A good year for major Croatian company
Podravka’s historically high profits in 2015 – last week it was announced that they had amounted to almost 400 million kuna – will certainly please the employees of the Croatian food company from Koprivnica. Due to the reported profits, they should receive additional 2,000 kuna each as a reward for good business results, reports Jutarnji List on February 25, 2016.
According to the provisions of the collective agreement signed between the company and trade unions, employees are guaranteed to receive a special reward if Podravka achieves its planned net profits. “The reward for each worker is determined in such a way that two percent of the net profits of the Podravka Group is divided by the total number of workers who were employed on 31 December”, states the agreement and adds that the reward should be paid together with wages for April.
Podravka last week published its financial report for 2015 and stated that it had recorded net profits of nearly 400 million kunas. The company employs about 4,000 workers in Croatia (with about 5,500 workers employed in total for the whole group in Croatia and abroad). It is easy to calculate that they will share a total of eight million kunas, or about 2,000 kunas per employee.
Last year, Podravka gave a somewhat smaller reward to its employees. At that time, Podravka recorded net profits of 92 million kunas, so the management decided to pay workers an average of 400 kunas, while employees with better salaries received around 800 kunas.
Key managers also have a right to receive special bonuses, according to their individual contracts. However, the details are a closely kept secret.
Together with Žito in Slovenia, Podravka had about 4.4 billion kunas in total revenues, and this year the revenues could reach 4.5 billion kunas. Last year, Podravka’s profits were somewhat “inflated” by one-off accounting changes and, unfortunately, do not represent results from its core businesses. The largest share of last year’s profits is covered by about 160 million kunas of state tax incentives for the construction of Belupo plant and by about 110 million kuna in the higher value of Žito assets.
Podravka last week announced that the whole group had about 3.78 billion kuna in sales revenues, which is about eight percent more than in 2014. The biggest problem were the results of Belupo, Podravka’s pharmaceuticals company, mainly due to the crisis in Russia and devaluation of the rouble, as well as the lowering of prices of prescription drugs in Croatia.
