Podravka’s Profits Plummet to Just 18 Million Kuna

Total Croatia News

Podravka has announced business results for the first three months of the year.

The Podravka Group has achieved net profits of 18 million kuna in the first quarter of this year, which is considerably lower than in the same period last year when net profits amounted to 60.1 million kuna, according to the data from the financial report published on Friday, reports tportal.hr on April 28, 2017.

The gross profits in the first quarter stood at 320.6 million kuna, which was 12.3 percent less than in the same period last year, while net profits decreased by 70 percent to 18 million kuna. “The greatest impact on the decrease in net profits was due to, among other things, higher costs of realised stock options in the period,” Podravka explained.

The group’s sales in the first quarter of this year were 913.2 million kuna and were down by 8.4 percent year-on-year.

“The total sales revenues, which were lower than in the same period last year by 83.9 million kuna, were affected by the sale of the beverage programme, the abolition of a part of the meat programme, disturbances in the markets of the Adriatic region due to the extraordinary circumstances associated with the most important buyer, a change in distributor for the western European market, and the temporary reduction of sales to the main distributor in the Russian market,” announced Podravka.

During March, marketing and sales activities were intensified which has already produced positive results. “Sales performance indicators for the second quarter indicate a recovery of the trends, and the company continues to focus on profitability and business risks management,” Podravka added.

When it comes to the group’s strategic business areas, the company points out positive developments in the pharmaceutical segment, whose revenues amounted to 189.6 million kuna and were four percent higher compared to the same period last year. The growth of sales has been mostly influenced by the company’s own brands, which achieved a 4.3 percent growth in revenues.

At the same time, revenues in the food segment declined by 11.2 percent year-on-year, to 723.6 million kuna.

Podravka also reported today that the supervisory board had proposed to the general assembly the decision to pay dividends in the gross amount of seven kuna per share, which is the same amount as last year.


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