Net profit of the Podravka Group 58.3 million euros

The Podravka Group achieved a net profit of 58.3 million euros in the first nine months of this year, which is an increase of 63.4 percent or 22.6 million euros compared to the same period last year, thanks to the impact of tax incentives, the food company announced on Friday.

– The Group’s profit is influenced by tax incentives based on the Investment Promotion Act amounting to 19.7 million euros, and when the effects of its application are excluded, the normalized net profit of the Group in the first nine months amounted to 39.2 million euros, which is 10.1 percent higher compared to the first nine months of last year – emphasized Podravka.

At the same time, as they stated, the normalized net profit of Pharmaceuticals increased by 40.7 percent and amounted to 17.9 million euros, while in Food it was 21.3 million euros, which is 1.6 million euros less than last year.

The Group’s operating profit before depreciation (EBITDA) in the first nine months amounted to 72.5 million euros, which is 3.5 million euros, or five percent more than in the same period last year.

Also, the normalized operating profit before depreciation (EBITDA) increased. For the first nine months of this year, it amounted to 73.2 million euros, which is 4.7 million euros or 6.8 percent higher compared to the same period last year.

Such growth, as stated in the announcement, was achieved despite rising prices of raw materials, packaging, and energy, investments in improving the material conditions of employees, and the continuation of a strong investment cycle.

Sales revenue 6.6 percent higher

The Podravka Group achieved sales revenue of 525.1 million euros in the first nine months of this year, which is 32.4 million euros, or 6.6 percent more compared to the same period last year.

The revenue of the Food segment amounted to 406.9 million euros, which is an increase of 4.8 percent or 18.5 million euros.

The Pharmaceuticals segment achieved significant growth of 13.3 percent, or 13.8 million euros, with total revenue of 118.2 million euros.

The CEO of Podravka, Martina Dalić, stated that they are satisfied with the results despite still strong pressures on the growth of raw material, packaging, and energy prices, especially in Food.

– We have largely mitigated these pressures by improving the quality of our performance in foreign markets – she emphasized.

In the Food segment, she is particularly pleased with the results from changes in the markets of Poland, Germany, Austria, and the USA, which, as she said, visibly contribute to the profitability of the entire Food segment.

– In the Pharmaceuticals segment, we managed to overcome the challenges posed by the war in Ukraine, and Belupo performed exceptionally well – Dalić stated.

Investment cycle in full swing

Dalić also mentioned that the investment cycle is in full swing and that investment projects worth more than 100 million euros are progressing according to plan.

– I am particularly pleased that we successfully completed the major project Turnaround of Žito, which has ensured stable foundations for further growth of the bakery sector and expansion in the Slovenian, as well as the Croatian market – she emphasized.

She also reminded that after the salary increase implemented on July 1, they are one step away from a new salary system that will eliminate long-standing injustices in job valuation that workers have faced so far, and that they are also ready for new investments in the material rights of workers.

The announcement states that investments worth 47.1 million euros were realized in the first nine months, which is almost 21 percent more than in the same period last year.

These investments include the construction of a logistics-distribution center, a tomato processing plant, the procurement of new machinery and equipment, and the opening of new jobs.

The priorities of the investment cycle, as emphasized by Podravka, are investments in modernization, the introduction of new technologies and digitalization, increasing efficiency and energy efficiency, and further improving working conditions. Ongoing works also include the modernization of the meat industry Danica, investment in agricultural machinery and irrigation, as well as additional solar power plants.

The project Turnaround of Žito has also been successfully completed, setting even better conditions for strengthening the market position in Slovenia, as well as expanding the availability of Žito bakery products in the Croatian market. Since the start of the project in January 2022, 8.2 million euros have been invested, and by the end of the year, another eight will be invested, bringing the total value to 16.2 million euros.

Podravka also reminds that the Group has started cooperation with the Atlantic Group in the markets of the United States and Austria this year.