The Podravka Group achieved sales revenue of 2.4 billion kuna in the first six months of this year, which is 8.8 percent higher than in the same period last year. The normalized net profit of the Group amounted to 195.4 million kuna, 1.3 percent lower than last year.
The strong rise in raw material prices and events related to the war in Ukraine had a significant negative impact on business conditions, both in the Food segment and in the Pharmaceutical segment. Namely, in the first half of the year, raw material costs increased by 21.6 percent, and limited access to the markets of Russia and Ukraine further negatively affected the profitability of the Pharmaceutical segment.
However, the impact of the strong rise in raw material, material, and energy prices did not fully reflect on business operations in the first half of 2022, thanks to inventories purchased at lower prices in the previous period.
– Although market movements and the rapid rise in raw material prices strongly affect operating costs, and thus the profitability of the company, we have persisted in implementing planned investment activities, improving working conditions, and increasing the salaries of our employees. I am particularly pleased that, in the context of rising inflation, the average net salary of workers in June, compared to June 2021, was 14 percent higher, which is above the average in Croatia, where this growth was 8.2 percent – stated the CEO of Podravka Martina Dalić, emphasizing that this represents a continuation of the growth of investments in employee salaries, which amounted to 35 million kuna just this year.
