Economy

The economic growth is one of the basic principles of the company. Year after year Podravka has been noticing the growth in selling almost of all of their products. Alongside with the growth, Podravka has integrated also the principles of socially responsible business managing.

• In 2006 the earning of sellings have risen for 1%, while in 2005. they have risen for 4%. The decrease of the rise of earnings was caused by the expiration of the contract of distribution of Nestle products for the market of Bosnia and Herzegovina and Macedonia and also by a partial interruption of the distribution of the Nestle products on the Serbian market in the last quarter of 2006. Podravka compensated the decrease of earnings of the sellings of goods with selling their own products.
• By investing in marketing, research and development and through acquisitions of new brands, Podravka has decided on organic growth.
• In 2006 a series of new products has been launched and negotiations started buy the brand Eva (tinned fish) of the Croatian firm Adria and brands Warzywko and Perfecta (universal and special food seasonings) of the Polish firm Kamis.
• The overall operative costs in 2006 rose 1% with regard to the year 2005. The cost structure has remained the same. The costs of sales and distribution of the products and the costs of sold products have risen for 1% due to the trends of the rise of marketing costs since 2004.
• The rise in debt ratio of the Podravka Group is the basic reason of the rise of overall commitments because of the acquisition. The credit volume has been increased for 18% with regard to the year 2005 which caused the higher costs of financing.
• In 2004 EBRD leaves the ownership structure of Podravka. Podravka buys off and nulls the preferential shares and pays out the dividends for the year 2004 to the owners of regular shares in the amount of 5,00 HRK per share, and the same amount was paid for the years of 2005 and 2006 respectively.
• The rise in staff costs (gross income, travel expenses, jubilee payments, Christmas bonuses, Easter bonuses, etc. ), is affected by a constant improvement of the professional level of employees, the payment of overtime work, the efficiency rise, stimulation, stimulation and the rise of other gross earnings in nature.
• Obligations to the state. The most important fluctuation of the value of the tax on profit Podravka marks in 2005 because of the tax benefits of the area of middle Europe. The taxes and contributions of and on salalries have been marking a significant rise in the last few years.

Download

• The report on sustainable development of The Podravka Group for the 2006 year - The economic impact Podravka za 2006. -