Podravka Group business results for first nine months of 2009
Podravka Group realized net profit of HRK 42.2 million
Total sales of Podravka Group in the first nine months of 2009 was HRK 2,663.5 million and is reduced by 1% comparing to the same period last year. In the Croatian market sales was HRK 1,399.9 million which is 3% drop and should be viewed in the circumstances of reduced consumer buying power on domestic market.
Sales in the foreign markets was HRK 1,263.6 million which is 1% growth. The highest increase in total sales was realized in the market of South East Europe (13%), with the biggest contribution by the market of Bosnia and Herzegovina.
Sales revenue of SBA Food and Beverages was HRK 2,137.5 million and is reduced by 3%, while Podravka brands with sales of HRK 1,826.7 million recorded a minimum 1% drop.
SBA Pharmaceuticals realized HRK 522.5 million sales and is recording 7% growth, mostly contributed by sales in distribution of pharmaceuticals and drugstore business.
In the observed period operating costs of Podravka Group were HRK 2,522.2 million recording 2% drop, i.e. HRK 61.1 million compared to the same period last year.
Reduced operating costs were also influenced by efficient cost management of sales and distribution and savings and control of administrative costs. Sales and distribution costs record 2% drop, and continued cost control of administrative functions, general and administrative costs recorded 17% drop.
Operating profit was HRK 123.2 million and is increased by 5% compared to the same period last year. This growth was mostly contributed by SBA Food and Beverages which improved its operating business and realized its operating profit of HRK 78 million.
Net profit was HRK 42.2 million, where SBA Food and Beverages realized HRK 25.1 million, and SBA Pharmaceuticals HRK 17.1 million.
Significant business events in the third quarter: Podravka d.d. and Gastro grupa d.o.o. expanded the existing cooperation in the distribution of Podravka's non-alcoholic beverages to the project of Lero instant beverages, while Belupo's medical institution Deltis Pharm d.o.o. entered the business of pharmaceutical wholesale joining Pharma Net, a network of drugstores uniting about a hundred drugstore units.
Podravka d.d. took appropriate actions in order to minimize risks on credits given to SMS d.o.o. in 2007 amounting to HRK 65 milion, which is insured through brand lien. Together with other creditors we are currently considering the possibility of reconstruction and restructuring of the company SMS d.o.o.