June the 26th, 2025 – The much loved Croatian brand Podravka is eyeing expansion to the other side of the world – Australia. There are other foreign expansion targets closer to home on the radar, too.
As Sinisa Malus/Poslovni Dnevnik writes, the Croatian brand Podravka recently presented its new business strategy that extends to 2030. In it, its ambitions are outlined across all three key pillars: Food, Agriculture and Pharmaceuticals.
The company’s plan targets overall growth through improved market positioning, improved productivity and innovation, with a strong emphasis on international expansion and strengthening global competitiveness.
Podravka’s results for the first quarter of 2025 show that sales revenue increased by 19.3 percent compared to 2024. In addition to that, normalised EBITDA increased by ten percent, while net profit after minority interests increased by an impressive 219 percent. However, on a normalised basis, net profit amounted to 19.9 million euros, which is a decrease of 3.7 million euros or 15.6 percent compared to 2024.
Margin dynamics were mixed for the company. Gross and normalised EBITDA margins decreased due to lower margin contribution from agriculture. On the other hand, EBIT and net profit margins improved owing to a one-off effect. As the integration progresses, Intercapital analysts expect a gradual normalisation of the margin structure. “This new strategy brings a sense of renewal and ambition for Podravka, although without major surprises. As expected, the strategy sets development plans in all three pillars,” write Intercapital’s analysts.
The newly integrated agricultural segment takes centre stage. The Croatian brand Podravka presented an investment plan of 200 million euros in the forecast period. It primarily focused on technological progress, improved energy efficiency, the development of new farms and a significant upgrade of its irrigation network, all done with the aim of expanding coverage from the current eight percent of land to 21 percent.
In animal husbandry, otherwise the largest component of its agricultural business, Podravka plans to build four additional pig farms. In doing that, they will manage to increase pork production by 20 percent and increase beef production by 25 percent. Farm modernisation is considered essential, and robotisation and bio-safety standards play a key role in that process. In addition to all of the aforementioned, Podravka Agri plans to significantly expand its use of renewable energy sources and internal organic materials, all while developing carbon-neutral agricultural models based on the principles of a circular bio-economy.
Strong emphasis will be placed on deepening Podravka’s already strong cooperation with local producers and scaling brands such as Baranjko and ABC. This will be carried out both on the domestic and international markets. In the food segment, Podravka aims to strengthen the international presence of its key brands, especially Vegeta, which is positioned as a major global driver.
Target markets include Germany, Austria, Switzerland, the United States and even distant Australia, while the company will continue to defend its dominant position in Croatia and the wider region. In the coming period, the strategic focus will shift to product categories with high sales and profitability potential. These include universal food supplements, ready-to-eat meals, soups, cereals such as Čokolino and various creamy spreads.
The development of tomato-based products, frozen foods, bakery snacks and fish salads is also being planned. The recently completed investment cycle of 250 million euros, which focused on technological, logistical and IT modernisation, is now behind us. Over the next five-year period, investment activity will continue at a more moderate, normalised pace. It will be primarily focused on the efficient use of technology and alignment with consumer needs.
“Sustainability remains a central theme. Podravka will increase its use of locally sourced agricultural raw materials, aiming for self-sufficiency wherever climatic and agronomic conditions allow. The company will also continue to build a network of subcontractors in fruit and vegetable production, strengthening ties with Podravka Agri,” Intercapital writes.
Looking now at the pharmaceutical segment, Belupo plans to become the European leader in dermatology by 2030. It also plans to extensively work on strengthening its position as a regional player in the field of OTC (over-the-counter) medicines. That includes cardiology, psychiatry and neurology.
“The key growth markets will be Central and Southeastern Europe, with further expansion into Western markets through dermatology and strategic partnerships. The strategy includes investments of 36 million euros to increase production and logistics capacities and improve operational efficiency. The centrepiece of this investment cycle is the creation of a Centre of Excellence for Dermatology,” Intercapital reveals.
Belupo also plans to invest in sustainability by using renewable energy sources and recyclable packaging and strengthening ties with the local community. Podravka’s 2030 strategy therefore outlines a clear and very ambitious plan. It plans to strengthen its long-term positioning in the food, agricultural and pharmaceutical industries. 2025 is likely to be a year of consolidation and internal alignment, but the strategic direction for the Croatian brand Podravka has been set, and execution will be key to unlocking the full value of this transformation.
