“The new vision of Podravka, which began with the reorganisation and the launch of new business programmes, has fully met expectations in business results in 2018. Concentration on traditional markets and faster innovation cycles with key brands and categories have brought the company the best operating result in its long history,” said Podravka's CEO Marin Pucar after the company announced business results for the past year, reports Večernji List on February 26, 2019.

Sales revenues of the Podravka Group in 2018 amounted to 4.2 billion kuna, about 3% more than the previous year. Net profits reached a record 205.7 million kuna, while the year before they amounted to 18.2 million.

The business report points out that this is the best result in 70 years of Podravka history. “The key element is that last year we focused on our own brands and traditional markets. In the five previous years, Podravka grew through acquisitions and had no organic growth, so higher production and sales of its own products had a positive impact on the entire company”, said Pucar.

After the shutdown operations in China and Africa, the markets that were seen to be unprofitable, the innovation-development cycle has given birth to super-projects, and the company saw significant growth in the Food division.

The second segment of the group, Pharmaceuticals, generated 896.9 million kuna in sales revenue, representing a growth of 3.4% or 29.4 million kuna compared to the previous year. Podravka’s own brands grew by 2.5%, mainly due to the continued growth of Russia's market demand and the expansion of distribution in the markets of Central Europe.

Podravka says that the most substantial increase in revenues, in the amount of 71.5 million kuna, was recorded by the Adria region. In the Central Europe region, sales revenue rose by 30.2 million kuna, in Western Europe and overseas countries by 13 million and in Eastern Europe by 5.6 million.

Podravka share price increased by 38.9% in 2018, while local stock indices Crobex and Crobex10 fell by 5.1 and 5.6% respectively. Total indebtedness of the Podravka Group decreased by 303.7 million kuna.

"Today we can say that Podravka can be compared with companies from international markets in key business parameters,” said Pucar. He added that this business year would be more demanding than the previous one, given certain raw material supply disruptions and the fact that the collective agreement has also increased employees' rights. But projects started last year are the guarantor of the company's success, says Pucar.

“The growing number of foreign tourists, the growth and consolidation of the HoReCa (hotels, restaurants, catering) market, and more and more 4-5-star hotels – all this is driving up the demand for quality products that Podravka produces. New products are also being launched in the culinary segment – and if they achieve good results, Podravka will have excellent financial indicators in the coming years as well,” concluded Pucar.

More news about Podravka can be found in the Business section.

Translated from Večernji List (reported by Jolanda Rak Šajn).

Investments in Croatia come in various forms, and while we tend to read about either investors running for the hills when faced with Croatia's draconian love of red tape, or investments being made in the tourism sector along the coast, large sums of cash are continually being poured into both the healthcare and the education sectors, with one county standing out from the crowd.

As Poslovni Dnevnik writes on the 10th of January, 2019, as much as 10.5 million kuna has been invested in school renovations in Koprivnica-Križevci County, the co-financing of school transport, and the largest number of scholarships have been secured so far. One of the priorities of Koprivnica-Križevci County, which was defined in the county's development strategy, is constant investment in education that continued throughout 2018.

In addition to the large amount of money having been invested in school renovations, two capital projects for energy reconstruction are due to be set up. The involved schools are primary schools in Virje and Drnje, these projects are worth as much as 9 million kuna, and both schools will achieve heating savings of a massive 70 percent. Given the fact that the aforementioned county has recognised the importance of investing in energy efficiency, new contracts have been signed for the development of major energy renewal projects in Novigrad Podravski, Ferdinandovac, Đelekovec, and Veliki Poganac.

These investments in Croatia are more than praiseworthy, and in addition to improving the overall material conditions in schools, the county is continuing to co-finance student transport and support projects for students with disabilities and special needs, offering free school meals for students from less wealthy backgrounds, and more. In addition, last year the largest number of student scholarships was awarded to date, up to 35 of them, including those awarded to medical students, which is an important contribution to the project of the promotion of vocational professions.

Despite all of the above, 2018 will most likely be remembered for investments made in the health sector, and thanks to the joint cooperation of the county, the head of Koprivnica hospital and the parliamentary representatives with the Minister of Health, a long-awaited 10 million kuna magnetic resonance (MR) device arrived at Koprivnica hospital. Other capital projects include the very welcome eight-million-kuna "POZDRAV - Improvement of Primary Health Care in Koprivnica-Križevci County" initiative.

Make sure to stay up to date with investments in Croatia and much, much more by following our dedicated lifestyle and business pages.

As Poslovni Dnevnik writes on the 20th of December, 2018, as a group, Orion achieves revenue of about 6 million euro and is constantly investing in security, consumer education, and further innovation. Owing to the constant investment and care of their business, Koprivnica is set to get a huge cash injection, and new work positions are set to be opened.

Poslovni Dnevnik talked with Damir Šimunic, the founder and owner of Koprivnica's Orion, about the situation and the development of the market for pyrotechnics in Croatia and the wider region, the business plans of the company, and the latest investment in Podravina.

In which countries is Orion the market leader?

As a company, we've existed for more than twenty years and the word ''leader'' carries with it a huge responsibility. If you think about where the Orion Group does business under that [title], most of it is done in neighbouring countries, Slovenia, Bosnia and Herzegovina and Serbia. In Croatia, we've established a serious business system based on the professionalism and an innovative approach with pyrotechnics, which today, primarily, is mainly in the entertainment world. Over the years, we've become the leading specialised company for producing and distributing entertainment pyrotechnics, fireworks, and stage effects. As a company, we're oriented towards the development of new products in order to meet the needs of a more demanding market.

How did you manage to break even on Western markets such as Austria or Belgium?

In Croatia, there is a fairly regulated market for pyrotechnics, because we're part of the European Community, but on the western markets the laws are very rigorous and without the required quality [standard] you can't be competitive. Foreign distributors have recognised our product quality as well as our distribution service, so we started working with Austria and Belgium over time. All our pyrotechnics have CE certificates, which is the European standard today, and a prerequisite for sales on the EU market.

Why did you decide to go into the world of pyrotechnics?

Like all kids, I liked pyrotechnics during my childhood and over time, that game turned into work. In those years, especially during the 1990s, the pyrotechnic market was not regulated and as a company we were actively involved in drafting regulations and then developing the market in accordance with those regulations. After that, from a small family business, I managed to create a serious company that employs over 120 people during the sales season and is developing new products that are successfully marketed every year.

When and how did you become the market leader in Croatia?

We started with the sale of pyrotechnics back in 1993, first as a distributor for foreign brands and then as independent importers from China. Of course, there was no serious and well-organised sales system before, because not even the legal regulations were defined, but today, our company has the most selling points in Croatia. According to the number of sales outlets, ie chains we supply, and according to the number of our seasonal sales outlets, popularly known as pyroshops, we've been a distributor since 2009 in Croatia. We've been seriously present in the region since 2006, and in 2012 we took the lead. In Croatia, we supply a total of over 4,000 sales outlets.

If you do, how do you influence the development of the local community?

Like every responsible company, we work very closely with our local community. We're sponsors and donors for many activities and events and we're involved in a large number of humanitarian, cultural, sport and social events both in Croatia and in the region. So, within our capabilities, we help local communities realise their projects.

Is the law on sales in Croatia too high? And what is it like in the rest of the EU?

The law has set rules which apply to everyone. The provisions of the law primarily protect consumers and users. In that, there will always be those who are satisfied and those who are less satisfied with the prescribed rules, but we didn't invent the rules. A major problem is in controlling and enforcing the law due to a short sale period. We have always supported the more transparent [way of doing] business, and as such, a clearer and more concrete law, because only a market of that kind can function properly.

How many sales outlets (pyroshops) do you have in Croatia and beyond?

In Croatia, we have 260 of our own pyroshops and about 100 distributors. In other countries in the region, we have several of our own pyroshops and we serve over 350 sales outlets. But as time passes and given the fact that we're introducing some modern forms of marketing into our system, the story is expanding rapidly and in three years we expect to expand on the regional market.

What are your specialty stores and your distributors' stores?

Specialised pyrotechnic shops must obtain approval from the Ministry of Interior to conduct retail sales of pyrotechnic items. The conditions for such an approval include staff training, fire prevention, security protocols, anti-burglary protection and a variety of other conditions that ensure safe storage and the safe sale of entertainment pyrotechnics. Pyrotechnics is fun, but to be able to sell them, we as distributors have to meet a number of legal and safety rules.

How much is your annual income?

Orion as a group earns about 6 million euro in revenue depending on the season and on the market conditions. Of course, as a company, it's in our interest to grow, and every year we're investing additional resources into security, the education of our consumers, as well as the innovations that are indispensable if we want to keep up with modern world trends.

How do your sales go outside of the main season?

Out of the main sales season, that is, from January to November, a smaller part of the range is sold. Mostly specialised [items] for purposes such as naval pyrotechnics and rescue pyrotechnics. There are, of course, party pyrotechnics (confetti, cake fountains, sprays etc.), professional pyrotechnics and special effects that are always sought throughout the year, especially for some festivals, concerts and the like. We also produce a great number of fireworks and stage effects during the tourist season, and there are more and more wedding pyrotechnics which are always attractive.

What innovations in pyrotechnics are you introducing?

We're constantly working on the development and improvement of the safety-technical properties of pyrotechnics so that we can make our customers as safe as possible. We have two recognised patents. A more secure rocket system, a worldwide-recognised patent, followed by a patented security system for firecrackers and innovation called PyroBlock. Pyroblock is the latest technology for box fireworks that we have launched on the market. Now our fireworks are even better and even safer, so that users can enjoy their luxurious effects and our spectacular fireworks.

What are the trends in sales that today's customers look for the most?

As information and education grows alongside the fans of entertainment pyrotechnics, consumer trends and tastes are changing. Once upon a time, firecrackers made up 80 percent of sales, while today they account for less than 40 percent, and consumers are increasingly using our fireworks, rockets, fountains and Roman candles. Naturally, firecrackers will always be popular, but the trends are changing, and interesting new items are always expected from us as the market leaders.

How are you approaching the younger generation - events, collaboration with YouTubers and influencers?

We use all permitted channels for communication with our consumers. Today, we live in the digital age, so we've adapted to this trend which will soon become our strongest communication medium with the youth. Currently, social networking is in fashion, YouTubers and influencers closely monitor what's happening in this product segment. What is in and what is not in is created today by the media of the younger generation who capture everything on their vlogs and videos. Through these channels, we primarily want to act educationally and affirmatively to give the younger generation better quality information with an emphasis placed on security and regulation. Education through entertainment has always been effective, it is today just as it was before. Some things never change.

What are your business plans for the future?

The list of plans is time-consuming and is solely related to the development and production of safer and more quality products. We're an entertainment industry and our goal is to have safe entertainment successfully implemented. This is possible only by investing constantly in infrastructure, technology, equipment, and our expert associates. For this reason, we're able to announce the construction and expansion of the regional distributive centre in Koprivnica, and thus create a new need for workers. The planned value of investment in the distribution center and storage systems amounts to 1.5 million euro, and it will be the future of pyrotechnics in Croatia and in the region. This business policy has provided us with a leading position in the region as consumers have recognised our work and the effort that we invest into our products.

Mišel Jakšić, the mayor of Koprivnica stated that he welcomes every good entrepreneurial idea and investment, and expressed his desire to encourage young people to stay in the city.

"As the Mayor of Koprivnica, I'm proud of the economy of this city that we're increasingly developing every day. The business zones which are expanding, and the entrepreneurial incubator, where more and more young people are ready to start their own businesses, is our vision and desire to provide a decent life for young people The cooperation with Orion as the leader of the fun-pyrotechnic market is exceptional, and every year Orion sponsors our events as a responsible company in the local community. As Mayor of Koprivnica, I will always support all the important, however big or small entrepreneurial endeavors so that our young people remain here in Koprivnica, and so that employment gets as high as possible,'' the mayor concluded.

Make sure to follow our dedicated business and Made in Croatia pages for more information on Croatian companies, products and services, as well as doing business in Croatia, and the overall business and investment climate.

Click here for the original article by PD i VL native tim

An unusual but excellent agreement on cooperation signed between one Croatian university and Carlsberg Croatia is set to bring students closer to their potential employers, and connect theory and practice to help keep young people in Koprivnica.

As Poslovni Dnevnik writes on the 16th of November, 2018, on Wednesday, November the 14th, 2018, a press conference was held at the North University at the University Centre in Koprivnica, where the signing of a cooperation agreement between the Koprivnica educational facility and no less than Carlsberg Croatia was held. The press conference was attended by Helle M. Petersen, the president of Carlsberg Croatia's management board, dr. sc. Mario Tomiša, the vice president of the Koprivnica University Centre, associate professor. dr. sc. Vlado Tropša, the vice chancellor for teaching and student affairs, as well as other heads of study programs of the aforementioned University.

With signing the said cooperation agreement, a period begins in which students and the Koprivnica brewery (part of the Danish Carlsberg Group) are expected to find ways to work together. Student practices, the visiting of various experts from Carlsberg at the university, as well as connecting through other projects will be mutually beneficial.

Helle M. Petersen, CEO of Carlsberg Croatia, noted during the introductory part of the conference: "The collaboration of the economy and educational institutions is the only safe way for the whole society to progress. Koprivnica is a wonderful place to live, with many advantages offered by its residents, and for young people to remain here we need to connect a professional perspective to it, too. At Carlsberg, we're proud that we've always been a learning organisation and have been developing our people, and that's why we want young people to recognise the benefits of working in an international environment, a company that deals with such a passionate and interesting thing, as is beer production.''

Assoc. prof. dr. sc. Mario Tomiša emphasised that this cooperation will strengthen the link between Koprivnica and international companies: "Koprivnica is a small town, and we who were born here have been living with Carlsberg since our youth, our family, friends and our associates work there, the Carlsberg connection is a long-standing and powerful one, and North University wants this link to be deepened even further, to the satisfaction of all three sides.''

During the conference, Tomiša emphasised that the agreement encompasses cooperation on scientific research and professional projects, cooperation on teaching at the university in question, as well as in the development of knowledge, skills and competences of students.

"We're happy that Carlsberg Croatia has recognised the quality of our studies and has decided to support us in an effort to provide students with more through their studies. Lifelong education, programs which connect theory and practice, and connecting students with their potential employers; these are all areas in which the university has impressive results. This year, the university opened up a new undergraduate degree in Food Technology, and in the second and third year, we focus on beer production. Today, we have 27 study programs at the university, so we can cooperate with Carlsberg on a series of other directions such as economic and technical logistics, sustainable mobility and logistics, media design, business, and management,'' concluded Tomiša.

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With the acquisition of numerous shopping centres, is Croatia entering a new European retail market?

As Ana Blaskovic/Poslovni Dnevnik writes on the 15th of November, 2018, the consolidation process continues on the domestic real estate market; with Austria's Immofinanz announcing the takeover of two shopping centers, STC Osijek and STC Valpovo, as part of a larger regional transaction worth about 90.5 million euro.

Immofinanz is also taking over eight ''retail'' parks in Slovenia and Serbia, as well as here in Croatia, totaling about 68,000 square metres. The value of the part of the transaction pertaining to the Republic of Croatia has not yet been published, but the entire package, Croatia's part relates to the smallest surface area of approximately 13,500 square metres, from which the Austrian MID group is leaving, the group is probably best known for its relations with the Garden Mall in Zagreb, which was sold to Supernova earlier.

In addition to Croatia, the MID group handed over three ''retail'' parks in Maribor, Krško and Ptuj in neighbouring Slovenia to Immofinanz, totaling 22,000 square metres. Owing to that, Immofinanz's Slovenian portfolio has risen to 52,300 square metres of rentable surface.

The Serbian retailer is MPC group, founded by Serbian businessman Petar Matić, and according to the latest available data, a third of the company was sold to Atterbury Europe back in 2015. Acquisitions in Serbia include 32,000 square feet of rentable land in Subotica, Borčija, and Smederevo. Stop Shop, Immofinanz's brand of retail parks, will in the future operate in nine locations and across 83,600 square metres.

Among the dealers are very well known names like Deichmann, H&M, C&A, Takko, KiK and Jysk, and the shopping centres will soon undergo rebranding, after which they will operate under Immofinanz's Stop Shop concept.

"These acquisitions reinforce our position as the leading European ''retail'' park operator, and, when speaking about Croatia, this marks our entry into a new European retail market that is extremely interesting to our international leasing companies. Good locations, excellent business, good competitiveness of local situations and classical ones, and a healthy mix of tenants are the main features of these attractive investment opportunities,'' said Dietman Reindl, the executive director of Immofinanz in a statement.

The reporters say that the exit of MID from two more centres (after leaving Zagreb's Garden Mall and centres in Koprivnica and Sisak) is the expected consequence of the pace of the new cycle on the market given the fact that its strength lies in project development, and for it to be the operator.

Click here for more business news from Croatia.

Click here for the original article by Ana Blaskovic on Poslovni Dnevnik

When Marin Pucar took over Podravka back in February last year, he comically stated, "Once you go Podravka, you're always Podravka!"

As Marina Sunjerga/VL/Poslovni Dnevnik writes on the 11th of November, 2018, Pucar experienced returning to the large domestic food company, at which he worked for twelve years, very emotionally. Pucar also has many goals and plans set up for the huge company to aim for.

Pucar's big plans for Podravka were soon realised because the Koprivnica-based food company achieved net operating profits of a massive 186 million kuna during the first nine months of 2018, which is the best result and the highest operating profit in Podravka's long history. These sparkling financial results saw employee salaries increase by 1000 kuna and the company get closer to reaching its goal of being a food business consolidator in Croatia, these praiseworthy achievements brought Pucar to his very well-deserved nomination for businessman of the year for 2018.

It is also important to point out his engagement in resolving the crisis in Agrokor from his position as the president of the association of Agrokor's suppliers, which acted uniquely to protect the interests of domestic companies.

''Podravka is a very good company'', said Pucar when he came to the head of the company, but added that it can and should be better because Podravka is much more than just its numerous brands and products.

In just a year and a half of his mandate, Marin Pucar has achieved excellent results with his team. He announced Vegeta's strong development, involving a wide range of products. In his vision and strategy, Vegeta will be branded completely with the culinary field, and all kinds of dishes.

''That's the aim, if we succeed, and we believe that we will,'' Pucar said in an interview for Večernji list.

''We'll secure Vegeta for another hundred years, and add new, additional value for Podravka,'' added Pucar.

Among the priorities, Pucar also emphasised the improvement of the rights and the material conditions of employees as the company's most valuable resource. ''Without satisfied workers, there can be no successful company,'' Pucar said. Namely, The salaries of the lowest paid employees in Podravka will increase by about 1000 kuna a month, which is one of the moves other entrepreneurs must follow if they truly want to retain quality workers.

The lowest wage in Podravka now amounts to 4,000 kuna per month. Through a collective contract, Podravka's employees have been granted a jubilee reward, and the company will pay them 1000 kuna per year for voluntary pension savings, which will eventually provide them with larger pensions when they retire. One of the goals that Pucar has set in front of him is, as stated, to position Podravka as a consolidator for the food industry, as well as the generator of the development of domestic agricultural production.

Accordingly, the company is expanding its cooperation with subcontractors and domestic OPGs to ensure that by the year 2022, its global brands such as Vegeta are secure. To achieve this goal requires a two to three year investment cycle, but the capacities needed by Podravka are sufficient to trigger a serious segment of Croatian agriculture. Part of the financing of these investments was secured by the company from EU funds.

Podravka itself has an impressive investment potential of around 200 million euro, so new acquisitions could realistically be expected. The company's presence on numerous traditional markets such as that of Poland, Hungary, and Russia, is set to increase. Pucar also played an important role in the rehabilitation of the formerly ailing Agrokor Group from the position of the president of the Association of Agrokor's suppliers.

The challenge was to protect and preserve the rights and interests of Agrokor's suppliers, while at the same time not compromise the position of Agrokor, and Agrokor's giant Konzum as the largest domestic retail chain. Unlike various other companies, Podravka didn't stop its deliveries to the then suffering Konzum, thereby confirming its responsibility for the continuation of Konzum's operations and the preservation of jobs.

The successful running of this extremely complex process resulted in the stabilisation of Agrokor's operations, a large part of the Croatian economy, and the preservation of Agrokor's supplier stability.

Otherwise, Pucar has spent most of his career in the food industry. He started his professional career at Gavrilović back in 2001, and one year later, he was in Podravka's meat industry, Danica, where he was the director of sales, marketing and development. He quickly moved to Podravka's high position of director for the Croatian market, and from 2008 to 2012, he was a member of the management of the company.

After five years with Podravka, he went to Zvečevo, which he led before returning as Podravka's main man.

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Click here for the original article by Marina Sunjerga/VL on Poslovni Dnevnik

Good news for students in Koprivnica-Križevci County!

The programme is called BusKo.

An important message from Radnik, the winner of the Golden Kuna Award for the best large company.

Croatia's Hangar 18 has managed to achieve this outstanding recognition owing to its remarkable business results from 2017.