Business trends for the Podravka Group for January-June 2001

Sales figures within the Podravka Group for the first six months of 2001 are set to record a growth in comparison with the same period of 2000. In the first half of 2001, there has been an approximate 11% growth in sales on foreign markets in relation to last year, while sales on the local market are estimated to be at about the same level as the previous year.

With regard to foreign markets, sales have grown in Poland, the Czech Republic, Bosnia and Herzegovina, Germany, and Russia. More than 2% of total revenue was realised last year on the Czech market, and an increase of 29% has been recorded in the first half of this year when compared with the same period in 2000. On the market of Bosnia and Herzegovina there has been a 20% growth for the first six months of 2001 in relation to the same period in the previous year. A total of 5.4% of overall revenue of the Podravka Group in 2000 was realised on the market of Bosnia and Herzegovina. On the German market, a 15% growth has been estimated in relation to the first six months of 2000, whereas on the Russian market a 74% growth is expected in comparison to the same period of last year. A growth of sales has also been recorded in Yugoslavia, Greece, Macedonia, the Baltic countries, Romania and North and South America.

Regarding the financial position of the Podravka Group, the level of short-term and long-term debt has decreased compared to the same period last year. Moreover, in relation to the first six months of 2000, accounts payable and accounts receivable have fallen in the first half of 2001.

Regarding product groups, a trend of growth in sales has been recorded for the first half of 2001, with a sales growth of products under the Vegeta brand reaching about 14% in comparison to the fist six months of 2000. A growth of 12% has also been realised by Podravka Food (soups, Fant, partly-cooked dishes, food seasonings), whereas sales of the range of drinks have been estimated to be 27% higher than in the first six months of 2000. An increase in the sales of bakery and mill products of about 23% is expected in relation to the same period of last year, as well as a 14% growth in the sales of the product range of Fruit and Vegetables in relation to the first six months of 2000.