Podravka Group Increased Net Profit by 60 Percent

In the first nine months of this year, Podravka Group achieved a net profit of 131 million kuna, which is 60 percent higher compared to the same period last year, the Koprivnica-based food company reported on Tuesday.

Group sales revenue increased by one percent in the first nine months, reaching 2.56 billion kuna. The strategic business area of Food achieved sales revenue of 1.99 billion kuna, representing a growth of 1.8 percent, while without the impact of exchange rate differences, this growth would amount to 2.2 percent.

Sales revenue from private label products within the strategic business area of Food increased by 3 percent, fully compensating for the lower sales revenue from trading goods, the statement said. It also highlights that the Food segment has not been burdened by severance costs for a long time and achieved a net profit of 110.5 million kuna, representing a strong growth of 139.3 percent.

Sales revenue from the Pharmaceuticals business area reached 564.8 million kuna, which, due to the negative impact of the prescribed reduction in the prices of prescription drugs by HZZO and the depreciation of the Russian ruble, represents a decline of 1.6 percent. The net profit of Pharmaceuticals amounted to 20.5 million kuna.

When viewed by markets, it is noted that the main driver of growth is the Adriatic region with 2.9 percent higher sales revenue. This growth is a result of both organic and inorganic growth in sales revenue in the mentioned region, the company explains.

“After a long time, Podravka is delivering a lot of good news. This year, by all accounts, will be a year to remember. A very high-quality result so far, completed recapitalization, realized acquisition, construction of factories, opening of new markets… The published results show that we are significantly better than last year and previous years,” said CEO Zvonimir Mršić.

As he pointed out, this is already the third consecutive quarter that Podravka has achieved significantly better business indicators than in the comparable period, and significantly better than the market situation. He added that the Russian ruble has reduced the result by almost 40 million kuna.

“A lot of knowledge and work has been invested in creating this new and better Podravka. We have completed a phase that seemed quite difficult, and more challenges lie ahead. Achievements, the team, and accumulated experience and knowledge can give us the confidence that we are ready and capable to respond to them. This year is not our goal; it is our beginning because we have become sufficiently aware of how much we can actually achieve,” emphasized Mršić.

The statement also notes that the price of Podravka’s shares increased by 11.1 percent in the first nine months, outperforming the stock indices Crobex and Crobex10, which fell by 3.4 percent and 2.8 percent, respectively, during the same period.