Analysis

For Croatian retailer Studenac, an IPO to finance further growth

Studenac believes that the IPO and subsequent listing on the Warsaw and Zagreb stock exchanges will facilitate further growth by enhancing the company’s profile, brand recognition and credibility.

Following the enormously successful IPO of Polish proximity retailer Żabka on the Warsaw Stock Exchange in October, the fourth largest offering in Europe so far this year, another retailer from emerging Europe is set for a listing: Croatia’s Studenac.



The firm’s CEO, Michał Seńczuk, said on November 7 that Studenac shares would be listed on the Zagreb and Warsaw exchanges, and would be made available to both retail and institutional investors.

“I am confident that Studenac’s proven business model, confirmed by strong financial performance with significant revenue growth and its achievements in recent years, should attract interest among potential investors,” said Seńczuk.

“I believe that continuing its longstanding track record will make the brand one of the leading players in the proximity format in the region.”

Since its acquisition by Enterprise Investors in 2018, Studenac has more than tripled the number of stores in its network, reaching over 1,400 locations by the end of September 2024.

“We have grown from a successful regional chain in Dalmatia to cover all of Croatia, becoming the largest food retailer in the country by number of stores, and this year we made the first step in our international expansion by entering neighbouring Slovenia,” Seńczuk added.

“A key driver of this growth has been our focus on the stores’ format, which allows us to be closer to our customers and meet their everyday shopping needs quickly and conveniently.”

Slovenian expansion

Seńczuk believes that the IPO and subsequent listing on the Warsaw and Zagreb stock exchanges will facilitate further growth by enhancing the company’s profile, brand recognition and credibility.

Studenac intends to continue its organic growth by opening new stores and to pursue its proven strategy of market consolidation by acquiring other players in Croatia and Slovenia, to reach 3,400 stores by the end of 2028.

“We intend to use the proceeds from the issue of the new shares to finance this dynamic growth and to strengthen the company’s financial profile,” Seńczuk said, confirming that Studenac expects to raise around 80 million euros through the issuance of new shares.

Founded in 1991, Studenac operates proximity stores, meaning that its outlets are strategically located close to customers and tailored to fit the specific needs of the surrounding community and local conditions (such as traffic patterns, tourism).

Studenac’s stores are typically located closer to consumers and in more convenient locations than those of its competitors. The firm says that some 71 per cent of its customers spend less than five minutes getting to its stores (much quicker than for competitors), with a large proportion arriving on foot.

Studenac offers a typical range of 2,000 to 4,000 branded and private label goods per store, an assortment of to-go products and certain additional services.

It largely appeals to consumers through its offering of daily proximity shopping, with a comprehensive product range that meets their daily needs, including a selection of perishables.

Unlike larger formats, it serves smaller shopping missions of locals and tourists that are summed up under its, “food for today, food for tomorrow“ concept.

Studenac primarily operates in the Croatian grocery sector, which has a total addressable market of 10.2 billion euros (as of 2023), grew at a CAGR of 5.5 per cent from 2018 to 2023 and has a projected CAGR of 4.8 per cent over the next five years according to an analysis by strategy consultancy OC&C.

The two fastest growing major segments of the Croatian grocery market in terms of revenue are smaller format stores such as Studenac’s, and discounters.

These segments are complementary to each other in terms of purchase mission, with customers buying in bulk at discounters while also visiting small format stores for convenience.

The penetration of discounters in Croatia (approximately 15 per cent) remains lower than in other CEE countries (such as Poland, Czechia, Romania, Hungary) and the impact of discounters on the overall market is therefore significantly lower.

Strong numbers

Studenac has strength across both residential locations, which provide it with a stable revenue base across all seasons, and tourist-led sites, which allow it to capitalise on Croatia’s status as a tourism destination.

In 2023, Croatia welcomed around 21 million tourists (both domestic and foreign) with approximately 107 million overnights, according to the Croatian National Tourist Board—compared to a population of just under four million.

The adoption of the euro and Croatia’s entry into the Schengen zone at the beginning of 2023 are expected to result in an increase in the number of tourists, mostly from Germany and elsewhere in Western Europe.

According to OC&C, Studenac’s market share in Croatia in 2023 was 6.6 per cent based on total revenue, an increase of 4.1 percentage points from 2018.

Sales revenue increased from 309.5 million euros in 2021 to 668.1 million euros in 2023, representing a CAGR of 46.9 per cent. Over the same period, adjusted EBITDA grew from 31.3 million euros to 65.9 million euros CAGR of 45.1 per cent.

In the first eight months of 2024, Studenac generated consolidated sales revenue of 556.5 million euros, up 19.7 per cent year-on-year.

The firm’s management also believes that Studenac’s store format is suitable for expansion into foreign markets. In 2024, it entered Slovenia through its acquisition of Kea, providing it with a foothold in the 5.9 billion euros Slovenian grocery market (based on 2023 data included in the OC&C analysis).

Slovenia has similarly favourable market characteristics to Croatia. The country offers attractive macroeconomic and demographic fundamentals, including membership in the eurozone and the highest GDP per capita of the European Union’s 11 CEE members (based on 2023 data by Eurostat).


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