Podravka Group achieved a net profit of 142.2 million kuna in the first nine months of this year, representing an increase of 8.6 percent compared to the same period last year, the Koprivnica-based food company reported on Tuesday. Group sales revenue increased by 23 percent, amounting to 3.03 billion kuna.
The strategic business area Food achieved sales revenue of 2.46 billion kuna, which is an increase of 30 percent. The growth is largely attributed to the consolidation of the Žito Group. Sales revenue from private label products within the Strategic Business Area of Food increased by 25 percent.
Sales revenue from the second Strategic Business Area, Pharmaceuticals, amounted to 565.6 million kuna, and despite the negative impact of exchange rate differences, it achieved growth compared to the same period last year. Without the impact of exchange rate differences, the Pharmaceuticals segment would have achieved a revenue growth of 3.5 percent. Private label products within this strategic business area recorded a revenue growth of 5.2 percent, primarily due to the expansion of business cooperation in the Russian market.
– Positive business trends at all levels continue, and this is what particularly pleases us, emphasized CEO Zvonimir Mršić.
Despite the significant negative impact of exchange rate differences, we managed to increase the profitability of our company and achieve sales growth in all regions, he stated.
– In the upcoming period, we expect further progress in expanding our business beyond the domestic market, where we currently achieve about 34 percent of total sales. The increase in the share of export markets in total revenues confirms that the strategic commitment to growth in export markets is fully justified, said Mršić during the announcement of the business results.
When viewed by markets, all four regions of Podravka Group achieved an increase in sales revenue compared to the same period a year earlier. The highest revenue growth was recorded in the Russia, CIS, and Baltic Region at 55.2 percent, with equal contributions attributed to both Food and Pharmaceuticals.
Podravka notes that a significant negative impact on the Group’s sales revenue was due to exchange rate fluctuations, amounting to 51.5 million kuna. The largest negative impacts were recorded from the Russian ruble, euro, and Polish zloty.
