– We have completed all our deliveries and achieved 100 percent of our planned goals, which has led to us being declared one of the best factories in the BAT system, demonstrating that Croatian science and experts are indeed capable. Additionally, the year was marked by investments, around 200 million for a new generation of machines – said Josip Lozančić from BAT at the last panel held as part of the Lider conference Day of Big Plans. He also added that the past year was extremely challenging but also excellent for learning.
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Discussing last year’s business operations and initiated business processes alongside Lozančić were Krešimir Bubalo from Pevex, Mihael Furjan from Pliva, Gordan Kolak from Končar, and Matija Kopić from Gideon Brothers.
Gordan Kolak stated that the crisis did not slow down Končar, nor the entire electricity sector, and that this crisis has only opened business segments that have created even more opportunities, which has reflected in profit growth.
– Currently, it is important for us to achieve high values of newly contracted jobs that guarantee us the continuation of a positive trend in the coming years, as well as the possibility of entering new markets – said Kolak, adding that they are also facing a number of difficulties in supply chains, as well as rising raw material and transportation costs.
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However, all of this has not slowed down Končar’s processes and business activities, as evidenced by an 18 percent growth in the first six months of this year compared to last year. Kolak noted that they have also defined the strategy of the Končar Group, which is turning towards green and digital, and mentioned the newly established company Končar Digital, which aims to focus on new solutions in the electricity sector.
Mihael Furjan stated that Pliva did not benefit from the Covid-19 crisis, although many believe that as a pharmaceutical company, they surely profit in some way. Furjan points out that only four or five companies benefit from this health crisis.
– We experienced a decline in demand for the first time in history. The consumption of medicines decreased by 4 to 5 percent, which is a result of fewer diagnostic procedures and other healthcare processes – said Furjan.
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He added that Pliva is ‘pulled’ by exports that have nothing to do with Covid but with the launch of new products. Good export results have led to double-digit growth, both last year and this year.
And while there was a decline in demand at Pliva, the situation at Pevex is quite the opposite.
– This year we have the best year in history, and we have no logistical challenges because we anticipated everything on time, two years in advance – said Bubalo.
He added that the next step is to adjust the assortment as customers are changing and new generations are coming that need to be adapted to. The only concern for Pevex is the high cost of the state, says Bubalo, noting that last year they spent around 344 million kuna on taxes and various other fees.
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The company Gideon Brothers is also riding the wave of increased demand for automation technologies, which has led to a recent recapitalization of 32 million dollars by the American company Koch Industries.
– As a company, we find ourselves at a challenging moment as we are in a scaling phase. We need knowledge and our focus is on creating expertise internally – said Kopić.
He also mentioned that their goal is to position themselves as manufacturers, but also developers of autonomous robots, especially in new developing markets.
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The panel also discussed the opportunities expected next year, and Lozančić stated that BAT expects a market recovery and hints at a new product reorganization due to changes in smoking habits.
Kolak stated that Končar’s goal is the digitalization of products and services for end customers, as this is the direction in which the entire energy industry is heading.
– When we talk about perspective, I believe that there is a quality space in electricity that needs to be utilized, and Končar will certainly adapt to this. We also count on a macroeconomic picture of Croatia that will be marked through the NPO and that conditions will be created for investments, modernization, and networks, as currently the entire energy system operates on technology from the 1970s – noted Kolak.
Furjan added that Pliva expects the continuation of a positive growth trend and hopes that inflation will not be significant. He also expects the continuation of the easing of the economy.
Bubalo stated that, regarding inflationary pressure, he does not expect it to be greater than estimated.
– A good part of the goods has already been procured for next year. However, I am much more concerned about how Croatia will look after this census, how many people will leave us, how many will stay, how much working-age population we will have, what the price of labor will be, and what the working conditions will be. When someone leaves us, they leave because of working on Sundays, and that is one of the issues that will be very important. Another issue is labor competitiveness. Croatia will have to rein in its state spending. As for predictions, I foresee growth in consumption, growth in wages, and growth in GDP – stated Bubalo.
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– Artificial intelligence is on man, the end is for man. I think this is the topic of all topics. There is no more important topic for the future of Croatia. There is no conference about the Croatian person who needs to create something where this does not have to be discussed – said Kopić.
He added that if we statistically compare ourselves with countries that are comparable to us by population, I have no reason to believe that we cannot increase our exports by 10, 20, or 30 percent or make our exports ten times larger, as long as we do it smartly, which means focusing on people.
– The vast majority of the most capable Croatian experts would not be in Croatia if they did not have the opportunity to work on unique and specific things that they can do here. We have chased PhDs to return to Croatia. There is no longer a discussion about whether we will be a slightly better industry if we digitalize; the question is whether we will even exist if we do not digitalize. How? The answer to this question should not be left solely to entrepreneurs but should seek the help of the state. We need to make a list of thousands of the best Croatians outside of Croatia and bring them back – believes Kopić.
– I guarantee you, many of Croatia’s brightest minds today help create German and American GDP. If Americans and Chinese do this by calling experts from abroad by name, we in Croatia should at least start doing the same – concluded Kopić.
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