Valamar announced revenue growth this year and an investment ambition of 450 million euros by 2026.

Valamar published business strategy until 2026 eve Investor's Day at which they will present the results for the first three quarters of 2024, the assessment of operations until the end of the year, and key goals and strategic initiatives until 2026.

Until 2026, Valamar has a strong ambition investments of 450 million euros in raising the quality of the portfolio under management with the aim of achieving double-digit annual business growth. Target operating profit (EBITDA) after the implementation of strategic initiatives will present 150 million euros, respectively average annual earnings growth of around 11% is predicted in the period from 2022 to 2026. For the next period the target dividend yield is around 4%, and the payment of dividends will depend on the realization of annual business plans and market movements of the share value.

On the Investor Day, two strategic projects are presented, the construction of which is in progress:

Pical Resort 5*, in Poreč, is the largest single investment in Croatian tourism, which is planned to open in 2026. The new Pical hotel will significantly contribute to the development of the destination through the construction of 514 accommodation units at the 5* level, the realization of facilities for family vacations, year-round operations, the employment of more than 700 employees and the opening of the largest congress center in Istria. 

Arba Resort 4/5* on Rab, whose opening is planned for the summer of 2025, will reposition the Rab destination towards high-value family tourism and create new attractive jobs on the island. Work on the construction of the summer resorts Pical and Arba is progressing as planned. 

Valamar's business results for the first nine months of 2024 were also published, during which it was realized  growth of operating income of 12,2% to 390,1 million euros. Strong growth in sales revenue of 13,1% was realized in the pre-season, i.e. growth of 11,4% in the main season. Due to the sudden cold and bad weather, the results in September were only at the level of last year.

In 2024, the Valamar Group expects to achieve between 411 and 415 million euros in operating income, that is, annual revenue growth of 10,4 to 11,5%. It is expected operating profit growth (adjusted EBITDA) between 7 and 9,7% to the level of 117 to 120 million euros. The expected results are in line with the goals of the business growth strategy until 2026.

Valamar will report on the realization of strategic goals and adjust strategic plans to business conditions on an annual basis. For the purposes of the long-term reward plan in shares, Valamar intends to acquire its own shares by the end of 2024 in the equivalent value of 2 million euros.

LINK on the business strategy until 2026.

Source and photo: Valamar