Podravka Continues With Successful Business and Record Results

Lauren Simmonds

As Poslovni Dnevnik writes on the 23rd of July, 2019, the supervisory board of Podravka d.d. confirmed at a recent session that they are very satisfied with the unaudited results of the Podravka Group’s business for the first half of 2019. In the second quarter, positive business trends have continued on all levels.

After 2018, which was one of the most successful business years in Podravka’s very long history and the record first quarter of this year, the group has continued on with record business results in the first half of 2019. The highest achieved semi-annual profit of 140 million kuna is primarily due to organic growth without any extraordinary impact. This is the best operating result for Podravka and the highest operating profit of the first half of its long history, which further confirms Podravka’s excellent performance during the first half of the year.

“We’re proud of the business results achieved, and we’re particularly pleased that with Culinary sector, as our most profitable program, we have managed to do a turnaround, and from a downward trend, innovative projects have achieved significant growth. We believe that we will continue with these positive business trends at all levels, which now represent a certain continuity, and in addition investing in the modernisation of our Food Processing Technology, and continuing to improve the status of our employees,” said Marin Pucar, CEO of Podravka.

The Podravka Group’s net profit for the first half of the year was 140 million kuna, or 16.1 percent more than in the comparative period of last year. The growth of sales of a profitable assortment with simultaneous control of operating costs resulted in impressive double-digit profitability growth.

The sales revenue of the Podravka Group amounted to 2,139.5 million kuna, representing growth of 5.1 percent compared to the same period back in 2018. Sales growth was affected by the growth of two of the company’s business segments, Food and Pharmaceuticals, due to increased sales and marketing activities and the demand for newly launched, innovated products.

The Food segment published sales amounting to a massive 1,684.3 million kuna, or 5.1 percent more than in the comparative period of 2018. Within the aforementioned segment, all business programs achieved sales growth and achieved growth of their very own brands by 4.8 percent. The largest growth was realised by the Fish segment with 17 percent more growth, Children’s Foods, Desserts and Snacks all at 11.2 percent more, and 5 percent growth was enjoyed by Podravka’s Culinary Business Program.

The second segment of the Podravka Group, Pharmaceuticals, generated sales of 455.2 million kuna, which represents growth of 5.2 percent compared to the same period of 2018. Pharmaceuticals’ own brands grew by 3 percent, mainly due to sales growth in Russia and here at home in Croatia.

Regarding the Podravka Group’s sales revenues by region, the largest relative increase of 13.2 percent was recorded in Western Europe and overseas countries, followed by Eastern Europe with 9 percent and the Adria region as the most significant market of Podravka Group, which achieved growth of 4.8 percent.

The share price for the same period last year has risen by 83 kuna, from 322 kuna to 405 kuna, up by 25.8 percent.

The focus of Podravka’s management in the coming year will be on the implementation of a business strategy that can be summarised by three key points: the focus on traditional markets where the Podravka Group is already a well-established manufacturer, investment in the further development of its own brands, and product innovation and efficient cost management.

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