ZAGREB, 29 April (2022) - The Podravka Group generated a net profit of HRK 88.8 million in the first quarter of 2022, a decrease of 15.6% over the same period in 2021, the Koprivnica-based food company said in a financial statement on Friday, noting that the direct cause of the decreased profit was the Ukraine crisis.

EBITDA (earnings before interest, tax, depreciation and amortisation) was 7.7% lower while net profit was 15.6% lower than in 2021, which is a direct result of the Ukraine crisis, Podravka said in a press release.

Sales revenue amounted to HRK 1.18 billion, or 8.6% more compared to the same period last year.

The stronger revenue was generated by the food segment (+10.8%), while the pharmaceutical segment registered a growth of 0.6%.

Podravka generated a loss of 6.5% on the Russian and Ukrainian markets in 2021.

The company is continuing with its optimisation of costs and increasing efficiency to buffer the impact of increased input costs.

Podravka further reported that as of 1 March wages had increased by an average of 11% and the company would invest a further HRK 35 million this year to increase wages.

(€1 = HRK 7.557837)

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ZAGREB, 9 June, 2021 - Over the next five years, the Podravka Group plans to invest about HRK 5 billion in the modernisation and digitalisation of production and logistics, marketing and acquisitions, the group said on Wednesday after the Supervisory Board green-lighted its business strategy until 2025.

"The implementation of the adopted strategy includes investment of about HRK 1.7 billion in the modernisation and digitalisation of production and logistics processes, about HRK 1.4 billion in marketing to achieve organic growth, and about HRK 2 billion for acquisitions," Podravka said in a statement.

The group's Food division will focus on product and packaging development and innovation to increase the availability of products and adjust them to the needs and habits of different consumer groups.

The business strategy also sets the criteria for the consideration and selection of acquisitions. With possible acquisitions in the Food division, Podravka aims to strengthen its presence and position on markets to pursue further accelerated growth.

The Pharmaceuticals division (Belupo) will focus on strengthening growth on international markets, notably in central and eastern Europe, expanding its portfolio with products  in additional anatomical, therapeutic and chemical groups, and boosting growth on the domestic market by introducing new products.

(€1 = HRK 7.5)

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ZAGREB, 1 June, 2021 - Podravka's project of a solar power plant, worth HRK 10.3 million, will be co-funded with a HRK 5.2 million grant by the European Union and the Croatian government under the Rural Development Programme, the Koprivnica-based food factory reported on Tuesday.

"The grant was awarded by the Ministry of Agriculture pursuant to a decision by the Agency for Payments in Agriculture, Fisheries and Rural Development, and pursuant to Podravka's application for implementation of the Sub-measure 4.2 'Support for investments in the processing, marketing and/or development of agricultural products' and implementation of operation type 4.2.2. 'Use of renewable energy sources'," the company said.

The expected period for return on investment with 50% support is 3.5 years.

The investment is valued at HRK 11.7 million, of which HRK 10.3 million is to be used for the construction of the solar power plant, while HRK 1.4 will be spent on the development of the measurement facility and the necessary transformer station.

"Podravka – Danica" 2.4 MW solar power plant is to be built at the Danica Industrial Zone in Koprivnica.

(€1= HRK 7.5)

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ZAGREB, 30 April, 2021 - The Podravka Group generated a net profit of HRK 105.2 million in the first quarter of 2021, an increase of 15.6% over the same period in 2020, the Koprivnica-based food company said in a financial statement on Friday.

Sales revenue amounted to HRK 1.08 billion or 12.1% less compared to the same period last year.

Podravka said that the decrease in revenue had been expected and was in line with business plans.

"The expected fall in sales revenue compared to 2020 was due to the unusual withdrawal of goods from buyers and extra stocks created in March last year as a consequence of the lockdown in most of the countries where Podravka is present."

The company's supervisory board adopted the revised business results for 2020 which show that the group had generated a net profit of HRK 248.9 million, or 12.3% more than in 2019.

 (€1 = HRK 7.5)

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February 3, 2021 – Mr Plenkovic smiled warmly as he was presented with a special edition Vegeta carton, which replaced the face of its famous chef's mascot with his own. He was on a visit to the makers of the world-famous condiment

When it comes to Croatia's most-famous brands, the cooking condiment Vegeta is pretty much at the top of the tree. Its instantly-recognisable blue packaging and iconic chef's head mascot can be seen at supermarkets across much of the world. No wonder, then, that Croatian Prime Minister Andrej Plenkovic smiled warmly and laughed when presented with a special edition Vegeta carton, which replaced the face of its famous chef's mascot with his own.

© Danica.hr / Podravka

The Croatian Prime Minister was on a visit to the Koprivnica-based makers of the world-famous condiment when he was presented with the special edition Vegeta. The gift was donated to him by the management of Podravka, the company that makes Vegeta.

Mr Plenkovic's visit actually took place some time ago, but the picture of the presentation of the special edition Vegeta only came to light on Tuesday 2 February 2021 when published in danica.hr, after it had appeared in the Podravka factory newsletter.

The iconic Vegeta chef, who has what some might describe as a 'French moustache', has been the mascot of the most famous exported Croatian food product for many decades. He was put on the packaging way back in 1964 and has been a featured part of Vegeta packaging ever since.

Vegeta packaging through the years, with the ever-present 'French chef' mascot © Podravka

The Vegeta condiment celebrated its 60th birthday in 2019. Vegeta was first devised in 1959 at the food laboratory of Podravka by a team led by Professor Zlate Bartl. In Koprivnica, where it was first made. they call it Podravka's loose gold because Vegeta was the fastest-selling product of the company in its early years and the main reason for the rapid development of the company. Vegeta is popularly put into soups and stews to give them more flavour. Among its ingredients are small pieces of dehydrated vegetables like carrot, parsnip, onion, celery, plus spices, salt and herbs like parsley.

January 4, 2020 – A map showing production across the former Yugoslavia details the sustained prosperity of many Croatian favourites as some of the strongest Croatian brands are shown not only to have survived but have succeeded following independence

Media across Croatia, Bosnia and Serbia have surprised younger readers and reminded older readers with the publication of a map detailing production in the former Yugoslavia. While this trip down memory lane has caused a range of reactions across the countries of the former republic, looking at the map from a purely Croatian perspective gives some enlightening information. Namely, many of the strongest Croatian brands visible on the map are recognisable today. Some of the strongest Croatian brands not only survived independence but have since grown.

Bajadera - one of the most popular products made by Zagreb-based chocolate and confectionery manufacturers Kraš

Zagreb-based chocolate and confectionery manufacturers Kraš, Požega-based confectionery and drinks manufacturers Zvečevo, oil company INA, Koprivnica-based food company Podravka and Koprivnica-based pharmaceuticals company Belupo, vitamin drink Cedevita, Varaždin-based food company Vindija, Vukovar shoemakers Borovo, Varaždin clothes designers and manufacturers Varteks and multi-use condiment Vegeta are just some of the strongest Croatian brands that are present on the map. You are still likely to see these brand names on many Croatian high streets. Some have succeeded in reaching further into international markets since Croatian independence.

Croatian-made condiment Vegeta is sold all over the world

Of course, not every brand visible on the map of Yugoslavia production has fared so well. In their coverage of the map, Ri.portal reminds that “Some of the Yugoslav products were used by literally the whole world - ships, cars, planes, trucks, weapons and even computers were produced... However, many of these companies no longer exist or are bankrupt.”

In their coverage of the map, Bosnian website Klix reminds that Croatian shipyards Uljanik in Pula and 3 Maj in Rijeka were at world level and produced large ships for customers from all over the world. Split-based shipyard Brodosplit, which can also be seen on the map, survives to this day.

Croatian vitamin drink Cedevita comes in a range of flavours

Ri.portal goes on to remember that Yugoslavia was one of only five countries in Europe at the time that manufactured its own computers. “Probably the most famous is the Galaxy, while the first computer produced was the CER-10,” they say. One of the Yugoslav computer makers on the map, popular in the late 1970s, was Digitron, based in Buje in Istria.

Sadly, not all of the strongest Croatian brands have made it until today. Famous tractor and agriculture equipment manufacturer Tomo Vinković of Bjelovar is no longer in production. Their famously-reliable machines are much in-demand on the secondhand market. Two new tractor manufacturers, Hittner doo and the Prima tractor factory still make tractors in Bjelovar.

As Poslovni Dnevnik writes on the 23rd of July, 2019, the supervisory board of Podravka d.d. confirmed at a recent session that they are very satisfied with the unaudited results of the Podravka Group's business for the first half of 2019. In the second quarter, positive business trends have continued on all levels.

After 2018, which was one of the most successful business years in Podravka's very long history and the record first quarter of this year, the group has continued on with record business results in the first half of 2019. The highest achieved semi-annual profit of 140 million kuna is primarily due to organic growth without any extraordinary impact. This is the best operating result for Podravka and the highest operating profit of the first half of its long history, which further confirms Podravka's excellent performance during the first half of the year.

"We're proud of the business results achieved, and we're particularly pleased that with Culinary sector, as our most profitable program, we have managed to do a turnaround, and from a downward trend, innovative projects have achieved significant growth. We believe that we will continue with these positive business trends at all levels, which now represent a certain continuity, and in addition investing in the modernisation of our Food Processing Technology, and continuing to improve the status of our employees,'' said Marin Pucar, CEO of Podravka.

The Podravka Group's net profit for the first half of the year was 140 million kuna, or 16.1 percent more than in the comparative period of last year. The growth of sales of a profitable assortment with simultaneous control of operating costs resulted in impressive double-digit profitability growth.

The sales revenue of the Podravka Group amounted to 2,139.5 million kuna, representing growth of 5.1 percent compared to the same period back in 2018. Sales growth was affected by the growth of two of the company's business segments, Food and Pharmaceuticals, due to increased sales and marketing activities and the demand for newly launched, innovated products.

The Food segment published sales amounting to a massive 1,684.3 million kuna, or 5.1 percent more than in the comparative period of 2018. Within the aforementioned segment, all business programs achieved sales growth and achieved growth of their very own brands by 4.8 percent. The largest growth was realised by the Fish segment with 17 percent more growth, Children's Foods, Desserts and Snacks all at 11.2 percent more, and 5 percent growth was enjoyed by Podravka's Culinary Business Program.

The second segment of the Podravka Group, Pharmaceuticals, generated sales of 455.2 million kuna, which represents growth of 5.2 percent compared to the same period of 2018. Pharmaceuticals' own brands grew by 3 percent, mainly due to sales growth in Russia and here at home in Croatia.

Regarding the Podravka Group's sales revenues by region, the largest relative increase of 13.2 percent was recorded in Western Europe and overseas countries, followed by Eastern Europe with 9 percent and the Adria region as the most significant market of Podravka Group, which achieved growth of 4.8 percent.

The share price for the same period last year has risen by 83 kuna, from 322 kuna to 405 kuna, up by 25.8 percent.

The focus of Podravka's management in the coming year will be on the implementation of a business strategy that can be summarised by three key points: the focus on traditional markets where the Podravka Group is already a well-established manufacturer, investment in the further development of its own brands, and product innovation and efficient cost management.

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