Plava Laguna j.s.c. with the seat in Poreč is a company backed by more than 65 years of successful operation and development, based on principles of sustainability and social responsibility, with focus on preserving financial stability as a long-term goal. Since 2000 Plava Laguna has a stable ownership structure, when the Luksic Group acquires a majority stake through company Sutivan investments Anstalt. Significant business breakthrough was achieved in 2014 with the acquisition of Istraturist Umag, which was four years later merged with Plava Laguna, creating one of the largest tourism companies in Croatia.
The core business of Plava Laguna is hospitality and tourism, and in destinations in which it operates – Poreč, Umag and Rijeka and through a branch in the Dubrovnik area – manages hotels, resorts and campsites with the capacity to accommodate more than 44 thousand guests daily in approximately 17 thousand accommodation units within a structure of 21 hotels, 10 apartment resorts and 9 campsites. In addition, Plava Laguna manages two marinas with 360 berths and a number of restaurants and bars, sports and other facilities to complement the basic accommodation offer. Plava Laguna continuously invests capital funds in the improvement of the infrastructure and facilities, service quality and destination development, among other things, through the organisation of major sports events such as the ATP tennis tournament in Umag – „Plava Laguna Croatia Open Umag“ and the triathlon race „Plava Laguna Ironman 70.3 Poreč, Istria – Croatia“.
The Group consists of the parent company Plava Laguna j.s.c. and subsidiaries Istra D.M.C. Llc. Umag, Travel Llc. Poreč, Istraturist simple Llc. Umag and Hotel Croatia j.s.c. Cavtat. The latter was acquired on the basis of the exchange of shares agreement between the associated companies on September 2nd, 2022, and thus, a leading 5-star resort in the destination of Dubrovnik, with its wide array of accompanying facilities such as conference centre, spa & wellness, joined Plava Laguna.
Plava Laguna is one of the leading companies in the tourism sector of Croatia with market cap of more than 800 million euros. In 2022, Plava Laguna Group generated revenues at the level of 187 million euros, earnings measured by EBITDA in the amount of 73 million euros, with a profit margin of 40.9%, all indicating to a continuity of maintaining a competitive level of economic efficiency.
Reasons and objectives for stock exchange listing
Plava Laguna is listed on the Zagreb Stock Exchange since 2003 and is one of twenty-one companies classified as Accommodation and food service activities. With a market cap of approximately 800 million euros, it represents the single largest company with a share of over 25% in the sector's total market cap.
Listing on the Regular Market of the Zagreb Stock Exchange carries many advantages for Plava Laguna as well as for all the stakeholders, primarily investors and financial institutions, which is first of all reflected through access to easier and more favourable sources of financing for the growth and development of the company, exercising transparency in communication with all stakeholders, gaining access to a wider range of potential investors and partners, and strengthening of the business reputation. Ultimately, it provides possibilities for raising additional capital by issuing new equity or debt securities if needed.
Market listing implies that companies are committed to the highest standards of corporate governance, which entails, among other things, the obligation of transparent and regular reporting on financial results that must be evaluated by independent auditors, and reporting on all important changes that may affect the course of the business. The transparency of the company is a very important decision-making factor for investors as they are more inclined to invest in companies that provide a complete picture of their business performance, which may consequently lead to an increase in the company value. The transparency also leads to more favourable borrowing from banking institutions which is of great importance for Plava Laguna, considering that it enables to finance the improvement of company's services and products, thus, fostering further growth and the creation of additional value for shareholders, at the same time, not excluding the potential possibility of more favourable borrowing through debt securities, if the need arises.
Plava Laguna pays special attention to corporate social responsibility matters including transparent communication with all stakeholders via different channels of communication, among others, through the Zagreb Stock Exchange, where all relevant information pertaining to business is regularly published, thus achieving better visibility in the wider community circle and strengthening of the company's reputation.
Furthermore, Plava Laguna considers and evaluates its opportunities for growth and qualitative changes in the structure of capacity through external growth i.e. acquisitions, and market listing generally offers a more favourable position for the same.
In 2022, Plava Laguna began to adapt to the forthcoming legislation of the European Commission according to which, starting from 2025, it will be obliged to report on the environmental, social and governance components in line with the Corporate Sustainability Reporting Directive.
In the area of the social component, Plava Laguna recognised employees, guests and a local community, together with shareholders, as key stakeholders. Relations with more than three thousand employees are one of the highest importance, and high standards of employee care reflect in ensuring their rights are respected, providing professional and personal education and training, occupational health and safety and offering competitive material benefits compared to the rest of the industry. Plava Laguna continuously recognises and tunes into the needs of guests in order to improve and upgrade its services, and actively works on measuring guest satisfaction and on the digitalisation of business processes. Aware of its influence on the destinations in which it operates, Plava Laguna is involved in the work of local communities and supports projects concerning the development of the health-care system, education and improvement of life quality.
Regarding the environmental component, areas of strategic importance for business operation were defined, such as energy efficiency, rationalisation of water consumption, optimal waste management and preservation of biodiversity. In order to achieve efficient use of energy, part of capital funds is continuously directed into investments in innovative technology and renewable energy sources like photovoltaic power plants, charging stations for electrical vehicles, plug-in hybrid company cars, LED lighting and high-efficiency systems. It is strived for the maximisation of rational use of water, and the consumption is regularly monitored and analysed. Cleaning agents with a high degree of biodegradability are used, and in certain locations also water purification machinery. Plava Laguna encourages all of its facilities to reduce the amount of waste to be permanently disposed of in the landfill, by waste selection at the place of its generation, promoting paperless business strategy, introducing environmentally friendly material and with education on reducing bio-waste. In conducting business activities, it is strived for the maximisation of the perception of the impact on a rich biological diversity that arises from the preservation of many different habitats of plant and animal life, preservation of the sea and coastal areas and certain protected natural sites.
Plava Laguna based its business activities on high standards of good corporate governance and compliance with regulations that go hand in hand with sustainable business solutions.