Hotel by Valamar | $3*$ | Makarska | 190 |
| Rivijera Sunny Resort by Valamar | $2*$ | Makarska | 258 |
| Tirena Sunny Hotel by Valamar | $3*$ | Dubrovnik | 208 |
| Trim & Helios Sunny Apartments by Valamar | $2*$ | Hvar Island | 85 |
| Crystal Sunny Hotel by Valamar | $4*$ | Poreč | 223 |
| Rubin Sunny Hotel by Valamar | $3*$ | Poreč | 253 |
| Miramar Sunny Hotel & Residence by Valamar | $3*$ | Rabac | 178 |
| Zvonimir Sunny Hotel by Valamar | $4*$ | Krk Island | 85 |
| Koralj Sunny Hotel by Valamar | $3*$ | Krk Island | 194 |
| Arkada Cunny Hotol by Valamar | $7+$ | L | 256 |
| Camping Resorts | 11.557 | ||
|---|---|---|---|
| CAMPING ADRIATIC BY VALAMAR - PREMIUM RESORTS | 5.352 | ||
| Istra Premium Camping Resort by Valamar | $5*$ | Poreč | 874 |
| Lanterna Premium Camping Resort by Valamar | 4* | Poreč | 2.930 |
| Krk Premium Camping Resort by Valamar | $5*$ | Krk Island | 500 |
| Ježevac Premium Camping Resort by Valamar | $4*$ | Krk Island | 632 |
| Padova Premium Camping Resort by Valamar | 4* | Rab Island | 416 |
| CAMPING ADRIATIC BY VALAMAR - RESORTS | 4.555 | ||
| Orsera Camping Resort by Valamar | 3* | Poreč | 592 |
| Solaris Camping Resort by Valamar | $3*$ | Poreč | 1.824 |
| Marina Camping Resort by Valamar | $4*$ | Rabac | 329 |
| Baška Beach Camping Resort by Valamar | $4*$ | Krk Island | 593 |
| Bunculuka Camping Resort by Valamar | $4*$ | Krk sland | 408 |
| San Marino Camping Resort by Valamar | $4*$ | Rab sland | 809 |
| CAMPING ADRIATIC BY VALAMAR - SUNNY | 1.650 | ||
| Brioni Sunny Camping by Valamar | $2*$ | Pula | 734 |
| Tunarica Sunny Camping by Valamar | $2*$ | Rabac | 160 |
| Škrila Sunny Camping by Valamar | $3*$ | Krk sland | 342 |
| Solitudo Sunny Camping by Valamar | マネ | Duhrovnik | $\Lambda$ 1 $\Lambda$ |
In the first quarter of 2021, total revenues decreased by 15.3% to HRK 32.0 million. Total sales revenues amount to HRK 18.9 million with a share in total revenues of 59 (83% in 2020). Compared to the same period last year, they are lower by 40.0% as a result of disruptions in tourist flows due to the COVID-19 pandemic, which were strongly present in the first quarter of 2021.
Revenues from sales with entrepreneurs within the group amount to HRK 1.2 million (HRK 5.6 million in 2020) while revenues from sales outside the group amount to HRK 17.7 million (HRK 25.8 million in 2020). Sales revenues in the country amount to HRK 14.1 million with a share of 74% in total revenues (48% in 2020) and are lower by 7% compared to the previous comparable period. Revenues from sales on foreign markets amount to HRK 4.8 million with a share of 25% in total revenues (52% in 2020). Compared to the previous comparative period, they are lower by 71%.
Material costs amounted to HRK 23.7 million with a decrease of 43.9% as a result of reduced business volume caused by the COVID-19 pandemic. Staff costs amounted to HRK 22.1 million, which is 62.8% less than in the same period last year. The reasons for the decline are lower labor needs, the introduction of "Pause, restart program" in April 2020 and measures of the Government of the Republic of Croatia to preserve jobs.
Depreciation amounts to HRK 98.1 million (HRK 99.6 million in 2020) and is lower by 1.5% compared to the comparable period last year. Value adjustments and provisions amount to a negligible HRK 8 thousand and are lower by 92.7% compared to the first quarter of 2020 when they amounted to HRK 110 thousand.
In the first quarter of 2021, the financial result amounted to HRK -25 million (HRK -77.3 million in 2020). The main reasons for the HRK 52.3 million better financial result compared to the previous comparative period are primarily the decrease in net negative exchange rate differences (primarily unrealized on long-term loans) by HRK 43.9 million, given that there was no strong depreciation of the kuna against the euro in the first quarter of 2021.
IMPROVEMENT OF EBITDA COMPARED TO THE COMPARABLE PERIOD IN 2020
The first quarter generally carries a characteristic negative EBITDA due to the volume of significantly less seasonal operations. Thus, in the first quarter of 2021, negative EBITDA in the amount of HRK -29.8 million was realized, which is an improvement of 69% (ie an improvement of HRK 66.6 million) compared to negative EBITDA realized in the first quarter of 2020 in the amount of - HRK 96.4 million. The main reasons for this are: more cost-intensive preparation of the season in the first quarter of 2020, when the risk of a pandemic did not seem so high, adjustment of work to pandemic conditions within the Group in the first quarter of 2021, which includes general business rationalization and internal savings measures, the introduction of the "Pause, restart program" in April 2020 and the use of support measures of the Government of the Republic of Croatia for the preservation of jobs.
Total assets of the Company as at 31.3.2021. amounted to HRK 5,702.0 million and was lower by 4% compared to 31.12.2020.
Valamar's strategy for the development of tourism products and high added-value amenities is one of the main drivers of growth and sustainable business continuity. The strategy is steered by sustainability and social responsibility while investing in products, employees and tourist destinations. Furthermore, Valamar's service concepts are continuously being developed to align the offer with current market requirements, primarily guests' trends and expectations. With a timely and thorough approach to mitigating and controlling the adverse effects caused by the COVID-19 pandemic, a customized business plan was introduced in all business segments, including investments. The structure and intensity of the Valamar Group projects was adjusted to the new extraordinary circumstances caused by the COVID-19 pandemic. The planned portfolio repositioning and development of high addedvalue products and services, with emphasis on the premium segment of resorts and camping resorts, has been adjusted by reducing investment intensity all while preparing new growth and development projects when the conditions are met. In order to align the hospitality portfolio plan and development with the current tourism flows and the proactive approach to cash flow management and financing, the investments in 2021 will mostly be focused on the completion of projects and raising service quality and guest satisfaction.
Considering the reduced investment intensity, the total approved investments of the Valamar Group amounts to HRK 164 million in 2021. As last year, Valamar Group will continue to adapt its products and develop digitization projects to further enhance service quality and guest safety in the upcoming tourist season. At Group level, a total of HRK 16 million has been provided for health and safety, as well as digitalization and innovation projects. Investments in this segment include the continuation
of projects from 2020, and relate to the automation of processes and systems such as improving the Online Reception and "self check-in" system, automating gate barriers, improving Valfresco Direkt online store services and other similar projects aimed at enhancing guest's health and safety services. HRK 17 million will be provided for smaller investments and the purchase of new equipment and furniture, while the remaining amount will be directed towards the completion of initiated investments in construction works and the preparation of future investments.
Valamar Riviera provided HRK 123 million for the 2021 investment cycle, and in addition to investments aimed at enhancing and implementing the the program for guests' health and safety, the company focused on investments in Istra Premium Camping Resort 5*. Considering the current consumer trends and preferences, this is a particularly attractive accommodation category, which represents a specific product of high guest loyalty, especially due to the perception of reduced health risks. Given the high occupancy rate of Istra Premium Camping Resort 5* in 2020 despite the unfavorable circumstances, the amount of HRK 10 million will be invested in enhancing service quality in 2021, mostly in the Glamping zone and food and beverages facilities.
Service quality will also be enhanced through targeted investments in three Valamar hotels. These include improvements of the exterior
and interior of the Champagne Breakfast & Brunch restaurant and Spinnaker restaurant at the Valamar Riviera Hotel in Poreč, which will enhance the new Old Town Holiday label within the Valamar Hotels & Resorts brand. Investments in this category include the promotion of the Sunny by Valamar economy brand, which is part of the midscale and the economy segment of the portfolio. As part of its rebranding, the Miramar Sunny Hotel will have improved Breakfast & Lunch services, the Valfresco 24/7 service available to guests, a digital library and the Chill & Play Zone which will make digital books and fun games available to guests. In addition to the above, the investment includes a self-service laundry and 30 rearranged accommodation units. Investments in the Rubin Sunny Hotel are focused on renovating interior public spaces.
Considering the aforementioned optimized investment plan in accordance with the current circumstances, sufficient funds have been provided for the completion of the first phase of investment in Valamar Pinea Collection Resort, while the accommodation for employees in Dubrovnik will be completed.
Planned investments in 2021 at the level of Imperial Riviera amount to HRK 41 million and mostly relate to the final phases of investment projects in Valamar Meteor Hotel and Valamar Parentino Hotel, which were postponed due to the previously mentioned extraordinary circumstances caused by the COVID-19 pandemic.
By investing in the Valamar Parentino Hotel, the main finalized projects include the renovation of 40 accommodation units, a children's playground, a pool bar, parking lot and landscape design. The investment in Valamar Meteor Hotel was marked by the completion of the second phase of investment, which mainly includes the renovation of 166 accommodation units, corridors and stairs, the refurbishing of the Reception and Lobby area, the construction of a new outdoor pool complex, renovation of the indoor pool area, as well as the MICE zone and VIP parking lots.
Tourism is a global industry, closely connected with the real and financial economy, geopolitical position and environmental sustainability. The integrity of this industry will determine its future growth. Given the importance of tourism and its overall impact on society, the Company and the Group monitor and assess risks at micro and macro levels. Moreover, when defining the strategy, particular attention is given to the short and medium–term risk impact in order to maintain business sustainability over time.
When monitoring and assessing risks the Company and Group use a proactive approach thus assessing the potential impact of each individual risk. The Company and Group consider risk management to be a key factor of differentiation among competitors. Risk management aims at creating sustainable value, thus offering reliability and security to numerous stakeholders.
There are five key steps in a risk management process:
1) Identifying potential risks;
2) Assessing identified risks;
5 KEY STEPS IN RISK MANAGEMENT PROCESS
3) Determining actions and responsibilities for efficient risk management; 4) Monitoring and overseeing preventive actions;
5) Exchanging information on risk management results conducted by the Management board.
The different types of risks facing Valamar Riviera can be classified into the following groups:
• Financial risks - related to financial variables, can have a negative impact on meeting liabilities for the company and the Group, liquidity, debt management etc.;
• Business risks - related to the way company business is conducted in terms of supply and demand, competition, adapting to market trends, investments, growth etc.;
• Operational risks - can arise from inadequate use of information, errors in business operations, non-compliance with internal procedures, human error, IT system, financial reporting and related risks, etc.;
• Global risks - can arise from natural disasters, pandemics, food shortage, social unrest, wars and other force majeure events beyond Valamar Riviera's control;
• Compliance risks - can arise from failure to comply with state laws and local regulations; risks related to changes in tax and other regulations.
In their day-to-day business activities, the Company and Group face a number of financial threats, especially:
1) Foreign exchange risk; 2) Interest rate risk; 3) Credit risk; 4) Price risk; 5) Liquidity risk; 6) Share-related risks.
The Company and Group have a proactive approach in mitigating interest rate and foreign exchange risks, by employing available market instruments. Internal risk management goals and policies aim at protecting foreign currency inflows during seasonal activity and partial interest hedging of the principal loan amount.
The Company and Group conduct their business operations across national borders and are exposed to foreign exchange risks. They mainly result from changes in the euro/ kuna exchange rate. Foreign exchange risk arises from future commercial transactions and recognized assets and liabilities. Historically, most of our foreign revenue has been in euros, the currency in which the majority of our long-term debt is denominated. Hence, for the most part the Company and Group are naturally hedged from exchange rate risks. Since some liabilities are denominated in kunas, the Company and Group actively manage risks by using derivative instruments available on the financial market. The instruments are used according to operating assessments and expected market trends. In this way the assets, liabilities and cash flow are protected from the risk impact. Due to the emergence of exceptional circumstances caused by the COVID-19 pandemic in the first quarter of 2020, potentially strong depreciation pressures against the kuna/ euro currency pair affect the value of euro-denominated long-term debt and contractual forward transactions whose potential negative effects are sought to be controlled by the proactive management of agreed derivative financial instruments. In the event of a drastic decrease of euro inflows, the Company and the Group will use existing euro liquidity reserves to service the long term debt repayments and make adequate use of financial protection instruments, in accordance with the current state and future assessment of the Company's and the Group's foreign exchange position, expectations of movements in the value of the kuna/euro currency pair as well as other intercurrent relationships among world currencies.
Variable rate loans expose the Company and Group to cash flow interest rate risk. Actively, the Company and Group resort to derivative instruments in order to hedge cash flow and interest rate by applying interest rate swaps. The economic effect of such swaps is the conversion of variable interest rate loans into fixed interest rate loans for a precommitted hedged part of the loan principal. Therefore, a major part of the loan portfolio (over 80%) is comprised of long-term fixed interest loans or, respectively, loans hedged by a derivative instruments (IRS). The Company and Group have interest-bearing assets (cash assets and deposits) so their revenue and cash flow depend on changes in market interest rates. This becomes evident especially during the season when the Company and Group have significant cash surpluses at their disposal. The Company and the Group expect a limited impact from the increased interest rate volatility consequent to the recent coronavirus pandemic, since a large portion of the Group's loan portfolio (84%) is made up of long-term fixed-rate loans, i.e. loans protected by derivative instruments (IRS).
Credit risk arises from cash assets, time deposits and receivables. According to the Company and Group sales policy, business transactions are conducted only with customers with suitable credit history, i.e. by agreeing advances, bank securities and (for individual customers) payments made through major credit card companies. In order to reduce credit risk, the Company and the Group continuously monitor their exposure to the business parties and their creditworthiness, obtain instruments for securing receivables (bills of exchange, debentures and guarantees), thus reducing the risks of uncollectability of their receivables for the services provided. In view of the negative effects of COVID-19 on the customers of the Company and the Group, especially tour operators and travel agencies, the impact of the currently unfavorable circumstances on the related parties is being closely monitored, while actively reviewing the credit ratings and their potential to overcome current challenges.
The Company and Group hold equity securities and are exposed to equity price risk due to security price volatility. Valamar Riviera is not an active participant in the market trade in terms of trading in equity and debt securities. However, with investments in buying Imperial Riviera and Helios Faros shares, the company is exposed to the said risk to a certain extent.
The Company and Group have a sound liquidity risk management. Sufficient funds for meeting liabilities are available at any given moment through adequate amounts from contracted credit lines and by ensuring credit line availability in the future. Liquidity risk is managed by generating strong positive net operating cash flows, while capital investments are financed by credit lines. Credit lines for 2020 have been contracted with reputable financial institutions, while credit repayments in general are in line with the period of significant cash inflows from operating activities. The repayment of the major credit lines coincides with periods of strong cash inflows from operations. The Company and Group monitor the level of available funds through daily cash and debt reports. Long-term cash flow forecasts as well as annual (monthly) forecasts are based on the set budget. After meeting the needs of working capital management the surplus is deposited in the treasury. From there the funds are invested in interest-bearing current accounts, time deposits, money market deposit accounts and marketable securities. Only instruments with suitable maturities and sufficient liquidity are selected, according to the forecast needs for liquid funds. COVID-19 pandemic, as an external stressor to the operations of the Company and the Group, will create uncertain pressures on operating cash flow. In accordance with prudent management of the now increased liquidity risk, escalation plans for minimizing costs, maintaining liquidity, solvency of the company and maintaining business continuity were developed and activated, together with applications for support measures and assistance to the economy and the tourism sector, including temporary deferral of payment of overdue principal on long-term loans in accordance with the given opportunity of a moratorium on the repayment of credit obligations.
The market value of shares is the riskiest asset class due to its volatility resulting from the volatile nature of the whole capital market, macroeconomic trends on markets where the Company and Group operate and discrepancies between the expectations of financial analysts and the actual results. Furthermore, other contributing factors are also changes in the dividend policy, various activities in the segment of consolidations, mergers, acquisitions and forming of strategic partnership, the instability of the business model of the Company and Group as well as the fluctuations in the financial results for the Company and Group. In case any negative implications happen to be associated with these factors there is a considerable risk of market value drop that will in turn prevent investors from selling their shares at a fair market price.
The Company and Group are constantly exposed to risks threatening its competitiveness and future stability. Since the Company and Group own real estate, this business model requires a large amount of capital in order to maintain high product and service standards. Various large capital investments in the upgrade of products and services can surpass budget expectations, delay the end of construction works, as well as the townplanning regulations and fiscal policy may be changed. These risks can increase costs for the Company and Group, and have a negative impact on the cash flow and revenues. In the previous period, the company and Group's business decisions improved their results and operating efficiency in the demanding Mediterranean market. These positive trends are expected to continue in the future through a prudent long-term strategic management.
Over 95% of Valamar Riviera's guests come from other countries and they are very careful when choosing their vacation destination in the competitive Mediterranean environment. Stable domicile countries macroeconomic indicators are important decision-making factors especially those relating to exchange rates and the price of goods and services because they directly affect the guests' purchasing power. However small, the share of domestic guests is also important; it is a segment directly influenced by various other macroeconomic indicators: employment/ unemployment rate, GNP rise/ fall, industrial production and others. They all have a direct impact not only on the purchasing power of Croatian residents but they also determine whether they will choose to spend their vacation on the Adriatic.
When considering risks related to the tourism and hospitality industry, in previous years, the Croatian economy has been afflicted by the consequences of a global financial crisis and economic standstill. In this period, the tourism and hospitality industry has been among the rare growing industries in Croatia. Moreover, the marked seasonality of this industry leads to insufficient use of the Company and Group's resources. After joining the European Union, the Croatian market became part of a large European market, while safety risks decreased after joining the NATO. The Croatian Tourism Development strategy until 2020 (a government document published in the Official Gazette no. 55/13) defines the kind of tourism Croatia wants and needs to develop using the country's comparative advantages and expertise in order to improve the competitiveness of Croatian tourism. Maintaining the current tourism growth rates in the following years is of vital importance. It can be achieved by strategically developing tourism products and investing in the creation of additional values, which will help distinguish Croatian tourism from its competitors by emphasizing its uniqueness, appeal and quality.
Good management of human resources is vital for the future growth of the Company and Group. Risks related to shortages of specific skills, expertise and jobs are connected with the opening and expansion of the labor market. Valamar Riviera is one of the largest and most desirable employers in tourism. The active approach towards HR management develops key talents and supports investments in training opportunities. We determine the needs for new skills and expertise by following emerging global trends in tourism. In this way, we are able to respond to challenges effectively. Through a continual dialogue with our social partners, we have ensured a high level of workers' rights in terms of competitive salaries, reward systems, career development, employees' wellbeing and cooperation with training institutions from all parts of Croatia.
Operational risks are risks connected with direct or indirect losses that arise form inadequate or wrong internal or external processes within the Company and the Group. They include the creation and analysis of financial reporting data (also known as "financial reporting risk") and also the potential insufficient and inadequate internal and external information sharing. When implementing the system of operational risk management, the Company and Group focused on its continuity and complexity due to the size of the organization. The benefits of the system include i) defining and identifying the Company and Group risk profile in relation to the operating risk ii) identifying and managing the known risk occurrences in order to decrease the Company and Group costs and iii) data analysis which indicates the business trends for the Company and Group and trends in the domestic economy.
The Company and Group are aware of the reliability of IT business solutions and safety in the cyber world. Hence, they continually upgrade, develop and implement new technologies in everyday business operations. A special focus is given to providing sufficient resources for the development and implementation of new technologies related to ICT, data protection, and upgrade of the current business systems and implementation of new ones.
Despite improved security and political conditions, which have encouraged to a certain extent investments into tourism and hospitality, there are challenges that the Croatian tourism has to face, such as:
Environmental risks can also have an adverse effect on the Company and Group's business results, primarily in terms of customer satisfaction with the whole experience while staying at one of Valamar's properties and this can affect the number of arrivals. The possible risks can include: sea pollution (caused by oil or chemical spillage), but also long-term water quality reduction and coast pollution due to inadequate waste disposal and waste water treatment as well as extensive use of agricultural fertilizers. Other environmental conditions typical for climate changes such as long drought
periods or long rainy periods can directly influence the guests' length of stay in the hotels and campsites as well as increasing the operating costs. A number of other natural disasters and calamities (earthquakes, fires, floods and rainstorms), air pollution caused by toxic gas emissions from industrial plants and vehicles, as well excessive urbanization and the introduction of invasive species should also be taken into consideration. Likewise, disease outbreaks and pandemics can adversely affect Valamar's business results. In order to minimize their impact, Valamar is actively tracking pandemic and health risk levels worldwide, especially on its source markets, and taking proactive steps in their management. The COVID-19 pandemic is a recent example of the operational and financial disruption to the global economy, especially tourism flows, since almost all global destinations are blocked by restrictions or complete travel bans. The emergence of exceptional circumstances in the Republic of Croatia and the introduction of extraordinary measures to prohibit gatherings, movements and the operation of restaurants and shops, all with the primary objective of protecting the population from the risk of contagion, resulted in the expected consequential and immediate disruption of the Company's and the Group's operations, cancellation of accommodation and other contracted services by partner agencies and guests.
Changes in tax laws and other regulations pose a very serious threat and represent a demanding segment in risk management because in this particular situation the possibilities for the Company and Group are limited. In previous years, there has been a number of important changes in tax and non-tax charging regulations, which have adversely affected the Company and Group profitability:
• In March 2012 the standard VAT rate grew from 23% to 25%, in January 2013 a new 10% VAT rate was introduced only to be replaced within a year by a 13% VAT rate applicable to the tourism and hospitality industry (January 2014), while in January 2017 a new 25% VAT rate was introduced for F&B (a la carte) services;
• In May 2012 the health insurance employer contribution rate fell from
15% to 13% and then in April 2014 it grew back to 15%;
• Frequent increases in various fees and charges regarding water distribution, waste disposal and the like;
• Tourist tax increase in 2018 ranging between HRK 2.5 and HRK 8.0 per person per overnight, depending on the class of the destination and utilization period;
• In January 2020 the VAT rate for a la carte food services was reduced from 25% to 13%.
Such frequent changes in laws regulating taxes and parafiscal charges often take place only after the business policy and budget for the next financial year have been approved and commercial terms and conditions with partners agreed. All this jeopardizes the Company and Group financial position and future investment plans as well as credibility towards shareholders. The Company and Group are also threatened by changes in regulations governing concession fees for maritime domain and tourism land use, the latter still presenting unresolved legal issues. Given the nature of the Company and Group's business, the right to use parts of the maritime domain as well as land for tourism purposes is of vital importance for future growth, especially for campsite-related operations.
The Company and the Group continuously strive to develop and operate according to good practices of corporate governance. The business strategy, corporate policy, key corporate regulations and business practice have set a high standard of corporate governance and are all geared towards creating a transparent and efficient business operation while forging solid bonds with the local community. The Management Board fully complies with the provisions of the adopted Corporate Governance Act. After the company was listed on the regulated market of the Zagreb Stock Exchange, the Company has also complied with the Zagreb Stock Exchange Governance Code. The Company respects and implements the prescribed corporate governance measures (as reported in detail in the prescribed annual questionnaire and published as prescribed on the Zagreb Stock Exchange and Valamar Riviera websites). The Company has harmonized in a significant part its corporate governance acts with the new Corporate Governance Code in the applicable extent.
Since the beginning of the COVID-19 pandemic, Valamar Riviera has actively engaged in mitigating and controlling potential risks. On 2 March 2020 it formed the Risk Management Committee and adopted the Risk Management Rules. The Committee, tasked with assessing risk events and impacts on operations, guests and employees, determines the measures necessary to protect guests, employees and assets and organize business processes and operations. Depending on circumstances and risk intensity, the Committee decides on: adjusting the financial, business and contingency plan, the activation of escalation plans to safeguard company liquidity and solvency and maintain business continuity, and on other measures according to booking and revenue estimates. The Supervisory Board Presidium receives the Committee's reports on the current state, activities and estimated risk impact on the Company's operations at least once a month or more often as circumstances dictate. The Risk Management Committee consists of the Management Board (Željko Kukurin, President and Marko Čižmek, Member), Division Vice Presidents (Alen Benković, Davor Brenko, Ivana Budin Arhanić and David Poropat), Human Resources Director (Ines Damjanić Šturman) and Legal Affairs Head (Vesna Tomić).
The major direct Valamar's shareholders according to the Central Depository and Clearing Company data and the shareholders whom are Valamar's Management Board and Supervisory Board members are as follows: the Chairman of the Supervisory Board, Mr. Gustav Wurmboeck, holds a 100% stake in Wurmböck Beteiligungs GmbH, which holds 25,017,698 RIVP-R-A shares; the Deputy
TIMELY AND ACTIVE APPROACH TO CRISIS MANAGEMENT CAUSED BY THE COVID-19 PANDEMIC
Chairman of the Supervisory Board, Mr. Franz Lanschuetzer, holds 4,437,788 RIVP-R-A shares; the Deputy Chairman of the Supervisory Board, Mr. Mladen Markoč, holds 17,000 RIVP-R-A shares; the Member of the Supervisory Board Mr. Georg Eltz holds a total of 6,545,367 RIVP-R-A shares, of which directly 20,463 RIVP-R-A shares, and indirectly through a 100% stake in company Satis d.o.o. 6,524,904 RIVP-R-A shares; the President of the Management Board, Mr. Željko Kukurin, holds 126,360 RIVP-R-A shares; and the Member of the Management Board Mr. Marko Čižmek holds 53,128 RIVP-R-A shares. The Company defined the process of preparing and disclosing financial reports in a detailed internal document. With this, the financial reporting procedure is set within a system of internal review and risk management. Moreover, in order to monitor and mitigate the financial reporting risk, the Company uses the measures described in "The Risks of the Company and the Group".
The Companies Act and the Company Statute define the General Assembly's authority and prescribe how it meets and works. The meeting invitation, proposals and the adopted resolutions are made public according to the provisions of the Companies Act, Capital Market Act and the Zagreb Stock Exchange Rules. There is a time limit related to the voting right at the General Assembly: according to the provisions of the Croatian Companies Act, shareholders are required to register their participation within the prescribed time limit in order to attend the General Assembly. Under no circumstances can the financial right arising from securities be separated from holding the securities. There are no securities with special control rights nor are there any limitations to voting rights at the Company (one share, one vote).
The Company Statute complies with the Croatian Companies Act and the provisions of the Procedure of appointment, i.e. the election and profile of the Management Board and the Supervisory Board and defines the procedure of appointing and recalling members of the Management Board and Supervisory Board. There are no limitations based on gender, age, education, profession or similar. The Companies Act determines any amendments to the Company Statute, without any additional limitations. The Management Board members' authority fully complies with the regulations prescribed by the Companies Act.
The Company acquires treasury shares based on and in accordance with the conditions determined by the General Assembly's decision on acquisition of treasury shares dated on 9 May 2019 which is in force as of 17 November 2019. The Company does not have a share-buyback program or an employee share ownership plan. The Company holds and acquires treasury shares as a form of CORPORATE GOVERNANCE /continued
rewarding the Management and key managers pursuant to the Company acts on the long-term reward plan and for the purpose of dividend payout in rights - Company share to the equity holders. During first quarter of 2021 the Company wasn't involved in treasury shares acquisition neither disposal of its own shares.
Management Board: Mr. Željko Kukurin, President of the Management Board, and Mr. Marko Čižmek, Member of the Management Board.
Pursuant to the provisions of the Capital Market Act and Regulation (EU) no. 596/2014, the Company has determined its 2020 senior management, consisting of the key company management: four vice presidents: Alen Benković, Davor Brenko, Ivana Budin Arhanić and David Poropat; and 23 sector directors and managers: Ines Damjanić Šturman, Tomislav Dumančić, Ljubica Grbac, Flavio Gregorović, Marin Gulan, Vlastimir Ivančić, Željko Jurcan, Ivan Karlić, Dario Kinkela, David Manojlović, Mile Pavlica, Tomislav Poljuha, Mirella Premeru, Bruno Radoš, Sandi Sinožić, Martina Šolić, Andrea Štifanić, Mauro Teković, Dragan Vlahović, Ivica Vrkić, Mario Skopljaković, Marko Vusić i Vesna Tomić.
Supervisory Board: Mr. Gustav Wurmböck - Chairman, Mr. Franz Lanschützer - Deputy Chairman, Mr. Mladen Markoč - Deputy Chairman, and members: Mr. Georg Eltz, Mr. Hans Dominik Turnovszky, Mr. Vicko Ferić, and Mr. Valter Knapić (employee representative).
In order to perform efficiently its function and duties as prescribed by the Audit Act and the Corporate Governance Act, the Supervisory Board has formed the following bodies:
Presidium of the Supervisory Board: Mr. Gustav Wurmböck - Chairman, and members: Mr. Franz Lanschützer and Mr. Mladen Markoč.
Audit Committee: Mr. Georg Eltz - Chairman, and members: Mr. Franz Lanschützer, Mr. Mladen Markoč, Mr. Vicko Ferić, Mr. Gustav Wurmböck and Mr. Hans Dominik Turnovszky.
Investment Committee: Mr. Franz Lanschützer - Chairman and members: Mr. Georg Eltz, Mr. Vicko Ferić, Mr. Hans Dominik Turnovszky, and Mr. Gustav Wurmböck.
Compliant to effective regulations and Company by laws, the Management and Supervisory Board primarily act through meetings and by correspondence in their decision-making. A more detailed overview of the meetings of the Supervisory Board and the Committees of the Supervisory Board and reports on their work are presented in the Report to the General Assembly of Valamar Riviera on the performed supervision of business operations for 2020. In addition to the employment contract of the President and member of the Management Board with the Company concluded in 2018 for the term of office and the employment contract of the Supervisory Board member, employee representative, with the Company concluded for an indefinite period, between members of the Management Board and between members of the Supervisory Board and the Company no other contracts or agreements have been concluded.
Valamar Collection Isabella Resort 4*/5*, Poreč
Transactions with affiliated companies within the Group are carried out under normal commercial conditions and terms and with the application of market prices.
In the first quarter of 2021, HRK 1.5 million of revenue from transactions with related parties was generated (HRK 5.2 million in 2020) for the Company and HRK 238 thousand (HRK 208 in 2020) for the Group. Expenses amounted to HRK 241 thousand (2020: HRK 267 thousand) for the Company and HRK 133 thousand for the Group. (2020 HRK 28 thousand).
Balance of receivables and liabilities to related parties as at 31.3.2021. amounts to: receivables for the Company HRK 872 thousand (end of 2020 HRK 546 thousand) and HRK 186 thousand for the Group (end of 2020 HRK 331 thousand). Liabilities for the Company amount to HRK 166 thousand (HRK 220 thousand at the end of 2020) while there were none for the Group (HRK 84 thousand at the end of 2020).
The following subsidiaries were registered on 2 September 2011: Podružnica za turizam RABAC, with registered office in Rabac, Slobode 80, Podružnica za turizam ZLATNI OTOK, with registered office in Krk, Vršanska 8. The following branch office was registered on 4 October 2013: Podružnica za turizam DUBROVNIK BABIN KUK, with registered office in Dubrovnik, Vatroslava Lisinskog 15a. The following branch office was registered on 1 October 2014: Podružnica za savjetovanje u vezi s poslovanjem i upravljanjem ZAGREB, with registered office in Zagreb, Miramarska 24. The following branch office was registered on 1 April 2017: Podružnica za turizam BRIONI, with registered office in Pula, Puntižela 155.
The subsidiaries of Rabac, Zlatni otok, Dubrovnik-Babin kuk and Brioni are the drivers of economic growth in their local communities. They operate at their destinations and support their development by promoting further investments and the development of tourism while participating in social and business activities.
The Company also established offices on Rab island, in Makarska and in Stari Grad on the Hvar island to increase the efficiency and streamline the management of operations as determined by the provisions of the concluded Hotel management contracts with Imperial Riviera d.d. and Helios Faros d.d
Performance of Valamar Riviera's share and Zagreb Stock Exchange and travel and leisure indices
During the first quarter of 2021, the highest achieved share price in regular trading on the regulated market was HRK 32.60 and the lowest HRK 28.20. Although by mid-January RIVP shares recorded the largest growth compared to all indices shown in the graph, the rest of the quarter was marked by pressure on the share price as a result of further uncertainties regarding the COVID-19 pandemic. Thus, the RIVP share closed the first quarter at the level of HRK 28.80, which is a decrease of 2.7% compared to the last price on 31 December 2020. With an average regular turnover of HRK 0.8 million per day17, the Valamar Riviere share was the most traded share on the Zagreb Stock Exchange during the first quarter of 2021.
Apart from the Zagreb Stock Exchange indices and ADRIAprime joint Zagreb and Ljubljana Stock Exchanges equity index, the share is also part of the Vienna Stock Exchange indices (CROX18 and SETX19) and Warsaw Stock Exchange index (CEEplus20), the regional SEE Link indices (SEELinX and SEELinX EWI)21 and the world's MSCI Frontier Markets Index. Zagrebačka banka d.d. and Interkapital vrijednosni papiri d.o.o. are responsible for the market making in ordinary Valamar Riviera shares listed on the Prime Market of the Zagreb Stock Exchange.
The Company did not acquire or dispose of its own shares in the period from January 1, 2021 to March 31, 2021. As of March 31, 2021 the Company holds 4,139,635 treasury shares, which is 3.28% of the share capital.
Valamar Riviera is active in holding meetings, presentations and conference calls with domestic and foreign investors. This approach supports high-level transparency, creates additional liquidity, increases share value and the involvement of potential investors. Valamar Riviera will continue with this active approach to grow further value for all its stakeholders so the Company's share can be recognized as one of the market leaders on the Croatian capital market and in the CEE region.
1st MOST ACTIVE TRADED SHARE ON ZAGREB STOCK EXCHANGE
The Management Board expresses its gratitude to all shareholders, business partners, and guests for their support and trust, and particularly to all employees for their contribution.
On 20 April 2021 Integrated Annual Report and Corporate Social Responsibility for 2020 was published, which also includes a non-financial report. The main goal of the report, prepared in accordance with the Standards of the Global Reporting Initiative (GRI), is to further present the strategic and long-term insight into the company's operations to all key stakeholders, including shareholders, employees, partners, guests and the wider community with special focus on sustainable business as a basis for further development of the company. The report also includes environmental, social and management factors in line with the ESG components of responsible investment. The report is available on the websites of the Zagreb Stock Exchange and Valamar Riviera: www.valamar-riviera.com.
As one of the largest employers in Croatia (as of March 31, 2021, the Group employed a total of 2,241 employees, of which 1,995 permanent, and the Company 1,839 employees, of which 1,629 permanent), the Company and the Group systematically and continuously invest in the development of their human resources through a comprehensive strategic approach to their management that includes a transparent recruitment process, clear goals, measuring employee performance and investing in employee development, as well as their careers, and encouraging two-way communication.
In the course of the first quarter of 2021 the Company's Management Board managed and represented the company pursuant to regulations and the provisions of the Company Statute, and planned a business policy that was implemented with prudent care. The Company's Management Board will continue to undertake all the necessary measures in order to ensure sustainability and business growth. The quarterly separate and consolidated financial statements for the first quarter of 2021 were adopted by the by the Management Board on 28 April 2021. The Management Board expresses its gratitude to all shareholders, business partners, and guests for their support and trust, and particularly to all employees for their contribution.
This report contains certain outlook based on currently available facts, findings and circumstances and estimates in this regard. Our outlook is based on a) results achieved in the first three months of 2021; b) operating results achieved by 28 April 2021; c) current booking status; d) April-May business results forecast; e) temporary business suspension up to end of May; f) currently adopted set of aid measures by the Croatian government, Croatian National Bank, Croatian Bank for Reconstruction and Development, competent ministries as well as state and local authorities; g) the absence of further significant negative effects of the risks to which the Company and the Group are exposed.
Outlook statements are based on currently available information, current assumptions, forward-looking expectations and projections. This outlook is not a guarantee of future results and is subject to future events, risks, and uncertainties, many of which are beyond the control of, or currently unknown to Valamar Riviera, as well as potentially incorrect assumptions that could cause the actual results to materially differ from the said expectations and forecasts. Risks and uncertainties include, but are not limited to those described in the chapter "Risks of the Company and the Group". Materially significant deviations from the outlook may arise from changes in circumstances, assumptions not being realized, as well as other risks, uncertainties, and factors, including, but no limited to:
preferences, trust in and satisfaction with Valamar Riviera's products and services;
Should materially significant changes to the stated outlook occur, Valamar Riviera shall immediately inform the public thereof, in compliance with Article 459 of the Capital Market Act. The given outlook statements are not an outright recommendation to buy, hold or sell Valamar Riviera's shares.
In accordance with provisions of Law on Capital Market, Marko Čižmek, Management board member responsible for finance, treasury and IT business as well as relations with institutional investors and Ljubica Grbac director of Department of Finance and Accounting, procurator and person responsible for finance and accounting, together as persons responsible for the preparation of quarterly financial reports of the company VALAMAR RIVIERA d.d. seated in Poreč, Stancija Kaligari 1, OIB 36201212847 (hereinafter: Company), hereby make the following
Marko Čižmek Član Uprave
Ljubica Grbac Direktor Sektora / Prokurist
BUSINESS RESULTS 1/1/2021 - 31/3/2021
| Year: | 2021 | |||
|---|---|---|---|---|
| Quarter: | 1 | |||
| Registration number (MB): | 3474771 | Issuer's home Member State code: | HR | |
| Entity's registration number (MBS): | 40020883 | |||
| Personal identification number (OIB): | 36201212847 | LEI: | 529900DUWS1DGNEK4C68 | |
| Institution code: | 30577 | |||
| Name of the issuer: | Valamar Riviera d.d. | |||
| Postcode and town: | 52440 | Poreč | ||
| Street and house number: | Stancija Kaligari 1 | |||
| E-mail address: | [email protected] | |||
| Web address: | www.valamar-riviera.com | |||
| Number of employees (end of the reporting period): |
2243 | |||
| Consolidated report: | KD | (KN-not consolidated/KD-consolidated) | ||
| Audited: | RN | (RN-not audited/RD-audited) | ||
| Names of subsidiaries (according to IFRS): |
Registered office: | MB: | ||
| Valamar Obertauern GmbH | Obertauern | 195893 D | ||
| Valamar A GmbH | Tamsweg | 486431 S | ||
| Palme Turizam d.o.o. | Dubrovnik | 2006103 | ||
| Magične stijene d.o.o. | Dubrovnik | 2315211 | ||
| Bugenvilia d.o.o. | Dubrovnik | 2006120 | ||
| Imperial Riviera d.d. | Rab | 3044572 | ||
| Bookkeeping firm: | No | |||
| Contact person: | Sopta Anka | |||
| (only name and surname of the contact person) | ||||
| Telephone: | 052 408 188 | |||
| E-mail address: | [email protected] | |||
| Audit firm: | ||||
| (name of the audit firm) | ||||
| Certified auditor: | (name and surname) | |||
M.P. (potpis osobe ovlaštene za zastupanje)
| ADP | Last day of the pre | At the reporting date | |
|---|---|---|---|
| Item 1 |
code 2 |
ceding business year 3 |
of the current period 4 |
| A) RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID | 001 | ||
| B) FIXED ASSETS (ADP 003+010+020+031+036) | 002 | 6.087.157.859 | 6.033.098.018 |
| I INTANGIBLE ASSETS (ADP 004 to 009) | 003 | 46.400.186 | 43.390.899 |
| 1 Research and development | 004 | ||
| 2 Concessions, patents, licences, trademarks, software and other rights | 005 | 37.551.928 | 33.885.470 |
| 3 Goodwill | 006 | 6.567.609 | 6.567.609 |
| 4 Advances for the purchase of intangible assets | 007 | ||
| 5 Intangible assets in preparation | 008 | 2.280.649 | 2.937.820 |
| 6 Other intangible assets | 009 | ||
| II TANGIBLE ASSETS (ADP 011 to 019) 1 Land |
010 011 |
5.662.917.241 976.429.207 |
5.553.940.930 983.239.748 |
| 2 Buildings | 012 | 3.560.463.801 | 3.478.932.030 |
| 3 Plant and equipment | 013 | 488.743.200 | 464.711.846 |
| 4 Tools, working inventory and transportation assets | 014 | 116.542.756 | 107.621.007 |
| 5 Biological assets | 015 | ||
| 6 Advances for the purchase of tangible assets | 016 | 988.061 | 592.074 |
| 7 Tangible assets in preparation | 017 | 443.016.063 | 453.563.811 |
| 8 Other tangible assets | 018 | 72.791.725 | 61.768.300 |
| 9 Investment property | 019 | 3.942.428 | 3.512.114 |
| III FIXED FINANCIAL ASSETS (ADP 021 to 030) | 020 | 46.430.294 | 46.201.064 |
| 1 Investments in holdings (shares) of undertakings within the group | 021 | ||
| 2 Investments in other securities of undertakings within the group | 022 | ||
| 3 Loans, deposits, etc. to undertakings within the group | 023 | ||
| 4 Investments in holdings (shares) of companies linked by virtue of participating interests | 024 | 46.054.207 | 45.802.816 |
| 5 Investment in other securities of companies linked by virtue of participating interests 6 Loans, deposits etc. to companies linked by virtue of participating interests |
025 026 |
||
| 7 Investments in securities | 027 | 147.054 | 174.031 |
| 8 Loans, deposits, etc. given | 028 | 89.033 | 84.217 |
| 9 Other investments accounted for using the equity method | 029 | ||
| 10 Other fixed financial assets | 030 | 140.000 | 140.000 |
| IV RECEIVABLES (ADP 032 to 035) | 031 | ||
| 1 Receivables from undertakings within the group | 032 | ||
| 2 Receivables from companies linked by virtue of participating interests | 033 | ||
| 3 Customer receivables | 034 | ||
| 4 Other receivables | 035 | ||
| V DEFERRED TAX ASSETS | 036 | 331.410.138 | 389.565.125 |
| C) CURRENT ASSETS (ADP 038+046+053+063) | 037 | 737.066.269 | 522.680.836 |
| I INVENTORIES (ADP 039 to 045) 1 Raw materials and consumables |
038 039 |
30.335.208 29.329.354 |
32.152.094 31.284.027 |
| 2 Work in progress | 040 | ||
| 3 Finished goods | 041 | ||
| 4 Merchandise | 042 | 973.867 | 830.509 |
| 5 Advances for inventories | 043 | 31.987 | 37.558 |
| 6 Fixed assets held for sale | 044 | ||
| 7 Biological assets | 045 | ||
| II RECEIVABLES (ADP 047 to 052) | 046 | 40.184.920 | 28.644.637 |
| 1 Receivables from undertakings within the group | 047 | ||
| 2 Receivables from companies linked by virtue of participating interests | 048 | 1.598.603 | 185.750 |
| 3 Customer receivables | 049 | 23.776.150 | 22.230.753 |
| 4 Receivables from employees and members of the undertaking | 050 | 297.549 | 640.583 |
| 5 Receivables from government and other institutions | 051 | 10.162.443 | 2.288.842 |
| 6 Other receivables | 052 | 4.350.175 | 3.298.709 |
| III CURRENT FINANCIAL ASSETS (ADP 054 to 062) 1 Investments in holdings (shares) of undertakings within the group |
053 054 |
613.241 | 624.294 |
| 2 Investments in other securities of undertakings within the group | 055 | ||
| 3 Loans, deposits, etc. to undertakings within the group | 056 | ||
| 4 Investments in holdings (shares) of companies linked by virtue of participating interests | 057 | ||
| 5 Investment in other securities of companies linked by virtue of participating interests | 058 | ||
| 6 Loans, deposits etc. to companies linked by virtue of participating interests | 059 | ||
| 7 Investments in securities | 060 | ||
| 8 Loans, deposits, etc. given | 061 | 613.241 | 583.117 |
| 9 Other financial assets | 062 | 41.177 | |
| IV CASH AT BANK AND IN HAND | 063 | 665.932.900 | 461.259.811 |
| D) PREPAID EXPENSES AND ACCRUED INCOME | 064 | 55.358.952 | 41.031.628 |
| E) TOTAL ASSETS (ADP 001+002+037+064) | 065 | 6.879.583.080 | 6.596.810.482 |
F) OFF-BALANCE SHEET ITEMS 066 54.261.380 54.234.377
| ADP | Last day of the pre | At the reporting date | |
|---|---|---|---|
| Item 1 |
code 2 |
ceding business year 3 |
of the current period 4 |
| LIABILITIES | |||
| A) CAPITAL AND RESERVES (ADP 068 to 070+076+077+083+086+089) | 067 | 2.863.857.326 | 2.736.466.652 |
| I INITIAL (SUBSCRIBED) CAPITAL | 068 | 1.672.021.210 | 1.672.021.210 |
| II CAPITAL RESERVES | 069 | 5.223.432 | 5.223.432 |
| III RESERVES FROM PROFIT (ADP 071+072-073+074+075) | 070 | 98.511.512 | 98.247.550 |
| 1 Legal reserves | 071 | 83.601.061 | 83.601.061 |
| 2 Reserves for treasury shares | 072 | 136.815.284 | 136.815.284 |
| 3 Treasury shares and holdings (deductible item) | 073 | -124.418.267 | -124.418.267 |
| 4 Statutory reserves | 074 | ||
| 5 Other reserves | 075 | 2.513.434 | 2.249.472 |
| IV REVALUATION RESERVES V FAIR VALUE RESERVES AND OTHER (ADP 078 to 082) |
076 077 |
872 | 365.209 |
| 1 Financial assets at fair value through other comprehensive income (i.e. available for sale) | 078 | 872 | 22.909 |
| 2 Cash flow hedge - effective portion | 079 | ||
| 3 Hedge of a net investment in a foreign operation - effective portion | 080 | ||
| 4 Other fair value reserves | 081 | ||
| 5 Exchange differences arising from the translation of foreign operations (consolidation) | 082 | 342.300 | |
| VI RETAINED PROFIT OR LOSS BROUGHT FORWARD (ADP 084-085) | 083 | 715.882.878 | 386.289.372 |
| 1 Retained profit | 084 | 715.882.878 | 386.289.372 |
| 2 Loss brought forward | 085 | ||
| VII PROFIT OR LOSS FOR THE BUSINESS YEAR (ADP 087-088) | 086 | -329.593.506 | -116.451.834 |
| 1 Profit for the business year | 087 | ||
| 2 Loss for the business year | 088 | 329.593.506 | 116.451.834 |
| VIII MINORITY (NON-CONTROLLING) INTEREST | 089 | 701.810.928 | 690.771.713 |
| B) PROVISIONS (ADP 091 to 096) | 090 | 141.118.430 | 135.128.075 |
| 1 Provisions for pensions, termination benefits and similar obligations | 091 | 26.089.854 | 26.089.854 |
| 2 Provisions for tax liabilities | 092 | ||
| 3 Provisions for ongoing legal cases | 093 | 57.420.166 | 51.429.811 |
| 4 Provisions for renewal of natural resources | 094 | ||
| 5 Provisions for warranty obligations | 095 | ||
| 6 Other provisions | 096 | 57.608.410 | 57.608.410 |
| C) LONG-TERM LIABILITIES (ADP 098 to 108) | 097 | 2.867.349.347 | 3.066.420.865 |
| 1 Liabilities to undertakings within the group 2 Liabilities for loans, deposits, etc. of undertakings within the group |
098 099 |
||
| 3 Liabilities to companies linked by virtue of participating interests | 100 | ||
| 4 Liabilities for loans, deposits etc. of companies linked by virtue of participating interests | 101 | ||
| 5 Liabilities for loans, deposits etc. | 102 | ||
| 6 Liabilities to banks and other financial institutions | 103 | 2.770.275.555 | 2.973.115.928 |
| 7 Liabilities for advance payments | 104 | ||
| 8 Liabilities to suppliers | 105 | 98.920 | |
| 9 Liabilities for securities | 106 | ||
| 10 Other long-term liabilities | 107 | 38.781.433 | 36.013.074 |
| 11 Deferred tax liability | 108 | 58.292.359 | 57.192.943 |
| D) SHORT-TERM LIABILITIES (ADP 110 to 123) | 109 | 934.437.190 | 584.741.066 |
| 1 Liabilities to undertakings within the group | 110 | ||
| 2 Liabilities for loans, deposits, etc. of undertakings within the group | 111 | ||
| 3 Liabilities to companies linked by virtue of participating interests | 112 | ||
| 4 Liabilities for loans, deposits etc. of companies linked by virtue of participating interests | 113 | ||
| 5 Liabilities for loans, deposits etc. | 114 | 5.304.000 | 5.304.000 |
| 6 Liabilities to banks and other financial institutions | 115 | 733.061.607 | 399.082.234 |
| 7 Liabilities for advance payments | 116 | 69.608.737 | 86.399.249 |
| 8 Liabilities to suppliers | 117 | 61.808.783 | 45.640.572 |
| 9 Liabilities for securities | 118 | 6.625.196 | |
| 10 Liabilities to employees | 119 | 19.186.775 | 17.190.852 |
| 11 Taxes, contributions and similar liabilities | 120 | 6.130.006 | 5.451.422 |
| 12 Liabilities arising from the share in the result 13 Liabilities arising from fixed assets held for sale |
121 122 |
389.276 | 379.676 |
| 14 Other short-term liabilities | 123 | 32.322.810 | 25.293.061 |
| E) ACCRUALS AND DEFERRED INCOME | 124 | 72.820.787 | 74.053.824 |
| F) TOTAL – LIABILITIES (ADP 067+090+097+109+124) | 125 | 6.879.583.080 | 6.596.810.482 |
| G) OFF-BALANCE SHEET ITEMS | 126 | 54.261.380 | 54.234.377 |
Item ADP code Same period of the previous year Current period Cummulative Quarter Cummulative Quarter 1 2 3 4 5 6 I OPERATING INCOME (ADP 002 to 006) 001 44.980.050 44.980.050 30.169.689 30.169.689 1 Income from sales with undertakings within the group 002 2 Income from sales (outside group) 003 41.384.174 41.384.174 19.822.251 19.822.251 3 Income from the use of own products, goods and services 004 224.405 224.405 73.571 73.571 4 Other operating income with undertakings within the group 005 5 Other operating income (outside the group) 006 3.371.471 3.371.471 10.273.867 10.273.867 II OPERATING EXPENSES (ADP 008+009+013+017+018+019+022+029) 007 275.156.624 275.156.624 189.335.375 189.335.375 1 Changes in inventories of work in progress and finished goods 008 2 Material costs (ADP 010 to 012) 009 48.540.715 48.540.715 25.357.804 25.357.804 a) Costs of raw materials and consumables 010 22.563.650 22.563.650 12.008.385 12.008.385 b) Costs of goods sold 011 41.570 41.570 770.184 770.184 c) Other external costs 012 25.935.495 25.935.495 12.579.235 12.579.235 3 Staff costs (ADP 014 to 016) 013 68.952.553 68.952.553 24.152.815 24.152.815 a) Net salaries and wages 014 44.376.439 44.376.439 12.058.805 12.058.805 b) Tax and contributions from salary costs 015 16.010.002 16.010.002 8.789.853 8.789.853 c) Contributions on salaries 016 8.566.112 8.566.112 3.304.157 3.304.157 4 Depreciation 017 125.476.175 125.476.175 125.010.425 125.010.425 5 Other costs 018 29.240.902 29.240.902 12.369.694 12.369.694 6 Value adjustments (ADP 020+021) 019 203.808 203.808 7.980 7.980 a) fixed assets other than financial assets 020 b) current assets other than financial assets 021 203.808 203.808 7.980 7.980 7 Provisions (ADP 023 to 028) 022 a) Provisions for pensions, termination benefits and similar obligations 023 b) Provisions for tax liabilities 024 c) Provisions for ongoing legal cases 025 d) Provisions for renewal of natural resources 026 e) Provisions for warranty obligations 027 f) Other provisions 028 8 Other operating expenses 029 2.742.471 2.742.471 2.436.657 2.436.657 III. FINANCIAL INCOME (ADP 031 to 040) 030 4.448.573 4.448.573 3.984.175 3.984.175 1 Income from investments in holdings (shares) of undertakings within the group 031 2 Income from investments in holdings (shares) of companies linked by virtue of participating interests 032 3 Income from other long-term financial investment and loans granted to undertakings within the group 033 4 Other interest income from operations with undertakings within the group 034 5 Exchange rate differences and other financial income from operations with undertakings within the group 035 6 Income from other long-term financial investments and loans 036 7 Other interest income 037 44.383 44.383 26.579 26.579 8 Exchange rate differences and other financial income 038 2.193.508 2.193.508 1.257.055 1.257.055 9 Unrealised gains (income) from financial assets 039 1.200.566 1.200.566 10 Other financial income 040 2.210.682 2.210.682 1.499.975 1.499.975 IV FINANCIAL EXPENSES (ADP 042 to 048) 041 88.554.386 88.554.386 31.301.528 31.301.528 1 Interest expenses and similar expenses with undertakings within the group 042 2 Exchange rate differences and other expenses from operations with undertakings within the group 043 3 Interest expenses and similar expenses 044 5.914.754 5.914.754 15.609.099 15.609.099 4 Exchange rate differences and other expenses 045 61.804.791 61.804.791 14.231.918 14.231.918 5 Unrealised losses (expenses) from financial assets 046 19.277.964 19.277.964 6 Value adjustments of financial assets (net) 047 7 Other financial expenses 048 1.556.877 1.556.877 1.460.511 1.460.511 V SHARE IN PROFIT FROM UNDERTAKINGS LINKED BY VRITUE OF PARTICIPATING INTERESTS 049 VI SHARE IN PROFIT FROM JOINT VENTURES 050 VII SHARE IN LOSS OF COMPANIES LINKED BY VIRTUE OF PARTICIPATING INTEREST 051 603.919 603.919 251.392 251.392 VIII SHARE IN LOSS OF JOINT VENTURES 052 IX TOTAL INCOME (ADP 001+030+049+050) 053 49.428.623 49.428.623 34.153.864 34.153.864 X TOTAL EXPENDITURE (ADP 007+041+051+052) 054 364.314.929 364.314.929 220.888.295 220.888.295 XI PRE-TAX PROFIT OR LOSS (ADP 053-054) 055 -314.886.306 -314.886.306 -186.734.431 -186.734.431 1 Pre-tax profit (ADP 053-054) 056 2 Pre-tax loss (ADP 054-053) 057 -314.886.306 -314.886.306 -186.734.431 -186.734.431
| Item | ADP code |
Same period of the previous year |
Current period | |||
|---|---|---|---|---|---|---|
| Cummulative | Quarter | Cummulative | Quarter | |||
| 1 | 2 | 3 | 4 | 5 | 6 | |
| XII INCOME TAX | 058 | -59.243.382 | -59.243.382 | |||
| XIII PROFIT OR LOSS FOR THE PERIOD (ADP 055-059) | 059 | -314.886.306 | -314.886.306 | -127.491.049 | -127.491.049 | |
| 1. Profit for the period (ADP 055-059) | 060 | |||||
| 2. Loss for the period (ADP 059-055) | 061 | -314.886.306 | -314.886.306 | -127.491.049 | -127.491.049 |
| XIV PRE-TAX PROFIT OR LOSS OF DISCONTINUED OPERATIONS (ADP 063-064) |
062 | |
|---|---|---|
| 1 Pre-tax profit from discontinued operations | 063 | |
| 2 Pre-tax loss on discontinued operations | 064 | |
| XV INCOME TAX OF DISCONTINUED OPERATIONS | 065 | |
| 1 Discontinued operations profit for the period (ADP 062-065) | 066 | |
| 2 Discontinued operations loss for the period (ADP 065-062) | 067 |
| XVI PRE-TAX PROFIT OR LOSS (ADP 055+062) | 068 |
|---|---|
| 1 Pre-tax profit (ADP 068) | 069 |
| 2 Pre-tax loss (ADP 068) | 070 |
| XVII INCOME TAX (ADP 058+065) | 071 |
| XVIII PROFIT OR LOSS FOR THE PERIOD (ADP 068-071) | 072 |
| 1 Profit for the period (ADP 068-071) | 073 |
| 2 Loss for the period (ADP 071-068) | 074 |
| XIX PROFIT OR LOSS FOR THE PERIOD (ADP 076+077) | 075 | -314.886.306 | -314.886.306 | -127.491.049 | -127.491.049 |
|---|---|---|---|---|---|
| 1 Attributable to owners of the parent | 076 | -289.721.413 | -289.721.413 | -116.451.834 | -116.451.834 |
| 2 Attributable to minority (non-controlling) interest | 077 | -25.164.893 | -25.164.893 | -11.039.215 | -11.039.215 |
| I PROFIT OR LOSS FOR THE PERIOD | 078 | -314.886.306 | -314.886.306 | -127.491.049 | -127.491.049 |
|---|---|---|---|---|---|
| II OTHER COMPREHENSIVE INCOME/LOSS BEFORE TAX (ADP 080 to 087) |
079 | 38.775 | 38.775 | 105.212 | 105.212 |
| III ITEMS THAT WILL NOT BE RECLASSIFIED TO PROFIT OR LOSS (ADP 081 to 085) |
080 | -92.880 | -92.880 | 26.874 | 26.874 |
| 1 Changes in revaluation reserves of fixed tangible and intangible assets | 081 | ||||
| 2 Gains or losses from subsequent measurement of equity instruments at fair value through other comprehensive income |
082 | ||||
| 3 Fair value changes of financial liabilities at fair value through statement of profit or loss, attributable to changes in their credit risk |
083 | -92.880 | -92.880 | 26.874 | 26.874 |
| 4 Actuarial gains/losses on the defined benefit obligation | 084 | ||||
| 5 Other items that will not be reclassified | 085 | ||||
| 6 Income tax relating to items that will not be reclassified | 086 | -16.718 | -16.718 | 4.837 | 4.837 |
| IV ITEMS THAT MAY BE RECLASSIFIED TO PROFIT OR LOSS (ADP 088 to 095) |
087 | 131.655 | 131.655 | 78.338 | 78.338 |
| 1 Exchange rate differences from translation of foreign operations | 088 | 131.655 | 131.655 | 78.338 | 78.338 |
| 2 Gains or losses from subsequent measurement of debt securities at fair value through other comprehensive income |
089 | ||||
| 3 Profit or loss arising from effective cash flow hedging | 090 | ||||
| 4 Profit or loss arising from effective hedge of a net investment in a foreign operation |
091 | ||||
| 5 Share in other comprehensive income/loss of companies linked by virtue of participating interests |
092 | ||||
| 6 Changes in fair value of the time value of option | 093 | ||||
| 7 Changes in fair value of forward elements of forward contracts | 094 | ||||
| 8 Other items that may be reclassified to profit or loss | 095 | ||||
| 9 Income tax relating to items that may be reclassified to profit or loss | 096 |
| Item | ADP code |
Same period of the previous year |
Current period | ||
|---|---|---|---|---|---|
| Cummulative | Quarter | Cummulative | Quarter | ||
| 1 | 2 | 3 | 4 | 5 | 6 |
| V NET OTHER COMPREHENSIVE INCOME OR LOSS (ADP 080+087- 086 - 096) | 097 | 55.493 | 55.493 | 100.375 | 100.375 |
| VI COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 078+097) | 098 | -314.830.813 | -314.830.813 | -127.390.674 | -127.390.674 |
| VII COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 100+101) | 099 | -314.830.813 | -314.830.813 | -127.390.674 | -127.390.674 |
|---|---|---|---|---|---|
| 1 Attributable to owners of the parent | 100 | -289.665.920 | -289.665.920 | -116.351.459 | -116.351.459 |
| 2 Attributable to minority (non-controlling) interest | 101 | -25.164.893 | -25.164.893 | -11.039.215 | -11.039.215 |
| ADP | Same period of the | Current | |
|---|---|---|---|
| Item | code | previous year | period |
| 1 | 2 | 3 | 4 |
| CASH FLOW FROM OPERATING ACTIVITIES | |||
| 1 Pre-tax profit | 001 | -314.886.306 | -186.734.431 |
| 2 Adjustments (ADP 003 to 010): | 002 | 212.245.512 | 146.862.778 |
| a) Depreciation | 003 | 125.476.175 | 125.010.425 |
| b) Gains and losses from sale and value adjustment of fixed tangible and intangible assets | 004 | -325.923 | -971.047 |
| c) Gains and losses from sale and unrealised gains and losses and value adjustment of | |||
| financial assets | 005 | -13.959 | |
| d) Interest and dividend income | 006 | -21.094 | -19.103 |
| e) Interest expenses | 007 | 7.264.827 | 17.069.611 |
| f) Provisions | 008 | -35.692 | -5.990.355 |
| g) Exchange rate differences (unrealised) | 009 | 61.872.012 | 14.231.918 |
| h) Other adjustments for non-cash transactions and unrealised gains and losses | 010 | 18.029.166 | -2.468.671 |
| I Cash flow increase or decrease before changes in working capital (ADP 001+002) | 011 | -102.640.794 | -39.871.653 |
| 3 Changes in the working capital (ADP 013 to 016) | 012 | 103.617.365 | 426.428 |
| a) Increase or decrease in short-term liabilities | 013 | 98.140.228 | -20.244.744 |
| b) Increase or decrease in short-term receivables | 014 | 10.208.309 | 22.488.059 |
| c) Increase or decrease in inventories | 015 | -5.246.097 | -1.816.887 |
| d) Other increase or decrease in working capital | 016 | 514.925 | 0 |
| II Cash from operations (ADP 011+012) | 017 | 976.571 | -39.445.225 |
| 4 Interest paid | 018 | -6.088.673 | -8.389.842 |
| 5 Income tax paid | 019 | -682.617 | 0 |
| A) NET CASH FLOW FROM OPERATING ACTIVITIES (ADP 017 to 019) | 020 | -5.794.719 | -47.835.067 |
| CASH FLOW FROM INVESTMENT ACTIVITIES | |||
| 1 Cash receipts from sales of fixed tangible and intangible assets | 021 | 2.833.916 | |
| 2 Cash receipts from sales of financial instruments | 022 | 12.621 | |
| 3 Interest received | 023 | 23.867 | 24.185 |
| 4 Dividends received | 024 | ||
| 5 Cash receipts from repayment of loans and deposits | 025 | 6.087 | 34.858 |
| 6 Other cash receipts from investment activities | 026 | ||
| III Total cash receipts from investment activities (ADP 021 to 026) | 027 | 42.575 | 2.892.959 |
| 1 Cash payments for the purchase of fixed tangible and intangible assets | 028 | -291.535.115 | -13.507.884 |
| 2 Cash payments for the acquisition of financial instruments | 029 | ||
| 3 Cash payments for loans and deposits for the period | 030 | -55.486 | |
| 4 Acquisition of a subsidiary, net of cash acquired | 031 | ||
| 5 Other cash payments from investment activities | 032 | ||
| IV Total cash payments from investment activities (ADP 028 to 032) | 033 | -291.590.601 | -13.507.884 |
| B) NET CASH FLOW FROM INVESTMENT ACTIVITIES (ADP 027+033) | 034 | -291.548.026 | -10.614.925 |
| CASH FLOW FROM FINANCING ACTIVITIES | |||
| 1 Cash receipts from the increase in initial (subscribed) capital 2 Cash receipts from the issue of equity financial instruments and debt financial |
035 | ||
| instruments | 036 | ||
| 3 Cash receipts from credit principals, loans and other borrowings | 037 | 371.558.876 | |
| 4 Other cash receipts from financing activities | 038 | 1.598.722 | |
| V Total cash receipts from financing activities (ADP 035 to 038) | 039 | 373.157.598 | |
| 1 Cash payments for the repayment of credit principals, loans and other | |||
| borrowings and debt financial instruments | 040 | -2.115.264 | -145.770.089 |
| 2 Cash payments for dividends | 041 | ||
| 3 Cash payments for finance lease | 042 | -22.102 | |
| 4 Cash payments for the redemption of treasury shares and decrease in initial (subscribed) capital |
043 | ||
| 5 Other cash payments from financing activities | 044 | -949.155 | -430.906 |
| VI Total cash payments from financing activities (ADP 040 to 044) | 045 | -3.064.419 | -146.223.097 |
| C) NET CASH FLOW FROM FINANCING ACTIVITIES (ADP 039+045) | 046 | 370.093.179 | -146.223.097 |
| 1 Unrealised exchange rate differences in respect of cash and cash equivalents | 047 | ||
| D) NET INCREASE OR DECREASE IN CASH FLOWS (ADP 020+034+046+047) | 048 | 72.750.434 | -204.673.089 |
| E) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD | 049 | 550.142.638 | 665.932.900 |
| F) CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD (ADP 048+049) | 050 | 622.893.072 | 461.259.811 |
| Submitter: Valamar Riviera d.d. | in HRK | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Item | ADP code |
Initial (subscribed) capital |
Capital reserves |
Legal reserves |
Reserves for treasury shares |
Treasury shares and holdings (deductible item) |
Statutory reserves |
Other reserves |
Revaluation reserves |
Attributable to owners of the parent Fair value of financial assets through other comprehensive income (availa ble for sale) |
Cash flow hedge - effective portion |
Hedge of a net investment in a foreign operation - effective portion |
Other fair value reserves |
Exchange rate differences from transla tion of foreign operations |
Retained profit / loss brought forward |
Profit/loss for the business year |
Total attributable to owners of the parent 18 (3 to 6 - 7 |
Minority (non-con trolling) interest |
Total capital and reserves |
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | + 8 to 17) | 19 | 20 (18+19) |
| Previous period 1 Balance on the first day of the previous business year 2 Changes in accounting policies |
01 02 |
1.672.021.210 | 5.223.432 83.601.061 136.815.284 124.418.267 | 61.474 | 430.206.412 284.535.940 2.488.046.546 731.023.213 3.219.069.759 | ||||||||||||||
| 3 Correction of errors 4 Balance on the first day of the previous business year (restated) (ADP 01 to 03) 5 Profit/loss of the period |
03 04 05 |
1.672.021.210 | 5.223.432 83.601.061 136.815.284 124.418.267 | 61.474 | 430.206.412 284.535.940 2.488.046.546 731.023.213 3.219.069.759 -329.593.506 -329.593.506 -29.212.285 -358.805.791 |
||||||||||||||
| 6 Exchange rate differences from translation of foreign operations 7 Changes in revaluation reserves of fixed tangible and intangible assets |
06 07 |
263.962 | 263.962 | 263.962 | |||||||||||||||
| 8 Gains or losses from subsequent measurement of financial assets at fair value through other comprehensive income (available for sale) 9 Profit or loss arising from effective cash flow hedge |
08 09 |
-73.904 | -73.904 | -73.904 | |||||||||||||||
| 10 Profit or loss arising from effective hedge of a net investment in a foreign operation 11 Share in other comprehensive income/loss of companies linked by virtue of participating interests |
10 11 |
||||||||||||||||||
| 12 Actuarial gains/losses on the defined benefit obligation 13 Other changes in equity unrelated to owners 14 Tax on transactions recognised directly in equity |
12 13 14 |
13.302 | 13.302 | 13.302 | |||||||||||||||
| 15 Decrease in initial (subscribed) capital (other than arising from the pre bankruptcy settlement procedure or from the reinvestment of profit) 16 Decrease in initial (subscribed) capital arising from the pre-bankruptcy settlement procedure |
15 16 |
||||||||||||||||||
| 17 Decrease in initial (subscribed) capital arising from the reinvestment of profit 18 Redemption of treasury shares/holdings 19 Payments from members/shareholders 20 Payment of share in profit/dividend |
17 18 19 20 |
||||||||||||||||||
| 21 Other distributions and payments to members/shareholders 22 Transfer to reserves according to the annual schedule |
21 22 |
2.249.472 | 1.140.526 | 284.535.940 -284.535.940 | 3.389.998 | 3.389.998 | |||||||||||||
| 23 Increase in reserves arising from the pre-bankruptcy settlement procedure 24 Balance on the last day of the previous business year reporting period (ADP 04 to 23) |
23 24 |
1.672.021.210 | 5.223.432 83.601.061 136.815.284 124.418.267 | 2.513.434 | 872 | 715.882.878 -329.593.506 2.162.046.398 701.810.928 2.863.857.326 | |||||||||||||
| APPENDIX TO THE STATEMENT OF CHANGES IN EQUITY (to be filled in by undertakings that draw up financial statements in accordance with the IFRS) | |||||||||||||||||||
| I OTHER COMPREHENSIVE INCOME OF THE PREVIOUS PERIOD, NET OF TAX (ADP 06 to 14) II COMPREHENSIVE INCOME OR LOSS FOR THE PREVIOUS PERIOD |
25 26 |
263.962 263.962 |
-60.602 -60.602 |
203.360 -329.593.506 -329.390.146 -29.212.285 -358.602.431 |
203.360 | ||||||||||||||
| (ADP 05+25) III TRANSACTIONS WITH OWNERS IN THE PREVIOUS PERIOD RECOGNISED DIRECTLY IN EQUITY (ADP 15 to 23) |
27 | 2.249.472 | 285.676.466 -284.535.940 | 3.389.998 | 3.389.998 | ||||||||||||||
| Current period | |||||||||||||||||||
| 1 Balance on the first day of the previous business year 2 Changes in accounting policies 3 Correction of errors |
28 29 30 |
1.672.021.210 | 5.223.432 83.601.061 136.815.284 124.418.267 | 2.513.434 | 872 | 715.882.878 -329.593.506 2.162.046.398 701.810.928 2.863.857.326 | |||||||||||||
| 4 Balance on the first day of the previous business year (restated) (ADP 28 to 30) 5 Profit/loss of the period |
31 32 |
1.672.021.210 | 5.223.432 83.601.061 136.815.284 124.418.267 | 2.513.434 | 872 | 715.882.878 -329.593.506 2.162.046.398 701.810.928 2.863.857.326 -116.451.834 -116.451.834 -11.039.215 -127.491.049 |
|||||||||||||
| 6 Exchange rate differences from translation of foreign operations 7 Changes in revaluation reserves of fixed tangible and intangible assets |
33 34 |
-263.962 | 342.300 | 78.338 | 78.338 | ||||||||||||||
| 8 Gains or losses from subsequent measurement of financial assets at fair value through other comprehensive income (available for sale) 9 Profit or loss arising from effective cash flow hedge |
35 36 |
26.874 | 26.874 | 26.874 | |||||||||||||||
| 10 Profit or loss arising from effective hedge of a net investment in a foreign operation 11 Share in other comprehensive income/loss of companies linked by virtue of participating interests |
37 38 |
||||||||||||||||||
| 12 Actuarial gains/losses on the defined benefit obligation 13 Other changes in equity unrelated to owners |
39 40 |
||||||||||||||||||
| 14 Tax on transactions recognised directly in equity 15 Decrease in initial (subscribed) capital (other than arising from the pre bankruptcy settlement procedure or from the reinvestment of profit) |
41 42 |
-4.837 | -4.837 | -4.837 | |||||||||||||||
| 16 Decrease in initial (subscribed) capital arising from the pre-bankruptcy settlement procedure |
43 | ||||||||||||||||||
| 17 Decrease in initial (subscribed) capital arising from the reinvestment of profit 18 Redemption of treasury shares/holdings |
44 45 |
||||||||||||||||||
| 19 Payments from members/shareholders | 46 | ||||||||||||||||||
| 20 Payment of share in profit/dividend 21 Other distributions and payments to members/shareholders |
47 48 |
||||||||||||||||||
| 22 Carryforward per annual plane 23 Increase in reserves arising from the pre-bankruptcy settlement procedure |
49 50 |
-329.593.506 329.593.506 | |||||||||||||||||
| 24 Balance on the last day of the previous business year reporting period (ADP 31 to 50) |
51 | 1.672.021.210 | 5.223.432 83.601.061 136.815.284 124.418.267 | 2.249.472 | 22.909 | 342.300 386.289.372 -116.451.834 2.045.694.939 690.771.713 2.736.466.652 | |||||||||||||
| APPENDIX TO THE STATEMENT OF CHANGES IN EQUITY (to be filled in by undertakings that draw up financial statements in accordance with the IFRS) | -263.962 | 22.037 | 342.300 | 100.375 | 100.375 | ||||||||||||||
| I OTHER COMPREHENSIVE INCOME FOR THE CURRENT PERIOD, NET OF TAX (ADP 33 to 41) II COMPREHENSIVE INCOME OR LOSS FOR THE CURRENT PERIOD (ADP 32 to 52) |
52 53 |
-263.962 | 22.037 | 342.300 | -116.451.834 -116.351.459 -11.039.215 -127.390.674 | ||||||||||||||
| III TRANSACTIONS WITH OWNERS IN THE CURRENT PERIOD RECOGNISED DIRECTLY IN EQUITY (ADP 42 to 50) |
54 | -329.593.506 329.593.506 |
(drawn up for quarterly reporting periods)
Name of the issuer: Valamar Riviera d.d.
Personal identification number OIB: 36201212847
Reporting period: 01.01.2021. to 31.03.2021. Notes to financial statements for quarterly periods include:
(drawn up for quarterly reporting periods)
statements have been adopted; the information concerning capital and reserves and the profit or loss may be omitted where the undertaking concerned does not publish its balance sheet and is not controlled by another undertaking
Notes to financial statements for the three month period together with detailed information on financial performance and events relevant to understanding changes in financial statements are available in PDF document "Business results 1/1/2021 – 31/3/2021" which has been simultaneously published with this document on HANFA (Croatian Financial Services Supervisory Agency), Zagreb Stock Exchange and Issuers web pages.
| Year: | 2021 | ||
|---|---|---|---|
| Quarter: | 1 | ||
| Registration number (MB): | 3474771 | HR Issuer's home Member State code: |
|
| Entity's registration number (MBS): | 40020883 | ||
| Personal identification number (OIB): |
36201212847 | LEI: | 529900DUWS1DGNEK4C68 |
| Institution code: | 30577 | ||
| Name of the issuer: | Valamar Riviera d.d. | ||
| Postcode and town: | 52440 | Poreč | |
| Street and house number: | Stancija Kaligari 1 | ||
| E-mail address: | [email protected] | ||
| Web address: | www.valamar-riviera.com | ||
| Number of employees (end of the reporting period): |
1839 | ||
| Consolidated report: | KN | (KN-not consolidated/KD-consolidated) | |
| Audited: | RN | (RN-not audited/RD-audited) | |
| Names of subsidiaries (according to IFRS): |
Registered office: | MB: | |
| Bookkeeping firm: | No | ||
| Contact person: | Sopta Anka | ||
| (only name and surname of the contact person) | |||
| Telephone: | 052 408 188 | ||
| E-mail address: | [email protected] | ||
| Audit firm: | |||
| (name of the audit firm) | |||
| Certified auditor: | |||
| (name and surname) |
M.P. (potpis osobe ovlaštene za zastupanje)
| ADP | Last day of the pre | At the reporting date | |
|---|---|---|---|
| Item | code | ceding business year | of the current period |
| 1 | 2 | 3 | 4 |
| A) RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID B) FIXED ASSETS (ADP 003+010+020+031+036) |
001 002 |
5.324.136.157 | 5.283.168.000 |
| I INTANGIBLE ASSETS (ADP 004 to 009) | 003 | 42.275.329 | 39.268.924 |
| 1 Research and development | 004 | ||
| 2 Concessions, patents, licences, trademarks, software and other rights | 005 | 35.550.820 | 32.033.223 |
| 3 Goodwill | 006 | 6.567.609 | 6.567.609 |
| 4 Advances for the purchase of intangible assets | 007 | ||
| 5 Intangible assets in preparation | 008 | 156.900 | 668.092 |
| 6 Other intangible assets | 009 | ||
| II TANGIBLE ASSETS (ADP 011 to 019) | 010 | 4.292.520.443 | 4.205.713.651 |
| 1 Land | 011 | 629.012.020 | 636.325.770 |
| 2 Buildings | 012 | 2.722.066.344 | 2.661.617.594 |
| 3 Plant and equipment | 013 | 409.245.659 | 389.193.355 |
| 4 Tools, working inventory and transportation assets 5 Biological assets |
014 015 |
91.158.729 | 84.158.898 |
| 6 Advances for the purchase of tangible assets | 016 | 159.973 | 56.964 |
| 7 Tangible assets in preparation | 017 | 366.577.576 | 372.892.671 |
| 8 Other tangible assets | 018 | 70.357.714 | 57.956.285 |
| 9 Investment property | 019 | 3.942.428 | 3.512.114 |
| III FIXED FINANCIAL ASSETS (ADP 021 to 030) | 020 | 774.869.872 | 774.891.929 |
| 1 Investments in holdings (shares) of undertakings within the group | 021 | 727.328.038 | 727.328.038 |
| 2 Investments in other securities of undertakings within the group | 022 | ||
| 3 Loans, deposits, etc. to undertakings within the group | 023 | ||
| 4 Investments in holdings (shares) of companies linked by virtue of participating interests | 024 | 47.191.530 | 47.191.530 |
| 5 Investment in other securities of companies linked by virtue of participating interests | 025 | ||
| 6 Loans, deposits etc. to companies linked by virtue of participating interests | 026 | ||
| 7 Investments in securities | 027 | 121.271 | 148.144 |
| 8 Loans, deposits, etc. given | 028 | 89.033 | 84.217 |
| 9 Other investments accounted for using the equity method | 029 | ||
| 10 Other fixed financial assets | 030 | 140.000 | 140.000 |
| IV RECEIVABLES (ADP 032 to 035) 1 Receivables from undertakings within the group |
031 032 |
||
| 2 Receivables from companies linked by virtue of participating interests | 033 | ||
| 3 Customer receivables | 034 | ||
| 4 Other receivables | 035 | ||
| V DEFERRED TAX ASSETS | 036 | 214.470.513 | 263.293.496 |
| C) CURRENT ASSETS (ADP 038+046+053+063) | 037 | 583.232.857 | 382.869.999 |
| I INVENTORIES (ADP 039 to 045) | 038 | 27.296.274 | 28.917.145 |
| 1 Raw materials and consumables | 039 | 26.356.791 | 28.121.448 |
| 2 Work in progress | 040 | ||
| 3 Finished goods | 041 | ||
| 4 Merchandise | 042 | 939.483 | 795.697 |
| 5 Advances for inventories | 043 | ||
| 6 Fixed assets held for sale | 044 | ||
| 7 Biological assets II RECEIVABLES (ADP 047 to 052) |
045 046 |
32.385.214 | 24.359.040 |
| 1 Receivables from undertakings within the group | 047 | 186.829 | 657.689 |
| 2 Receivables from companies linked by virtue of participating interests | 048 | 330.822 | 185.750 |
| 3 Customer receivables | 049 | 23.158.299 | 19.900.198 |
| 4 Receivables from employees and members of the undertaking | 050 | 277.464 | 621.306 |
| 5 Receivables from government and other institutions | 051 | 4.795.299 | 175.598 |
| 6 Other receivables | 052 | 3.636.501 | 2.818.499 |
| III CURRENT FINANCIAL ASSETS (ADP 054 to 062) | 053 | 578.131 | 619.308 |
| 1 Investments in holdings (shares) of undertakings within the group | 054 | ||
| 2 Investments in other securities of undertakings within the group | 055 | ||
| 3 Loans, deposits, etc. to undertakings within the group | 056 | 28.300 | 28.300 |
| 4 Investments in holdings (shares) of companies linked by virtue of participating interests | 057 | ||
| 5 Investment in other securities of companies linked by virtue of participating interests | 058 | ||
| 6 Loans, deposits etc. to companies linked by virtue of participating interests | 059 | ||
| 7 Investments in securities | 060 | ||
| 8 Loans, deposits, etc. given 9 Other financial assets |
061 062 |
549.831 | 549.831 41.177 |
| IV CASH AT BANK AND IN HAND | 063 | 522.973.238 | 328.974.506 |
| D) PREPAID EXPENSES AND ACCRUED INCOME | 064 | 46.702.706 | 35.933.995 |
| E) TOTAL ASSETS (ADP 001+002+037+064) | 065 | 5.954.071.720 | 5.701.971.994 |
F) OFF-BALANCE SHEET ITEMS 066 54.261.380 54.234.377
| Item | ADP code |
Last day of the preced ing business year |
At the reporting date of the current period |
|---|---|---|---|
| 1 | 2 | 3 | 4 |
| LIABILITIES | |||
| A) CAPITAL AND RESERVES (ADP 068 to 070+076+077+083+086+089) | 067 | 2.385.224.020 | 2.281.279.205 |
| I INITIAL (SUBSCRIBED) CAPITAL | 068 | 1.672.021.210 | 1.672.021.210 |
| II CAPITAL RESERVES | 069 | 5.710.563 | 5.710.563 |
| III RESERVES FROM PROFIT (ADP 071+072-073+074+075) | 070 | 98.247.551 | 98.247.551 |
| 1 Legal reserves | 071 | 83.601.061 | 83.601.061 |
| 2 Reserves for treasury shares | 072 | 136.815.284 | 136.815.284 |
| 3 Treasury shares and holdings (deductible item) | 073 | -124.418.266 | -124.418.266 |
| 4 Statutory reserves | 074 | ||
| 5 Other reserves | 075 | 2.249.472 | 2.249.472 |
| IV REVALUATION RESERVES | 076 | ||
| V FAIR VALUE RESERVES AND OTHER (ADP 078 to 082) | 077 | 872 | 22.909 |
| 1 Financial assets at fair value through other comprehensive income (i.e. available for sale) | 078 | 872 | 22.909 |
| 2 Cash flow hedge - effective portion | 079 | ||
| 3 Hedge of a net investment in a foreign operation - effective portion | 080 | ||
| 4 Other fair value reserves | 081 | ||
| 5 Exchange differences arising from the translation of foreign operations (consolidation) | 082 | ||
| VI RETAINED PROFIT OR LOSS BROUGHT FORWARD (ADP 084-085) | 083 | 917.793.503 | 609.243.824 |
| 1 Retained profit | 084 | 917.793.503 | 609.243.824 |
| 2 Loss brought forward | 085 | ||
| VII PROFIT OR LOSS FOR THE BUSINESS YEAR (ADP 087-088) | 086 | -308.549.679 | -103.966.852 |
| 1 Profit for the business year 2 Loss for the business year |
087 088 |
308.549.679 | 103.966.852 |
| VIII MINORITY (NON-CONTROLLING) INTEREST | 089 | ||
| B) PROVISIONS (ADP 091 to 096) | 090 | 113.213.704 | 107.223.349 |
| 1 Provisions for pensions, termination benefits and similar obligations | 091 | 21.180.405 | 21.180.405 |
| 2 Provisions for tax liabilities | 092 | ||
| 3 Provisions for ongoing legal cases | 093 | 36.378.988 | 30.388.633 |
| 4 Provisions for renewal of natural resources | 094 | ||
| 5 Provisions for warranty obligations | 095 | ||
| 6 Other provisions | 096 | 55.654.311 | 55.654.311 |
| C) LONG-TERM LIABILITIES (ADP 098 to 108) | 097 | 2.524.889.178 | 2.720.595.102 |
| 1 Liabilities to undertakings within the group | 098 | ||
| 2 Liabilities for loans, deposits, etc. of undertakings within the group | 099 | ||
| 3 Liabilities to companies linked by virtue of participating interests | 100 | ||
| 4 Liabilities for loans, deposits etc. of companies linked by virtue of participating interests | 101 | ||
| 5 Liabilities for loans, deposits etc. | 102 | ||
| 6 Liabilities to banks and other financial institutions | 103 | 2.474.586.439 | 2.671.054.324 |
| 7 Liabilities for advance payments | 104 | ||
| 8 Liabilities to suppliers | 105 | ||
| 9 Liabilities for securities | 106 | ||
| 10 Other long-term liabilities | 107 | 36.995.567 | 36.446.253 |
| 11 Deferred tax liability | 108 | 13.307.172 | 13.094.525 |
| D) SHORT-TERM LIABILITIES (ADP 110 to 123) | 109 | 865.350.845 | 524.961.185 |
| 1 Liabilities to undertakings within the group | 110 | 135.664 | 166.117 |
| 2 Liabilities for loans, deposits, etc. of undertakings within the group | 111 | ||
| 3 Liabilities to companies linked by virtue of participating interests 4 Liabilities for loans, deposits etc. of companies linked by virtue of participating interests |
112 113 |
||
| 5 Liabilities for loans, deposits etc. | 114 | ||
| 6 Liabilities to banks and other financial institutions | 115 | 693.967.037 | 365.518.274 |
| 7 Liabilities for advance payments | 116 | 61.767.845 | 75.026.996 |
| 8 Liabilities to suppliers | 117 | 49.993.663 | 39.794.355 |
| 9 Liabilities for securities | 118 | 6.625.196 | |
| 10 Liabilities to employees | 119 | 15.921.399 | 14.779.679 |
| 11 Taxes, contributions and similar liabilities | 120 | 4.664.984 | 4.233.065 |
| 12 Liabilities arising from the share in the result | 121 | 9.600 | |
| 13 Liabilities arising from fixed assets held for sale | 122 | ||
| 14 Other short-term liabilities | 123 | 32.265.457 | 25.442.699 |
| E) ACCRUALS AND DEFERRED INCOME | 124 | 65.393.973 | 67.913.153 |
| F) TOTAL – LIABILITIES (ADP 067+090+097+109+124) | 125 | 5.954.071.720 | 5.701.971.994 |
| G) OFF-BALANCE SHEET ITEMS | 126 | 54.261.380 | 54.234.377 |
Item ADP code Same period of the previous year Current period Cummulative Quarter Cummulative Quarter 1 2 3 4 5 6 I OPERATING INCOME (ADP 002 to 006) 001 33.666.486 33.666.486 28.149.416 28.149.416 1 Income from sales with undertakings within the group 002 5.624.519 5.624.519 1.208.798 1.208.798 2 Income from sales (outside group) 003 25.830.574 25.830.574 17.661.044 17.661.044 3 Income from the use of own products, goods and services 004 51.374 51.374 51.447 51.447 4 Other operating income with undertakings within the group 005 11.862 11.862 53.750 53.750 5 Other operating income (outside the group) 006 2.148.157 2.148.157 9.174.377 9.174.377 II OPERATING EXPENSES (ADP 008+009+013+017+018+019+022+029) 007 229.821.965 229.821.965 156.140.684 156.140.684 1 Changes in inventories of work in progress and finished goods 008 2 Material costs (ADP 010 to 012) 009 42.286.760 42.286.760 23.722.087 23.722.087 a) Costs of raw materials and consumables 010 20.065.489 20.065.489 11.284.497 11.284.497 b) Costs of goods sold 011 22.401 22.401 770.184 770.184 c) Other external costs 012 22.198.870 22.198.870 11.667.406 11.667.406 3 Staff costs (ADP 014 to 016) 013 59.343.367 59.343.367 22.098.277 22.098.277 a) Net salaries and wages 014 37.839.985 37.839.985 11.050.269 11.050.269 b) Tax and contributions from salary costs 015 13.939.013 13.939.013 8.015.801 8.015.801 c) Contributions on salaries 016 7.564.369 7.564.369 3.032.207 3.032.207 4 Depreciation 017 99.632.860 99.632.860 98.147.873 98.147.873 5 Other costs 018 25.830.895 25.830.895 9.976.868 9.976.868 6 Value adjustments (ADP 020+021) 019 109.971 109.971 7.980 7.980 a) fixed assets other than financial assets 020 b) current assets other than financial assets 021 109.971 109.971 7.980 7.980 7 Provisions (ADP 023 to 028) 022 a) Provisions for pensions, termination benefits and similar obligations 023 b) Provisions for tax liabilities 024 c) Provisions for ongoing legal cases 025 d) Provisions for renewal of natural resources 026 e) Provisions for warranty obligations 027 f) Other provisions 028 8 Other operating expenses 029 2.618.112 2.618.112 2.187.599 2.187.599 III. FINANCIAL INCOME (ADP 031 to 040) 030 4.185.235 4.185.235 3.895.125 3.895.125 1 Income from investments in holdings (shares) of undertakings within the group 031 2 Income from investments in holdings (shares) of companies linked by virtue of participating interests 032 3 Income from other long-term financial investment and loans granted to undertakings within the group 033 4 Other interest income from operations with undertakings within the group 034 5 Exchange rate differences and other financial income from operations with undertakings within the group 035 6 Income from other long-term financial investments and loans 036 7 Other interest income 037 39.318 39.318 11.426 11.426 8 Exchange rate differences and other financial income 038 1.943.833 1.943.833 1.188.985 1.188.985 9 Unrealised gains (income) from financial assets 039 1.200.566 1.200.566 10 Other financial income 040 2.202.084 2.202.084 1.494.148 1.494.148 IV FINANCIAL EXPENSES (ADP 042 to 048) 041 81.482.800 81.482.800 28.911.176 28.911.176 1 Interest expenses and similar expenses with undertakings within the group 042 2 Exchange rate differences and other expenses from operations with undertakings within the group 043 3 Interest expenses and similar expenses 044 4.500.161 4.500.161 14.120.487 14.120.487 4 Exchange rate differences and other expenses 045 57.284.316 57.284.316 13.354.599 13.354.599 5 Unrealised losses (expenses) from financial assets 046 18.168.522 18.168.522 6 Value adjustments of financial assets (net) 047 7 Other financial expenses 048 1.529.801 1.529.801 1.436.090 1.436.090 V SHARE IN PROFIT FROM UNDERTAKINGS LINKED BY VRITUE OF PARTICIPATING INTERESTS 049 VI SHARE IN PROFIT FROM JOINT VENTURES 050 VII SHARE IN LOSS OF COMPANIES LINKED BY VIRTUE OF PARTICIPATING INTEREST 051 VIII SHARE IN LOSS OF JOINT VENTURES 052 IX TOTAL INCOME (ADP 001+030+049+050) 053 37.851.721 37.851.721 32.044.541 32.044.541 X TOTAL EXPENDITURE (ADP 007+041+051+052) 054 311.304.765 311.304.765 185.051.860 185.051.860 XI PRE-TAX PROFIT OR LOSS (ADP 053-054) 055 -273.453.044 -273.453.044 -153.007.319 -153.007.319 1 Pre-tax profit (ADP 053-054) 056 2 Pre-tax loss (ADP 054-053) 057 -273.453.044 -273.453.044 -153.007.319 -153.007.319
| Item | ADP code |
Same period of the previous year |
Current period | ||
|---|---|---|---|---|---|
| Cummulative | Quarter | Cummulative | Quarter | ||
| 1 | 2 | 3 | 4 | 5 | 6 |
| XII INCOME TAX | 058 | -49.040.467 | -49.040.467 | ||
| XIII PROFIT OR LOSS FOR THE PERIOD (ADP 055-059) | 059 | -273.453.044 | -273.453.044 | -103.966.852 | -103.966.852 |
| 1. Profit for the period (ADP 055-059) | 060 | ||||
| 2. Loss for the period (ADP 059-055) | 061 | -273.453.044 | -273.453.044 | -103.966.852 | -103.966.852 |
| XIV PRE-TAX PROFIT OR LOSS OF DISCONTINUED OPERATIONS (ADP 063-064) |
062 | |
|---|---|---|
| 1 Pre-tax profit from discontinued operations | 063 | |
| 2 Pre-tax loss on discontinued operations | 064 | |
| XV INCOME TAX OF DISCONTINUED OPERATIONS | 065 | |
| 1 Discontinued operations profit for the period (ADP 062-065) | 066 | |
| 2 Discontinued operations loss for the period (ADP 065-062) | 067 |
| XVI PRE-TAX PROFIT OR LOSS (ADP 055+062) | 068 |
|---|---|
| 1 Pre-tax profit (ADP 068) | 069 |
| 2 Pre-tax loss (ADP 068) | 070 |
| XVII INCOME TAX (ADP 058+065) | 071 |
| XVIII PROFIT OR LOSS FOR THE PERIOD (ADP 068-071) | 072 |
| 1 Profit for the period (ADP 068-071) | 073 |
| 2 Loss for the period (ADP 071-068) | 074 |
| XIX PROFIT OR LOSS FOR THE PERIOD (ADP 076+077) | 075 |
|---|---|
| 1 Attributable to owners of the parent | 076 |
| 2 Attributable to minority (non-controlling) interest | 077 |
| I PROFIT OR LOSS FOR THE PERIOD | 078 | -273.453.044 | -273.453.044 | -103.966.852 | -103.966.852 |
|---|---|---|---|---|---|
| II OTHER COMPREHENSIVE INCOME/LOSS BEFORE TAX (ADP 080 to 087) |
079 | -92.880 | -92.880 | 26.874 | 26.874 |
| III ITEMS THAT WILL NOT BE RECLASSIFIED TO PROFIT OR LOSS (ADP 081 to 085) |
080 | -92.880 | -92.880 | 26.874 | 26.874 |
| 1 Changes in revaluation reserves of fixed tangible and intangible assets | 081 | ||||
| 2 Gains or losses from subsequent measurement of equity instruments at fair value through other comprehensive income |
082 | -92.880 | -92.880 | 26.874 | 26.874 |
| 3 Fair value changes of financial liabilities at fair value through statement of profit or loss, attributable to changes in their credit risk |
083 | ||||
| 4 Actuarial gains/losses on the defined benefit obligation | 084 | ||||
| 5 Other items that will not be reclassified | 085 | ||||
| 6 Income tax relating to items that will not be reclassified | 086 | -16.719 | -16.719 | 4.837 | 4.837 |
| IV ITEMS THAT MAY BE RECLASSIFIED TO PROFIT OR LOSS (ADP 088 to 095) |
087 | ||||
| 1 Exchange rate differences from translation of foreign operations | 088 | ||||
| 2 Gains or losses from subsequent measurement of debt securities at fair value through other comprehensive income |
089 | ||||
| 3 Profit or loss arising from effective cash flow hedging | 090 | ||||
| 4 Profit or loss arising from effective hedge of a net investment in a foreign operation |
091 | ||||
| 5 Share in other comprehensive income/loss of companies linked by virtue of participating interests |
092 | ||||
| 6 Changes in fair value of the time value of option | 093 | ||||
| 7 Changes in fair value of forward elements of forward contracts | 094 | ||||
| 8 Other items that may be reclassified to profit or loss | 095 | ||||
| 9 Income tax relating to items that may be reclassified to profit or loss | 096 |
| Item | ADP code |
of the previous year | Same period | Current period | |
|---|---|---|---|---|---|
| Cummulative | Quarter | Cummulative | Quarter | ||
| 1 | 2 | 3 | 4 | 5 | 6 |
| V NET OTHER COMPREHENSIVE INCOME OR LOSS (ADP 080+087- 086 - 096) | 097 | -76.161 | -76.161 | 22.037 | 22.037 |
| VI COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 078+097) | 098 | -273.529.205 | -273.529.205 | -103.944.815 | -103.944.815 |
| VII COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 100+101) | 099 |
|---|---|
| 1 Attributable to owners of the parent | 100 |
| 2 Attributable to minority (non-controlling) interest | 101 |
| ADP | Same period of the | Current | |
|---|---|---|---|
| Item | code | previous year | period |
| 1 | 2 | 3 | 4 |
| CASH FLOW FROM OPERATING ACTIVITIES | |||
| 1 Pre-tax profit | 001 | -273.453.044 | -153.007.319 |
| 2 Adjustments (ADP 003 to 010): | 002 | 179.728.180 | 117.379.295 |
| a) Depreciation | 003 | 99.632.860 | 98.147.873 |
| b) Gains and losses from sale and value adjustment of fixed tangible and intangible assets | 004 | 20.834 | -962.797 |
| c) Gains and losses from sale and unrealised gains and losses and value adjustment of financial assets |
005 | -107.795 | |
| d) Interest and dividend income | 006 | -16.030 | -3.949 |
| e) Interest expenses | 007 | 6.029.963 | 15.556.577 |
| f) Provisions | 008 | -35.692 | -5.990.355 |
| g) Exchange rate differences (unrealised) | 009 | 57.284.316 | 13.352.009 |
| h) Other adjustments for non-cash transactions and unrealised gains and losses | 010 | 16.919.724 | -2.720.063 |
| I Cash flow increase or decrease before changes in working capital (ADP 001+002) | 011 | -93.724.864 | -35.628.024 |
| 3 Changes in the working capital (ADP 013 to 016) | 012 | 84.889.775 | 891.423 |
| a) Increase or decrease in short-term liabilities | 013 | 80.338.497 | -14.906.396 |
| b) Increase or decrease in short-term receivables | 014 | 9.495.027 | 17.418.690 |
| c) Increase or decrease in inventories | 015 | -5.011.387 | -1.620.871 |
| d) Other increase or decrease in working capital | 016 | 67.638 | |
| II Cash from operations (ADP 011+012) | 017 | -8.835.089 | -34.736.601 |
| 4 Interest paid | 018 | -4.845.769 | -7.187.433 |
| 5 Income tax paid | 019 | ||
| A) NET CASH FLOW FROM OPERATING ACTIVITIES (ADP 017 to 019) | 020 | -13.680.858 | -41.924.034 |
| CASH FLOW FROM INVESTMENT ACTIVITIES | |||
| 1 Cash receipts from sales of fixed tangible and intangible assets | 021 | 2.825.666 | |
| 2 Cash receipts from sales of financial instruments | 022 | 12.621 | |
| 3 Interest received | 023 | 18.803 | 9.031 |
| 4 Dividends received | 024 | ||
| 5 Cash receipts from repayment of loans and deposits | 025 | 6.087 | 4.816 |
| 6 Other cash receipts from investment activities | 026 | ||
| III Total cash receipts from investment activities (ADP 021 to 026) 1 Cash payments for the purchase of fixed tangible and intangible assets |
027 028 |
37.511 -224.484.629 |
2.839.513 -9.018.102 |
| 2 Cash payments for the acquisition of financial instruments | 029 | ||
| 3 Cash payments for loans and deposits for the period | 030 | -55.486 | |
| 4 Acquisition of a subsidiary, net of cash acquired | 031 | ||
| 5 Other cash payments from investment activities | 032 | ||
| IV Total cash payments from investment activities (ADP 028 to 032) | 033 | -224.540.115 | -9.018.102 |
| B) NET CASH FLOW FROM INVESTMENT ACTIVITIES (ADP 027+033) | 034 | -224.502.604 | -6.178.589 |
| CASH FLOW FROM FINANCING ACTIVITIES | |||
| 1 Cash receipts from the increase in initial (subscribed) capital | 035 | ||
| 2 Cash receipts from the issue of equity financial instruments and debt financial instruments |
036 | ||
| 3 Cash receipts from credit principals, loans and other borrowings | 037 | 364.676.597 | |
| 4 Other cash receipts from financing activities | 038 | 1.598.721 | |
| V Total cash receipts from financing activities (ADP 035 to 038) | 039 | 366.275.318 | |
| 1 Cash payments for the repayment of credit principals, loans and other borrowings and debt financial instruments |
040 | -302.288 | -145.332.887 |
| 2 Cash payments for dividends | 041 | ||
| 3 Cash payments for finance lease | 042 | ||
| 4 Cash payments for the redemption of treasury shares and decrease in initial (subscribed) capital |
043 | ||
| 5 Other cash payments from financing activities | 044 | -949.155 | -563.222 |
| VI Total cash payments from financing activities (ADP 040 to 044) | 045 | -1.251.443 | -145.896.109 |
| C) NET CASH FLOW FROM FINANCING ACTIVITIES (ADP 039+045) | 046 | 365.023.875 | -145.896.109 |
| 1 Unrealised exchange rate differences in respect of cash and cash equivalents | 047 | ||
| D) NET INCREASE OR DECREASE IN CASH FLOWS (ADP 020+034+046+047) | 048 | 126.840.413 | -193.998.732 |
| E) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD | 049 | 247.849.272 | 522.973.238 |
| F) CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD (ADP 048+049) | 050 | 374.689.685 | 328.974.506 |
| Attributable to owners of the parent | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Item | ADP code |
Initial (subscribed) capital |
Capital reserves |
Legal reserves |
Reserves for treasury shares |
Treasury shares and holdings (deductible item) |
Statutory reserves |
Other reserves |
Revaluation reserves |
Fair value of financial assets through other comprehensive income (availa |
Cash flow hedge - effective portion |
Hedge of a net investment in a foreign operation - effective portion |
Other fair value reserves |
Exchange rate differences from transla tion of foreign operations |
Retained profit / loss brought forward |
Profit/loss for the business year |
Total attributable to owners of the parent |
Minority (non-con trolling) interest |
Total capital and reserves |
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | ble for sale) 11 |
12 | 13 | 14 | 15 | 16 | 17 | 18 (3 to 6 - 7 + 8 to 17) |
19 | 20 (18+19) |
| Previous period | |||||||||||||||||||
| 1 Balance on the first day of the previous business year | 01 | 1.672.021.210 | 5.710.563 83.601.061 136.815.284 124.418.266 | 61.473 | 539.646.072 377.006.905 2.690.444.302 | 2.690.444.302 | |||||||||||||
| 2 Changes in accounting policies | 02 | ||||||||||||||||||
| 3 Correction of errors | 03 | ||||||||||||||||||
| 4 Balance on the first day of the previous business year (restated) (ADP 01 to 03) 5 Profit/loss of the period |
04 05 |
1.672.021.210 | 5.710.563 83.601.061 136.815.284 124.418.266 | 61.473 | 539.646.072 377.006.905 2.690.444.302 -308.549.679 -308.549.679 |
2.690.444.302 -308.549.679 |
|||||||||||||
| 6 Exchange rate differences from translation of foreign operations | 06 | ||||||||||||||||||
| 7 Changes in revaluation reserves of fixed tangible and intangible assets | 07 | ||||||||||||||||||
| 8 Gains or losses from subsequent measurement of financial assets at fair value | 08 | -73.904 | -73.904 | -73.904 | |||||||||||||||
| through other comprehensive income (available for sale) 9 Profit or loss arising from effective cash flow hedge |
09 | ||||||||||||||||||
| 10 Profit or loss arising from effective hedge of a net investment in a foreign operation | 10 | ||||||||||||||||||
| 11 Share in other comprehensive income/loss of companies linked by virtue of | 11 | ||||||||||||||||||
| participating interests 12 Actuarial gains/losses on the defined benefit obligation |
12 | ||||||||||||||||||
| 13 Other changes in equity unrelated to owners | 13 | ||||||||||||||||||
| 14 Tax on transactions recognised directly in equity | 14 | 13.303 | 13.303 | 13.303 | |||||||||||||||
| 15 Decrease in initial (subscribed) capital (other than arising from the pre bankruptcy settlement procedure or from the reinvestment of profit) |
15 | ||||||||||||||||||
| 16 Decrease in initial (subscribed) capital arising from the pre-bankruptcy | |||||||||||||||||||
| settlement procedure | 16 | ||||||||||||||||||
| 17 Decrease in initial (subscribed) capital arising from the reinvestment of profit | 17 | ||||||||||||||||||
| 18 Redemption of treasury shares/holdings 19 Payments from members/shareholders |
18 19 |
||||||||||||||||||
| 20 Payment of share in profit/dividend | 20 | ||||||||||||||||||
| 21 Other distributions and payments to members/shareholders | 21 | 2.249.472 | 1.140.526 | 3.389.998 | 3.389.998 | ||||||||||||||
| 22 Transfer to reserves according to the annual schedule | 22 | 377.006.905 -377.006.905 | |||||||||||||||||
| 23 Increase in reserves arising from the pre-bankruptcy settlement procedure | 23 | ||||||||||||||||||
| 24 Balance on the last day of the previous business year reporting period (ADP 04 to 23) |
24 | 1.672.021.210 | 5.710.563 83.601.061 136.815.284 124.418.266 | 2.249.472 | 872 | 917.793.503 -308.549.679 2.385.224.020 | 2.385.224.020 | ||||||||||||
| APPENDIX TO THE STATEMENT OF CHANGES IN EQUITY (to be filled in by undertakings that draw up financial statements in accordance with the IFRS) | |||||||||||||||||||
| I OTHER COMPREHENSIVE INCOME OF THE PREVIOUS PERIOD, NET OF TAX (ADP 06 to 14) | 25 | -60.601 | -60.601 | -60.601 | |||||||||||||||
| II COMPREHENSIVE INCOME OR LOSS FOR THE PREVIOUS PERIOD (ADP 05+25) |
26 | -60.601 | -308.549.679 -308.610.280 | -308.610.280 | |||||||||||||||
| III TRANSACTIONS WITH OWNERS IN THE PREVIOUS PERIOD RECOGNISED DIRECTLY IN EQUITY (ADP 15 to 23) |
27 | 2.249.472 | 378.147.431 -377.006.905 | 3.389.998 | 3.389.998 | ||||||||||||||
| Current period | |||||||||||||||||||
| 1 Balance on the first day of the previous business year | 28 | 1.672.021.210 | 5.710.563 83.601.061 136.815.284 124.418.266 | 2.249.472 | 872 | 917.793.503 -308.549.679 2.385.224.020 | 2.385.224.020 | ||||||||||||
| 2 Changes in accounting policies | 29 | ||||||||||||||||||
| 3 Correction of errors 4 Balance on the first day of the previous business year (restated) (ADP 28 to 30) |
30 31 |
1.672.021.210 | 5.710.563 83.601.061 136.815.284 124.418.266 | 2.249.472 | 872 | 917.793.503 -308.549.679 2.385.224.020 | 2.385.224.020 | ||||||||||||
| 5 Profit/loss of the period | 32 | -103.966.852 -103.966.852 | -103.966.852 | ||||||||||||||||
| 6 Exchange rate differences from translation of foreign operations | 33 | ||||||||||||||||||
| 7 Changes in revaluation reserves of fixed tangible and intangible assets | 34 | ||||||||||||||||||
| 8 Gains or losses from subsequent measurement of financial assets at fair value through other comprehensive income (available for sale) |
35 | 26.874 | 26.874 | 26.874 | |||||||||||||||
| 9 Profit or loss arising from effective cash flow hedge | 36 | ||||||||||||||||||
| 10 Profit or loss arising from effective hedge of a net investment in a foreign operation | 37 | ||||||||||||||||||
| 11 Share in other comprehensive income/loss of companies linked by virtue of participating interests |
38 | ||||||||||||||||||
| 12 Actuarial gains/losses on the defined benefit obligation | 39 | ||||||||||||||||||
| 13 Other changes in equity unrelated to owners | 40 | ||||||||||||||||||
| 14 Tax on transactions recognised directly in equity | 41 | -4.837 | -4.837 | -4.837 | |||||||||||||||
| 15 Decrease in initial (subscribed) capital (other than arising from the pre bankruptcy settlement procedure or from the reinvestment of profit) |
42 | ||||||||||||||||||
| 16 Decrease in initial (subscribed) capital arising from the pre-bankruptcy | 43 | ||||||||||||||||||
| settlement procedure 17 Decrease in initial (subscribed) capital arising from the reinvestment of profit |
44 | ||||||||||||||||||
| 18 Redemption of treasury shares/holdings | 45 | ||||||||||||||||||
| 19 Payments from members/shareholders | 46 | ||||||||||||||||||
| 20 Payment of share in profit/dividend | 47 | ||||||||||||||||||
| 21 Other distributions and payments to members/shareholders | 48 | ||||||||||||||||||
| 22 Carryforward per annual plane 23 Increase in reserves arising from the pre-bankruptcy settlement procedure |
49 50 |
-308.549.679 308.549.679 | |||||||||||||||||
| 24 Balance on the last day of the previous business year reporting period (ADP 31 to 50) |
51 | 1.672.021.210 | 5.710.563 83.601.061 136.815.284 124.418.266 | 2.249.472 | 22.909 | 609.243.824 -103.966.852 2.281.279.205 | 2.281.279.205 | ||||||||||||
| APPENDIX TO THE STATEMENT OF CHANGES IN EQUITY (to be filled in by undertakings that draw up financial statements in accordance with the IFRS) | |||||||||||||||||||
| I OTHER COMPREHENSIVE INCOME FOR THE CURRENT PERIOD, NET OF TAX (ADP 33 to 41) | 52 | 22.037 | 22.037 | 22.037 | |||||||||||||||
| II COMPREHENSIVE INCOME OR LOSS FOR THE CURRENT PERIOD (ADP 32 to 52) | 53 | 22.037 | -103.966.852 -103.944.815 | -103.944.815 | |||||||||||||||
| III TRANSACTIONS WITH OWNERS IN THE CURRENT PERIOD RECOGNISED DIRECTLY IN EQUITY (ADP 42 to 50) |
54 | -308.549.679 308.549.679 |
(drawn up for quarterly reporting periods)
Name of the issuer: Valamar Riviera d.d.
Personal identification number OIB: 36201212847
Reporting period: 01.01.2021. to 31.03.2021. Notes to financial statements for quarterly periods include:
(drawn up for quarterly reporting periods)
statements have been adopted; the information concerning capital and reserves and the profit or loss may be omitted where the undertaking concerned does not publish its balance sheet and is not controlled by another undertaking
Notes to financial statements for the three month period together with detailed information on financial performance and events relevant to understanding changes in financial statements are available in PDF document "Business results 1/1/2021 – 31/3/2021" which has been simultaneously published with this document on HANFA (Croatian Financial Services Supervisory Agency), Zagreb Stock Exchange and Issuers web pages.
Valamar Riviera d.d., Poreč ("the Company") has been established and registered in accordance with Croatian laws and regulations. The Company is registered with the Commercial Court in Pazin. The principle activity of the Company is the provision of accommodation in hotels, resorts and campsites, food preparation and catering services as well as the preparation and serving of beverages. Company's business is of seasonal character. Company's registration number (MBS) is: 040020883, while the Company's personal identification number (OIB) is: 36201212847. The registered office of Valamar Riviera d.d. is in Poreč, Stancija Kaligari 1. Company's share capital amounts to HRK 1,672,021 thousand and comprises 126,027,542 ordinary shares with no prescribed nominal value.
Valamar Riviera Group consists of Valamar Riviera d.d., Poreč, joint-stock company for tourism services (the Parent Company) and its subsidiaries (the Group) as follows:
The consolidated and unconsolidated financial statements for the three month period ended 31 March 2021 were approved by the Management Board in Poreč on 28 April 2021.
The consolidated and unconsolidated financial statements for the three month period have not been audited.
The Company's and Group's financial statements for the three months ended on 31 March 2021 have been prepared in accordance with International Accounting Standard (IAS) 34 – Interim Financial Reporting. The financial statements have been prepared under the historical cost method, except for the financial assets at fair value through profit or loss and financial assets. The consolidated and unconsolidated financial statements for the three month period do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Company's and Group's annual financial statements as at 31 December 2020 which are available on HANFA (Croatian Financial Services Supervisory Agency), Zagreb Stock Exchange and Group's web pages.
Company's and Group's three month financial statements have been prepared on a going concern basis. Based on current expectations, Management believes, although potentially negative short-term effects on Company's and Group's revenues and cash inflows are expected, it is not probable that the situation will have significant negative impact on the Company's and Group's ability to fulfil its obligations nor prolonged impact on Company's and Group's revenues and overall business which can affect the Company's and Group's ability to continue as a going concern in the foreseeable future.
There were no changes in critical accounting estimates used for preparation of financial statements for the period ended 31 March 2021 comparing to those used for the preparation of the annual financial statements for the year ended 31 December 2020.
At the end of the tourist season and until the preparation of the annual financial statements for 2021, the Company and the Group will make an assessment of existing indications of impairment of non-current tangible and intangible assets.
The Company and the Group need to determine the ownership status for cca 3.24 million m2 and cca 3.54 million m2 respectively, pursuant to the provisions of the Act on unappraised land (hereinafter: the Act), that entered into force on 2 May 2020. The Act lays down the obligation to determine and establish, within the prescribed deadlines, real estate on the assessed parts of the camp, hotel, tourist complexes and other building land as the subject matter of the right of ownership of the Company and the Group; and real estate on the parts of the camp, hotel, tourist complexes and other building land that have not been assessed as the subject matter of the right of ownership of the Republic of Croatia or local governments. As regards the parts of land owned by the Republic of Croatia or local governments, the Company and the Group will conclude a lease agreement for a period of 50 years. The unit amount of the rent and the manner of and deadlines for the payment will be laid down by a regulation adopted by the Government. At the moment of creating this document, the regulation has not been adopted yet; therefore it has not been possible to determine right-of-use assets and liabilities since the entry into force of the Act, i.e. since 2 May 2020. After the adoption of the regulation on prices, the Company and the Group will revise total surface areas that will be the subject matter of the lease agreement and they will assess the value of the right-of-use assets and liabilities in accordance with the provisions of IFRS 16. In 2020 and the first three month period ended 31 March 2021, the Company and the Group were not able to determine the object of the lease and the value of the lease.
Under the assumption of the lowest/highest price spread reaching HRK 6/12/m2, lowest/highest discount rate reaching 4/8% and with the correction of surface areas that will be subject to the lease +/- 10%, the Company and the Group assessed the value of the right-of-use assets and liabilities on the day of the entry into force of the Act, which would amount to a range from cca HRK 212,522 thousand to cca HRK 921,895 thousand for the Company, while the assessment for the Group would range from cca HRK 224,536 thousand to cca HRK 974,010 thousand.
The accounting policies adopted in the preparation of the financial statements for the three month period ended 31 March 2021 are consistent with those followed in the preparation of the Company's and Group's annual financial statements for the year ended 31 December 2020.
The fair value of financial instruments traded in active markets is based on quoted market prices at the reporting date. The quoted market price used for financial assets held by the Company and the Group is the current bid price. The fair value of financial instruments that are not traded in the active market is determined by using valuation techniques. The Company and the Group use a variety of methods and make assumptions that are based on market conditions existing at each reporting date.
The carrying value less impairment provision of trade receivables and payables are assumed to approximate their fair values.
Quoted market prices for similar instruments are used for long-term debt. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Company and the Group for similar financial instruments.
IFRS 13 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources; unobservable inputs reflect the Company's market assumptions. These two types of inputs have created the following fair value hierarchy:
| (in thousands of HRK) | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
| As at 31 December 2020 | ||||
| Assets measured at fair value | ||||
| Financial assets - equity securities | 317 | - | - | 317 |
| Total assets measured at fair value | 317 | - | - | 317 |
| Liabilities measured at fair value | ||||
| Derivative financial instruments | - | 16,982 | - | 16,982 |
| Total liabilities measured at fair value | - | 16,982 | - | 16,982 |
| As at 31 March 2021 | ||||
| Assets measured at fair value | ||||
| Financial assets - equity securities | 344 | - | - | 344 |
| Derivative financial instruments | - | 41 | - | 41 |
| Total assets measured at fair value | 344 | 41 | - | 385 |
| Liabilities measured at fair value | ||||
| Derivative financial instruments | - | 14,368 | - | 14,368 |
| Total liabilities measured at fair value | - | 14,368 | - | 14,368 |
The following table presents assets measured at fair value as at:
NOTES TO THE FINANCIAL STATEMENTS FOR THE THREE MONTH PERIOD ENDED 31 MARCH 2021 / continued
| COMPANY | ||||
|---|---|---|---|---|
| (in thousands of HRK) | Level 1 | Level 2 | Level 3 | Total |
| As at 31 December 2020 | ||||
| Assets measured at fair value | ||||
| Financial assets - equity securities | 261 | - | - | 261 |
| Total assets measured at fair value | 261 | - | - | 261 |
| Liabilities measured at fair value | ||||
| Derivative financial instruments | - | 16,982 | - | 16,982 |
| Total liabilities measured at fair value | - | 16,982 | - | 16,982 |
| As at 31 March 2021 | ||||
| Assets measured at fair value | ||||
| Financial assets - equity securities | 288 | - | - | 288 |
| Derivative financial instruments | - | 41 | - | 41 |
| Total assets measured at fair value | 288 | 41 | - | 329 |
| Liabilities measured at fair value | ||||
| Derivative financial instruments | - | 14,368 | - | 14,368 |
| Total liabilities measured at fair value | - | 14,368 | - | 14,368 |
Following the management approach of IFRS 8, operating segments are reported in accordance with the internal reporting provided to the Group's Management (the chief operating decision-makers) who are responsible for allocating resources to the reportable segments and assessing its performance.
The Group records operating revenues and expenses by types of services rendered in three basic segments: hotels and apartments, camping and other business segments.
GROUP
Revenue was divided between segments according to the organisational principle, where all of the income generated from camping profit centres was reported in the camping segment, and all of the income generated from hotel and apartment profit centres was reported in that segment. Other business segments include revenue from laundry services, other rentals of properties, revenue generated from the central services and central kitchens, revenue from retail, agency revenue and revenue from the accommodation of employees.
The segment information related to reportable segments for the three months ended 31 March 2020 is as follows:
| (in thousands of HRK) | Hotels and apartments |
Camps | Other business segments |
Total |
|---|---|---|---|---|
| Total sales | 35,641 | 2,714 | 14,276 | 52,631 |
| Inter-segment revenue | (125) | (4) | (11,118) | (11,247) |
| Revenue from external customers | 35,516 | 2,710 | 3,158 | 41,384 |
| Depreciation and amortisation | 78,772 | 31,299 | 15,405 | 125,476 |
| Net finance income/(expense) net | (35,507) | (17,852) | (30,746) | (84,105) |
| Write-off of fixed assets | 21 | - | 2 | 23 |
| Profit/(loss) of segment | (21,877) | (6,936) | (53,622) | (82,435) |
The segment information related to reportable segments for the three months ended 31 March 2021 is as follows:
| (in thousands of HRK) | Hotels and apartments |
Camps | Other business segments |
Total |
|---|---|---|---|---|
| Total sales | 11,152 | 4,924 | 8,304 | 24,380 |
| Inter-segment revenue | (80) | (8) | (4,470) | (4,558) |
| Revenue from external customers | 11,072 | 4,916 | 3,834 | 19,822 |
| Depreciation and amortisation | 78,039 | 33,024 | 13,948 | 125,011 |
| Net finance income/(expense) net | (17,366) | (7,213) | (2,739) | (27,318) |
| Write-off of fixed assets | - | 83 | - | 83 |
| Profit/(loss) of segment | (4,509) | (1,225) | (24,997) | (30,731) |
The segment information related to total assets and liabilities by reportable segments are as follows:
| GROUP | ||||
|---|---|---|---|---|
| (in thousands of HRK) | Hotels and apartments |
Camps | Other business segments |
Total |
| As at 31 December 2020 | ||||
| Total assets | 3,537,741 | 1,515,516 | 714,073 | 5,767,330 |
| Total liabilities | 2,275,139 | 1,020,575 | 508,117 | 3,803,831 |
| As at 31 March 2021 | ||||
| Total assets | 3,470,200 | 1,485,849 | 697,073 | 5,653,122 |
| Total liabilities | 2,199,345 | 1,013,321 | 457,814 | 3,670,480 |
All hotels, apartments and camps (operating assets) are located in the Republic of Croatia, except the hotel owned by the company Valamar Obertauern GmbH located in Austria.
Reconciliation of the profit per segment with profit before tax is as follows:
| (in thousands of HRK) | January -March 2020 |
January -March 2021 |
|---|---|---|
| Revenue | ||
| Revenue from segments | 52,631 | 24,380 |
| Inter-segment revenue | (11,247) | (4,558) |
| Total revenue | 41,384 | 19,822 |
| Profit | ||
| Profit from segments | (82,434) | (30,731) |
| Other unallocated expenses | (146,817) | (134,116) |
| Elimination of inter-segment profit/(loss) | (85,568) | (21,888) |
| Total profit before tax | (314,819) | (186,735) |
The reconciliation of segment assets and liabilities with the Group's assets and liabilities is as follows:
| (in thousands of HRK) | As at 31 December 2020 | As at 31 March 2021 | ||
|---|---|---|---|---|
| Assets | Liabilities | Assets | Liabilities | |
| Segment assets/liabilities | 5,767,330 | 3,803,832 | 5,653,122 | 3,670,480 |
| Hotels and apartments segment | 3,537,741 | 2,275,139 | 3,470,200 | 2,199,345 |
| Camps segment | 1,515,516 | 1,020,575 | 1,485,849 | 1,013,321 |
| Other business segment | 714,073 | 508,118 | 697,073 | 457,814 |
| Unallocated | 1,112,253 | 211,894 | 943,689 | 189,864 |
| Investments in associate | 46,024 | - | 45,803 | - |
| Other financial assets | 317 | - | 314 | - |
| Loans and deposits | 702 | - | 709 | - |
| Cash and cash equivalents | 665,933 | - | 461,260 | - |
| Income tax receivable | 733 | - | - | - |
| Other receivables | 67,134 | - | 46,038 | - |
| Deferred tax assets/liabilities | 331,410 | 58,292 | 389,565 | 57,193 |
| Other liabilities | - | 65,206 | - | 52,879 |
| Liabilities for investments in associate | - | 13,994 | - | 13,994 |
| Derivative financial assets/ liabilities | - | 16,982 | - | 14,368 |
| Provisions | - | 57,420 | - | 51,430 |
| Total | 6,879,583 | 4,015,726 | 6,596,810 | 3,860,344 |
The Group's hospitality services are provided in Croatia and Austria to domestic and foreign customers. The Group's sales revenues are classified according to the customers' origin.
| January -March 2020 |
January -March 2021 |
|---|---|
| 12.112 | 14.982 |
| 29.272 | 4.840 |
| 41.384 | 19.822 |
Foreign sales revenues can be classified according to the number of overnights based on the customers' origin, as follows:
| GROUP | ||||||||
|---|---|---|---|---|---|---|---|---|
| (in thousands of HRK) | January -March 2020 |
% | January -March 2021 |
% | ||||
| EU members | 24,529 | 83.80 | 4,138 | 85.49 | ||||
| Other | 4,743 | 16.20 | 702 | 14.51 | ||||
| 29,272 | 100.00 | 4,840 | 100.00 |
The total amount of government grants related to the impact of the pandemic during the three month period ended 31 March 2021, amounting to HRK 39,611 thousand for the Group, and HRK 31,848 thousand for the Company.
The following table shows the information of the total cost of employees during the period broken down into the amount directly debiting the costs of the period and the amount capitalised on the value of the assets during the period:
| GROUP | COMPANY | |||
|---|---|---|---|---|
| (in thousands of HRK) | 31 March 2020 | 31 March 2021 | 31 March 2020 | 31 March 2021 |
| Staff costs for the period /i/ | 68,953 | 24,153 | 59,343 | 22,098 |
| Net salaries | 44,376 | 12,059 | 37,840 | 11,050 |
| Tax and contributions from salary costs | 16,010 | 8,790 | 13,939 | 8,016 |
| Contributions on salaries | 8,566 | 3,304 | 7,564 | 3,032 |
| Capitalised salaries costs | 2,230 | 2,001 | 1,747 | 1,820 |
| Net salaries | 1,387 | 1,279 | 1,085 | 1,170 |
| Tax and contributions from salary costs | 588 | 499 | 465 | 451 |
| Contributions on salaries | 255 | 223 | 197 | 199 |
| Total staff costs | 71,183 | 26,154 | 61,090 | 23,918 |
/i/ Total Covid-19 grants related to net salaries compensation are included in the staff cost of the Group in the amount of HRK 38,802 thousand (31 March 2020: HRK 0) and for the Company HRK 31,848 thousand (31 March 2020: HRK 0).
During the three months period of 2021 Company's average number of employees is 1,841 (31 March 2020: 1,810), while the Group's average number of employees is 2,247 (31 March 2020: 2,120).
During the period in 2021 the Company and the Group calculate the period income tax expense using the tax rate that would be applicable to the expected total annual earnings, according to the IAS 34.
| GROUP | COMPANY | |
|---|---|---|
| (in thousands of HRK) | January -March 2020 |
January -March 2021 |
| Current tax | - | - |
| Deferred tax | (59,243) | (49,040) |
| Tax (income)/expense | (59,243) | (49,040) |
| (in thousands of HRK) | GROUP | COMPANY |
|---|---|---|
| As at 1 January 2021 | 331,410 | 214,471 |
| Credited/(debited) to the income | 58,125 | 48,823 |
| Credite/ (debited) to the other comprehensive income | 30 | - |
| As at 31 March 2021 | 389,565 | 263,294 |
| (in thousands of HRK) | GROUP | COMPANY | |
|---|---|---|---|
| As at 1 January 2021 | 58,292 | 13,307 | |
| Credited/(debited) to the income | (1,118) | (217) | |
| Credite/ (debited) to the other comprehensive income | 19 | 5 | |
| As at 31 March 2021 | 57,193 | 13,095 |
Basic earnings/(loss) per share are calculated by dividing the profit/(loss) for the period of the Group by the weighted average number of shares ordinary in issue during the period, excluding the ordinary shares purchased by the Company and held as treasury shares.
Diluted earnings/(loss) per share are equal to basic, since the Group did not have any convertible instruments and share options outstanding during both periods.
| GROUP | |
|---|---|
| January -March 2021 |
|
| Profit/(loss) attributable to equity holders (in thousands of HRK) | (116,452) |
| Weighted average number of shares | 121,887,907 |
| Basic/diluted earnings/(loss) per share (in HRK) | (0.96) |
During the three months ended 31 March 2021, the Group acquired assets in the amount of HRK 13,508 thousand, while the Company acquired assets in the amount of HRK 9,018 thousand.
During the three months ended 31 March 2021, the Group and Company disposed the assets with a net book value of HRK 1,863 thousand, resulting in a net gain on disposal of HRK 971 thousand.
The following table shows bank borrowings and lease liabilities (IFRS 16) by maturity:
| GROUP | COMPANY | |||
|---|---|---|---|---|
| (in thousands of HRK) | Total liabilities on 31 March 2021 |
Maturity over 5 years |
Total liabilities on 31 March 2021 |
Maturity over 5 years |
| Bank borrowings | 3,377,502 | 1,413,361 | 3,036,573 | 1,247,296 |
| Lease liabilities under IFRS 16 | 9,357 | 2,568 | 10,149 | 2,459 |
| 3,386,859 | 1,415,929 | 3,046,722 | 1,249,755 |
As at 31 March 2021 non-current and current bank borrowings of the Company amounted HRK 3,036,573 thousand of which HRK 2,883,308 thousand is secured with a pledge over property facilities and movable property, while the rest of HRK 153,265 thousand is secured with Company's promissory notes.
As at 31 March 2021 non-current and current bank borrowings of the Group amounted HRK 3,377,502 thousand of which HRK 3,216,571 thousand is secured with a pledge over property facilities and movable property, while the rest of HRK 160,931 thousand is secured primarily with Group's promissory notes.
As at 31 December 2021 in current borrowings is presented the part of non-current borrowings in the amount of HRK 185,009 thousand for which the Company and the Group received waiver for 2020 after balance sheet date, in accordance with IAS 1. Due to that, in the report as at 31 March 2021 current borrowings are presented as a part of non-current borrowings.
The contracted capital commitments of the Company in respect to investments in tourism facilities as at 31 March 2021 amounted to HRK 513,378 thousand, while for the Group amounted to HRK 533,278 thousand.
The company is a loan guarantor to subsidiary Valamar Obertauern GmbH. The maximum estimated amount of the guarantee that can be realized is HRK 50,703 thousand. The subsidiary loan is secured with a pledge over Valamar Obertauern GmbH property facilities. The Company estimates the minimum possibility of realization of the guarantee.
The following table shows total capital and reserves and profit or loss for the last business year of associate as at 31 December 2020.
| (in thousands of HRK) | ||||
|---|---|---|---|---|
| ASSOCIATE | Country | Ownership | Total capital and reserves |
Profit/(loss) for the year |
| Helios Faros d.d., Hvar | Croatia | 20.00% | 222,671 | (8,218) |
Related party transactions were as follows: GROUP
| GROUP |
|---|
| -------------- |
| (in thousands of HRK) | January -March 2020 |
January -March 2021 |
|---|---|---|
| Sale of services | ||
| Associate with participating interest | - | 238 |
| - | 238 | |
| Purchase of services | ||
| Other related parties to the owners and corporate governance bodies | 28 | 133 |
| 28 | 133 | |
| As at 31 December 2020 |
As at 31 March 2021 |
|
| Trade and other receivable | ||
| Associate with participating interest | 331 | 186 |
| 331 | 186 | |
| Liabilities | ||
| Other related parties to the owners and corporate governance bodies | 84 | - |
| 84 | - |
Related party transactions were as follows: COMPANY
| (in thousands of HRK) | January -March 2020 |
January -March 2021 |
|---|---|---|
| Sale of services | ||
| Subsidiaries | 5,172 | 1,225 |
| Associate with participating interest | - | 238 |
| 5,172 | 1,462 | |
| Purchase of services | ||
| Subsidiaries | 239 | 108 |
| Other related parties to the owners and corporate governance bodies | 28 | 133 |
| 267 | 241 | |
| As at 31 December 2020 |
As at 31 March 2021 |
|
| Trade and other receivable | ||
| Subsidiaries | 161 | 632 |
| Associate with participating interest | 331 | 186 |
| 492 | 817 | |
| Other receivables | ||
| Subsidiaries | 26 | 26 |
| 26 | 26 | |
| Trade and other payables | ||
| Subsidiaries | 136 | 166 |
| Other related parties to the owners and corporate governance bodies | 84 | - |
| 220 | 166 | |
| Loans given | ||
| Subsidiaries | 28 | 28 |
| 28 | 28 |
The process of merging Palme turizam d.o.o. to Valamar Riviera d.d. is in progress, which is expected to end in mid-May 2021.
Stancija Kaligari 1 52440 Poreč, Hrvatska T +385 (52) 408 002 F +385 (52) 451 608 E [email protected] W www.valamar.com
Stancija Kaligari 1 52440 Poreč, Hrvatska T +385 (52) 408 159 F +385 (52) 451 608 E [email protected] W www.valamar-riviera.com
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