Podravka Group Successfully Navigated an Exceptionally Challenging 2020

The past year was one of great challenges due to the pandemic caused by the COVID-19 disease, which significantly impacted both the domestic and global economy, as well as humanity as a whole due to changes in lifestyle and work. The pandemic and the subsequent lockdown and movement restrictions in March 2020 required a rapid adaptation and transformation of business to new models and working conditions. In the shortest possible time, Podravka Group completely adjusted its business processes to ensure that the production of food and pharmaceutical products proceeded in accordance with increased market needs, which proved to be extremely important for ensuring the supply of the population and the normal functioning of daily life.

Impressive Results

The SARS-CoV-2 virus pandemic opened new opportunities, prompting domestic producers to adapt their business processes to ensure sufficient quantities of their products for all. Despite the challenging working and production conditions, Podravka Group managed to maintain positive business trends, confirming its ability to adapt to unforeseen, extraordinary situations. Thus, the challenging year of 2020 ended for the Group with 4.5 billion kuna in sales revenue, with growth in both business segments, Food and Pharmaceuticals. At the same time, an operating profit of 332.3 million kuna increased by 48.8 million kuna, while net profit of 248.9 million kuna was higher by 27.3 million kuna compared to the previous year. It is also worth noting that Podravka Group further strengthened its export position in all key markets, especially in Western Europe and overseas countries. All of this is a result of consumer trust in product quality, especially in uncertain times when they particularly return to proven and long-standing brands.

Listening to the desires and needs of loyal consumers, Podravka continued with innovations and the expansion of its leading brand assortments, whose quality has been recognized and awarded with many accolades, including the Superior Taste Award – the most prestigious global award in the food segment. A significant jubilee was also marked, the fiftieth anniversary of Čokolina, which is enjoyed by all generations, and its popularity and recognition extend far beyond Croatian borders.

Community Partner

Behind the successful brands and business results are people – the dedicated employees of Podravka, who, even in the pandemic year, demonstrated their commitment to the company and contributed to its successful operations through their work and responsible behavior. Therefore, for their engagement in more challenging business conditions during 2020, they were rewarded several times with one-time bonuses, which contributed to further improvement of their material rights.

Along with responsibility towards employees, Podravka Group confirmed its socially responsible role towards the community in which it operates during the past year and implemented a series of initiatives and projects, many of which are actually just a continuation of long-standing practices. In times of crisis, this responsibility is particularly highlighted, so during the pandemic caused by COVID-19, Podravka Group acted as a community partner and provided assistance to those in need, primarily health institutions and Civil Protection.

Successful crisis management and operations were recognized by investors themselves, which is why the price of Podravka's shares, after the expected decline at the beginning of the pandemic, quickly rose again, ending the year with growth compared to the end of the previous year, 2019, which certainly shows investors' faith in an even better and stronger Podravka.

{embed_digitalno_izdanje}{/embed_digitalno_izdanje}