A HRK 125 million increase of the Podravka Group sales revenue

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  • The sales of the Podravka group in the first year half of 2008 amounted to HRK 1,708 million which represents an increase of 8%
  • Sales growth achieved on all market groups
  • The Strategic Business Area (SBA) Food and beverages achieved a sales growth of 7% while the SBA Pharmaceuticals had a growth of 12%
  • The sales of Podravka brands amounted to HRK 1,177 million which represents a growth of 15%
  • Belupo took over the leading position in the sales of OTC painkiller drugs on the market of Croatia

In the first year half of 2008 the total sales revenue of the Podravka Group amounted to HRK 1,708 million, which is an increase of HRK 125 million, respectively, 8% compared to the results of the same period in the previous year. The net profit of the Podravka Group in the observed period totals HRK 23 million and represents a growth of 3%.

The sales of the SBA Food and beverages totalled HRK 1,393 million which is a 7% growth of sales. The sales growth generates from the growth on foreign markets (15%) while sales on the market of Croatia remained at last year's level, with a change in its structure in favour of Podravka brands.

The positive sales trend of all Podravka brand product groups continued in the second quarter reflecting increased sales of Podravka brands in the amount of HRK 151 million. Podravka brands achieved sales of HRK 1,177 million in the observed period, which is a 15% growth, while the organic sales recorded a growth of 10%.

The category Meat products and canned fish recorded a growth of 19%, Podravka dishes 16%, Baby food, sweets and snack 10% and Food seasonings 8%, while the highest relative growth of 40% was achieved in the category Beverages mostly generated by the sales of the Lero brand. The other two Podravka acquisitions, Eva and Warzywko, also produced good sales results. Podravka's brand of canned fish - Eva recorded an increase of sales revenue in the amount of 28% on the domestic market and 53% on foreign markets. The sales of the Warzywko brand on the market of Poland, where an extra sales stimulus was triggered through the marketing campaign «Warzywko - the largest amount of vegetables in your kitchen», significantly contributed to the sales of the product group Food seasonings on foreign markets.

The sales revenue of the SBA Pharmaceuticals in the first year half of 2008 amounted to HRK 313 million which is a growth of 12% compared to the same period in the year 2007. The sales of the SBA Pharmaceuticals increased on the market of Croatia by 4% contributed mostly by the sales increase of prescription drugs (3%) and OTC products (6%).

The continued growth of the sales of Neofen and Lupocet resulted in Belupo taking over the leading position in the sales of OTC painkiller drugs on the market of Croatia. The most significant foreign growth of sales of the SBA Pharmaceuticals was achieved on the market of South-East Europe (67%) on the grounds of the sales growth on the market of Bosnia and Herzegovina (150%). The growth of the Bosnia and Herzegovina market is partly generated by the organic growth of 16% and the sales from Farmavita which Belupo started recording in the second quarter of 2008.

In the observed period, 52% of the total sales revenue of the Podravka group was achieved on the market of Croatia. Sales on the market of Croatia totalled HRK 894 million which is a sales growth of 1%. A change in the structure of sales of the SBA Food and beverages had influence on the level of sales so that the sales growth of Podravka brands (15%) compensated the drop of sales of commercial goods of 67%. Most of the sales of the SBA Pharmaceuticals (70%) was realised on the market of Croatia.

Sales in the amount of HRK 815 million was achieved on foreign markets which represents a growth of 17% generated by the growth of all market groups. The highest increase of total sales was achieved on the market of South-East Europe (19%) mostly contributed by the growth of sales of the SBA Food and beverages of 12%. Sales of the SBA Food and beverages on foreign markets recorded a 15% growth on the grounds of the Podravka brands sales growth of 14%. The highest increase of Podravka brands was recorded on the markets of South-East Europe (15%) and Central Europe (20%). Together with the sales growth of 67% on the market of South-East Europe, the SBA Pharmaceuticals recorded a 13% sales growth on the market of Central Europe.