Sectoral analyses

Coffee industry: Challenges persist, but the worst is behind

The objective of this report is to analyze the coffee industry through the lens of coffee processors. The report will examine the historical financial performance of significant regional players in coffee processing. It will offer insights for raw coffee prices

15.03.2024.

Regional topics

Special commodity report - Will sweetness turn to bitterness?

The prices of most commodities have returned to 2019/2020 period levels, but certain commodities are experiencing significant price hikes. The primary factor behind this growth are adverse weather conditions (in important regions for production) and different diseases. Since the start of 2019, the prices of cocoa, orange juice, sugar and coffee have risen by 140% on average. The orange juice stands out, which price surged by 200% followed by cocoa at 160%, which price particularly accelerated in 2024.

08.03.2024.

Regional topics

Labour market - Productivity struggling to converge to EU

In 2023, gross wages continued to grow, supported by high (albeit declining) inflation rates and a lack of labour. The growth rate in both the Adria region and the CEE4 in nominal terms was over 13.5% on average. Except for Czechia and Slovenia, gross wage growth recorded double-digit numbers. In real terms, the situation is better for the Adria region, where the average real wage growth was 4.8% yoy, suggesting better purchasing power, while that was not the case for CEE4 (-0.6% yoy).

01.03.2024.

Sectoral analyses

Electrical appliances industry: Reheating yesterday’s lukewarm margins and leftover sales growth

This report hones in on the regional Electrical appliance industry. We look at how different target markets, business models and products ultimately define intra-regional differences in financial performance. We evaluate the financial strengths and weaknesses of the largest regional players and offer our outlook regarding the industry at large.

22.02.2024.

Regional topics

Animal feed industry: Feedstock value potential – defending sales growth and milking modest margins

This report aims to provide a deeper insight of the animal feed industry in Adria region. In addition to microeconomic aspects and analysis of performance of companies within the industry, the report encompasses macroeconomic aspects, due to profound influence that economic fluctuations have on the industry.

19.02.2024.

Regional topics

Foreign trade & industrial production - Are you ready for another supply chain headache?

Industrial production in the Adria region stagnated (on average) in 2023, with Serbia on the higher end (+2.3% yoy) and Slovenia on the lower (-5.3% yoy). In this report we aim to gauge the main driver behind its dynamic, and potential going forward.

09.02.2024.

Regional topics

Retail trade - Real wage growth rebound – a push for retail trade

The real retail trade landscape in the Adria region in 2023 presented a mixed picture. Serbia and Slovenia recorded a decline, North Macedonia recorded stagnation, Croatia saw solid growth and in Bosnia and Herzegovina retail trade experienced expansion. Real wage growth is expected to play a significant role in driving retail trade, but the crucial question lies in the extent of its impact. Notably, consumers are becoming more optimistic, particularly concerning major purchases, which encompass the consumer discretionary segment of retail.

02.02.2024.

Sectoral analyses

Home improvement industry - Profit followed by higher handmade activities

Overall strong macroeconomic environment in the previous years has contributed to the increasing consumption in the segment of items related to home improvement, surprisingly, even faster than at the EU level. Spending on home improvement or do-it-yourself (DIY) items was sparked during and after the COVID-19 lockdown and the emergence of working-from-home practice as people spent more time inhouse.

26.01.2024.

Regional topics

ESG - What drives ESG ratings?

Investing in stock portfolios pilled with companies with at least solid ESG ratings and credible ESG track record is again paying well - in 2023, the MSCI Europe ESG Leaders Index rose (+17.4%) more than its parent benchmark MSCI Europe Index (+16.6%), with the latter also involving companies irrelevant of their respective ESG scores and other ESGrelevant criteria.

19.01.2024.

Sectoral analyses

Soft drinks industry - Unparalleled margin and ROIC profile

Generally rising prices within the region haven’t skipped the beverage segment. Strong consumer demand in the Adria region supported the upside in the prices, allowing the producers to copy their rising costs to their selling prices. In this part of the analysis, we aim to gauge the main drivers of the non- alcoholic beverages price puzzle.

12.01.2024.

Sectoral analyses

Chemicals industry - Decoupling swift sales growth and depleting profitability

The chemicals sector is driven virtually entirely by end user industries. Chemicals are a key input in a wide array of industries including agriculture, construction, automotive, electronics, healthcare etc. Therefore, our analyses focuses heavily on chemicals end use in order to gauge industry trends and benchmark performance.

05.01.2024.

Sectoral analyses

Agriculture industry report: Fertile finances – harvesting higher sales growth and profitability

Despite complex post-covid macroeconomic environment, agricultural companies managed to retain stable course that is evidenced in growing sales figures, improving profitability and growing margins. However, with full storages and decreasing trend of sales prices of crops, we do not expect the continuance of profitability growth going ahead.

18.12.2023.