Business results of the Podravka Group for the first six months of 2003

At a meeting held on 28 August 2003, the Supervisory Board of Podravka approved the business results of the Podravka Group for the first six months of 2003.

The revenue realised by the Podravka Group in the above period amounts to HRK 1,601.1 million, which is HRK 279 million, or 21%, up on the same period in 2002. Within the structure of total revenues, revenues from sales make up 95.3%, financial revenues 2.5%, and other revenues 2.2% of total revenues.

In the period from January to June 2003, the Podravka Group realised revenues from the sales of products and services to the amount of HRK 1,526.6 million, which is about HRK 300 million, or 24%, more than in the same period of the previous year. Of this amount, 54% was realised on the domestic market, and 46% was achieved through sales on foreign markets.

Revenues from sales on the domestic market amount to HRK 824.1 million and are HRK 141,8 million higher than in the previous year, which means that a 21% growth of revenues from sales was recorded over the same period of the previous year. Revenues to the amount of HRK 702.5 million were recorded on foreign markets, which is HRK158.3 million, or 24 %, higher compared to the same period in the previous year.

Within the sales revenue structure for January-June 2003, the Vegeta brand realised HRK 266.1 million, which is less than in the same period of the previous year, and is the consequence of less favourable results from sales on the markets of Poland and the Baltic States. Following Vegeta in the sales revenue structure are Podravka Dishes – soups, stock cubes, semi-prepared dishes, instant soups and Fant with HRK 131.5 million, which represents a 4% growth over the same period of the previous year. Lino, Dolcela and Kviki realised revenues from sales to the amount of HRK 126.7 million, which is 5% more compared to the same period of the previous year. Meat and meat products realised revenues from sales to the amount of HRK 118.2 million, which is 9% more than in the same period of the previous year. Fruit and vegetables realised revenues from sales to the amount of HRK 99.2 million, which is a 14% growth over the same period of the previous year. The beverages programme – the Studena and Studenac brands – realised revenues from sales to the amount of HRK 82.7 million, and this is 34% more than in the same period of the previous year, while mill and bakery products realised revenues from sales to the amount of HRK 28.8 million, which is a 19% growth over the same period of the previous year.

Pharmaceuticals and cosmetics recorded revenues from sales to the amount of HRK 293.4 million, which is 9% more than in the same period of 2002. Commercial goods realised sales revenues to the amount of HRK 225.9 million, primarily thanks to the distribution of Nestlé products, resulting in a significant growth in sales.

On the markets of South-Eastern Europe a 56% growth has been recorded over the same period of the previous year. The markets of Central Europe and Germany doubled their sales over the same period of the previous year (index 203). A 23% growth in sales was realised on the markets of the USA, Canada, Western Europe and Scandinavia over the same period in the previous year. On the project markets (Australia, Romania, Bulgaria, and others) sales grew by 28%, while on the markets of Eastern Europe, they are 8% higher than in the same period of the previous year.

During the first six months of 2003, Podravka’s meat processing industry, Danica, had positive business results. The Podravka Group sold its shares in the Hotel Podravina. The cycle of investments is continuing: the Podravka Dishes factory is nearly completed, and the Podravka Management Academy – POMAK – was founded with the goal of developing the managerial knowledge and skills of Podravka’s employees, which are necessary for the successful achievement of the company’s business goals.