Podravka Group’s results in line with last year, with lower profit

In the first nine months of 2025, the Podravka Group increased its operating revenue by 0.2% compared to the same period last year, reaching €768.1 million, which represents a rise of €1.2 million. The comparison includes a simulation of the 2024 business results adjusted to incorporate the acquired agricultural companies.

Revenue from the Food segment amounted to €448.9 million, up 2.3%, while the Pharmaceutical segment generated €135.5 million, an increase of 3.9% compared to the first nine months of 2024. The Agriculture segment, specifically Podravka Agri, which has been operating within the Group since January 31, 2025, recorded revenue of €187.8 million.

Normalized operating profit before depreciation and amortization (EBITDA) for the first nine months of this year reached €132.8 million, which is 0.3% higher than the comparable 2024 base. The Food segment recorded a 3.4% decrease in normalized EBITDA, while the Pharmaceutical segment posted a 2.6% increase. The Agriculture segment (Podravka Agri) achieved a 5.1% increase in normalized EBITDA compared to the results of the first nine months of the previous year, when this segment was not yet part of the Podravka Group. Normalized net profit for the same period amounted to €61.5 million, down 6% or €4 million compared to the previous year’s comparable base. The Food segment, which carries the loan for financing the acquisition of agricultural companies, recorded a decline in net profit, while the Agriculture and Pharmaceutical segments achieved growth. The reported result was influenced by an accounting difference between the value of the acquired agricultural segment in the equity of its former owners, the Fortenova Group, and the market price paid by Podravka. This difference results from accounting rules and has no real effect on business performance.

The results of the Food segment, the Group’s main export driver, were strongly affected by the deterioration of macroeconomic conditions in several export markets. These include higher tariffs in the United States, a slowdown and decline in retail trade in Poland, Romania, the Czech Republic, Slovakia, and Slovenia, as well as a recession in Germany. The exports of the Agriculture and Pharmaceutical segments are not primarily oriented toward these markets and therefore show more favorable key indicators.

In terms of product portfolio performance, almost all business programs within the Food segment and categories within the Pharmaceutical segment recorded growth compared to the first nine months of 2024. In the Food segment, the strongest growth was recorded in Spreads and Confectionery (+12%) and Meat Products (+10.2%). Within the Pharmaceutical segment, prescription medicines increased by 5.2%, while over-the-counter products grew by 3.5%.

At the beginning of the third quarter, Podravka continued to actively manage the portfolio of companies comprising the Podravka Group. With the approval of Podravka Inc., the subsidiary Žito Ltd. Ljubljana decided to sell its Confectionery division, which includes the Šumi, Gorenjka, Herba, Mistica, and Bali brands, with the aim of focusing on its core bakery business. The sale and purchase agreement was signed in Ljubljana between Žito Ltd. Ljubljana and UPI Star Ltd. Sarajevo, which will take over the entire confectionery business — including employees, brands, and the Šumi factory in Krško and the Gorenjka factory in Lesce — with the intention of continuing to develop and strengthen this segment.

Earlier this year, Podravka also presented its new Group Business Strategy to 2030, covering all three business segments — Food, Agriculture, and Pharmaceuticals. The Strategy focuses on growth driven by productivity, innovation, sustainability, and investment in modern technologies, with a strong emphasis on international expansion and competitiveness. Through its 2030 Strategy, the Podravka Group clearly defines its ambition to become an even stronger international player, building on excellence, high added value, and responsible business practices. In an era of global challenges, Podravka positions itself as an agile company that not only responds to but also anticipates and leads production and business trends.

Another successful agricultural season was also completed. Once again, the focus was on tomatoes, a crop in which Podravka became self-sufficient last year, meaning that all the quantities required for its products such as tomato paste are now produced exclusively on Croatian fields. This year’s yield increased by 50%, with a total of 46,000 tons of tomatoes processed at the Fruit and Vegetable Factory in Varaždin.

During the third quarter, Podravka also faced a case of African swine fever at its Sokolovac farm in Baranja. The positive finding was recorded despite enhanced biosecurity measures and continuous monitoring. The farm specializes in pig fattening, representing the final stage of the production cycle, with no animal movement to other farms. Following the confirmation of African swine fever by the State Inspectorate, 9,829 pigs were humanely culled. Considering the overall situation, including the still strong infection pressure in the Osijek-Baranja and Vukovar-Srijem counties, Podravka introduced additional safety protocols and operating regimes across all its farms, on top of the already high biosecurity standards.

At the start of the final quarter of the year, Podravka also appointed a new Chairman of the Supervisory Board. Dubravko Štimac was elected on October 20, 2025, succeeding Damir Grbavac, who remains a member of the Board. In addition, Belupo appointed a new Management Board member — Nenad Pavletić, who joined President Hrvoje Čeović and Board Member Tihomir Heđever on September 15, assuming responsibility for marketing, sales, and overall market operations.