Podravka Group business results for first half 2010

In the first half 2010 Podravka Group net profit is HRK 31.2 mln which is significant increase of 80% comparing to the same period last year.

Podravka Group net profit without one-off items increased by 61% and is HRK 57 mln. Operating costs have decreased by HRK 92.2 mln comparing to the same period last year.

The highest decrease is achieved by general and administrative costs of 19% or HRK 28.1 mln. In the following period after optimizing the organization structure further decrease of general and administrative costs in the operating costs is expected. Decrease of other operating costs as well as significant decrease of financing costs is also noted.

Podravka Group total sales in the first half 2010 was HRK 1,662.7 and is reduced by 4% comparing to the same period in 2009. Sales of strategic business area (SBA) Food and Beverages amounted to HRK 1,315.8 million, marking 4% decrease, while SBA Pharmaceuticals with HRK 346.9 mill. recorded 6% decrease in sales. Despite sales decrease in the domestic market, foreign markets achieved 2% growth.

On publishing the business results, Podravka Management Board president Mr. Vitković said: „We can say that the business operations of Podravka Group are stabile and in this difficult economic situation Podravka shows significant advantages of international aspect of its business. Currently we are focused on categories and foreign markets with biggest growth potential, and our active participation is shown in the project of introducing special food seasonings in the market of Poland, which for us represents an entry into new category through Vegeta brand expansion. Apart from excellent sales results in the markets of Central and Western Europe, in the first half 2010 Podravka Group improved profitability by significant reduction of operating costs. Efficient costs management is the result of the work of the Management Board, but also all of the employees who are supporting us in further rationalization of our business." 

More information on Podravka Group business results in the first half 2010 on Podravka web site at Investors/Financial reports/Disclosure of business results or you can download the document here:

• Podravka Group business results for first half 2010 (PDF, 1.28 Mb)