Home / Business and Politics / Due to the shortage and rising prices of raw materials, as well as labor, companies will continue to struggle with a lack of profitability

Due to the shortage and rising prices of raw materials, as well as labor, companies will continue to struggle with a lack of profitability

Next year, companies will have to face a lack of profitability, while consumers will face rising prices. The reasons for this are the business challenges surrounding the shortage of raw materials and the prices of raw materials that sometimes change on a daily basis, challenges regarding labor costs worldwide, especially in the Far East, and challenges in supply chains. The prices of energy, sugar, gas, soy, oil, wheat, steel, aluminum, and containers are rising simultaneously, with increases exceeding 50 percent. It is unrealistic to expect that companies can absorb this on their own, this is the conclusion of the round table Forecast for 2022 – opportunities and dangers at the Big Plans Day conference.

Podravka, as a company partially owned by the state, highlighted Martina Dalić, the CEO, reiterated that acquisitions and investments are part of the strategic plan of the company until 2025.

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Big Plans Day 2021. Panel 1: Martina Dalić

photo Rene Karaman

– If Podravka wants to continue competing in the market with large multinationals, we must go in that direction. We have identified acquisition targets in hopes of expanding the business and strengthening our presence in the markets of Central and Western Europe, as well as in the region – emphasized Dalić.

Lada Tedeschi Fiorio, a member of the Management Board of Atlantica, emphasized that it should not be forgotten that Atlantic had three really good business years, which, at least in terms of results, are unlikely to be repeated next year due to the business challenges arising in response to the pandemic. Atlantic invested significantly during that time, 50 million euros in two company start-ups, Jimmy chocolate and ZoomBox, healthy snacks and drinks.

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Big Plans Day 2021. Panel 1: Lada Tedeschi Fiorio

photo Rene Karaman

– At the same time, we have also grown organically, especially Argeta, in whose capacities we will invest further – announced Tedeschi Fiorio and added that they are preparing for 2022, which will certainly be different and in which the profitability of the company will be threatened.

Kraš performed quite well during the pandemic, some new investments were initiated, and new markets opened, said Slavko Ledić, the CEO of Kraš. However, like others, they are also facing shortages and need to plan and store raw materials very wisely, as there are no guarantees that this situation will calm down soon.

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Big Plans Day 2021. Panel 1: Slavko Ledić

photo Rene Karaman

Sergio Galošić, the CEO of Klimaopreme reminded of the acquisition of that company amid the pandemic and announced that this company, although not part of the food industry, like others, will have profit problems due to rising raw material prices, which must be compensated by greater labor productivity and business efficiency, new markets, and new projects to offset losses.

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Big Plans Day 2021. Panel 1: Sergio Galošić

photo Rene Karaman

Ivan Jelušić, the COO and one of the founders of Orqe, is a young representative of start-ups, and although Orqa works with the military industry, specifically the American one, which has propelled Orqa, they are still a company that operates in the consumer electronics market, which means they also face shortages and rising prices of certain materials, as well as delivery issues.

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Big Plans Day 2021. Panel 1: Ivan Jelušić

photo Rene Karaman

– The prices of our products will also rise – Jelušić stated.

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