Atlantic Grupa d.d. reported unaudited consolidated earnings results for the first quarter ended March 31, 2012. For the quarter, the company reported turnover of HRK 1,072,309,000 compared to HRK 982,996,000 a year ago. EBITDA was HRK 134,150,000 compared to HRK 92,932,000 a year ago. EBIT was HRK 97,433,000 compared to HRK 52,979,000 a year ago. EBT was HRK 5,969,000 compared to HRK 3,458,000 a year ago. Loss for the period was HRK 2,887,000 compared to HRK 215,000 a year ago. Loss attributable to owners of the parent was HRK 6,318,000 or HRK 1.88 basic and diluted per share compared to HRK 848,000 or HRK 0.25 basic and diluted per share a year ago. Net cash flow from operating activities was HRK 199,235,000 compared to HRK 13,553,000 a year ago. Purchase of tangible and intangible assets was HRK 16,787,000 compared to HRK 28,084,000 a year ago. Net debt was HRK 2,331.5 million. This profitability growth was influenced by the sales growth that was not accompanied by equal cost growth due to the implementation of cost management through the CORE cost reduction programme and optimisation of business processes on the central level and lower levels, introduced in order to improve the operative efficiency. The profitability growth was also influenced by synergy impacts that were not fully realised in the first quarter of 2011, but also the fact that the first quarter of the previous year was burdened by numerous integration activities and negotiations with key customers. EBITDA and EBITDA margin was influenced by: (i) savings on the cost of goods sold due to further modification of the sales mix with an increase in the share of own brands, (ii) sales growth achieved with an insignificant increase in staff costs and a decrease in marketing expenses and (iii) growth in other revenues due to expected collection of damages incurred in previous periods. The company provided earnings guidance for the year 2012. For 2012, the company expects sales of HRK 4,964 million, EBITDA of HRK 550 million, EBIT of HRK 385 million and interest expense of HRK 223 million.