Podravka plans further expansion
Approval has been given to the engagement of financial advisors to assess the strategic options of the Podravka Group aimed at intensifying growth. Podravka is also considering opportunities for future acquisitions on its strategic markets which would contribute to further expansion on foreign markets.
The Supervisory Board of Podravka has approved the engagement of financial advisors to assess the strategic options of the Podravka Group aimed at intensifying growth. Consistent with the new strategy, mission and vision, different possibilities for growth are currently being considered and analysed, including acquisitions, strategic partnerships and other opportunities for further expansion on the markets where Podravka is already active. One such form of co-operation has already been realised with the Italian company Barilla on the Polish market, the second most significant market for Podravka. Podravka is now the exclusive distributor of Barilla’s products in Poland.
As mentioned earlier, the Podravka Group plans an average annual growth of 10%, which can be achieved partly in an organic manner, and partly through acquisitions or strategic partnerships with other companies in the same branch. Podravka’s vision includes its operation on the global market, and in line with this, options are being examined that would contribute to the growth of the company and an increase in its value. The context of this assessment of Podravka’s strategic options is the omnipresent concept of globalisation, membership of the WTO which implies the lifting of duty tariffs and similar barriers to the flow of goods, capital and services, the situation on the markets where Podravka sells its branded products, and current trends in the food industry.
In addition to a number of challenges that the mentioned processes bring along, there are also many opportunities which Podravka, as the leading food producer in the region, seeks to exploit. Consequently, the possibilities for acquisitions on Podravka’s strategic markets which would contribute to its further expansion on foreign markets are being considered.