Valamar Achieves Double-Digit Growth in 2018

Croatia’s largest tourism company Valamar Riviera reports EUR 276,4 million in revenues and 6.5 million overnights in 2018

Published 27. February 2019.

According to the 2018 audited annual results, Valamar Riviera achieved EUR 276,4 million in total revenues or 11% more than last year. Total overnights reached 6.5 million growing 4.6% compared to the same period last year, while the average rate grew by 5 %.

In 2018 operating profit adjusted for one-off items increased by 13% to EUR 94,8 million as a result of previous investments in portfolio repositioning and expansion as well as successfully balancing operating efficiency with increasing payroll and improving employee working conditions.

In 2018, Valamar grew operating efficiency despite increasing salaries by more than 11% and introducing a minimum net pay of HRK 5.000 – 7.500. In 2019 Valamar will be the first tourism company to offer a 13th salary (HRK 5.000 net) to its employees along with holiday and Christmas pay-outs and special rewards for seasonal employees. Valamar is considered to be the best employer in tourism and the only tourism company among Croatia’s TOP 20 employers according to independent market research.

Valamar has invested over EUR 539 million in Croatian tourism so far. Investments worth EUR 107 million are under way for the 2019 season as a continuation of Valamar’s investment strategy to reposition the hospitality portfolio towards premium products and services.

The hospitality company Imperial d.d. acquired by Valamar and AZ fund in 2016 performed successfully in 2018. Last year Valamar completed the acquisition of the Croatian hospitality company Hoteli Makarska d.d. in partnership with AZ funds, followed by the acquisition of a hotel in Obertauern in Austria as a first step in international expansion. Valamar and PBZ funds’ restructuring plan for Helios Faros in bankruptcy was confirmed in November 2018 anticipating new development for the largest hospitality company in Stari Grad on Hvar Island.

“An outstanding year is behind us – we achieved double-digit business growth for the fourth consecutive year, set a solid foundation for our future growth and delivered a suitable dividend on capital invested for our shareholders. In the forthcoming period we will increase our focus on human resource management, business digitalization and further development of Valamar portfolio and service concepts”, said Željko Kukurin, CEO at Valamar Riviera.

The Supervisory Board of Valamar Riviera proposed a dividend of HRK 1 per share, in line with the strategic goal to achieve and maintain an attractive dividend for shareholders in the long term. The payment day would be June 7 2019 and shareholders can choose to have one quarter of their dividend paid in Valamar Riviera shares.