Podravka Group business results for the first six months of 2002

The Supervisory Board of Podravka d.d. confirmed at its session yesterday the business results of the Podravka Group for the first six months of the year 2002. In the first six months of this year Podravka’s operations were successful with a net profit of HRK 55 million.

The revenue of the Podravka Group in the said period was HRK 1,322.1 million, which is HRK 9.7 million more than in the same period the previous year. In the total revenue structure, sales income covers 92.8%, financial income 4.8%, and other income 2.4%.

In the period I – VI 2002, the Podravka Group realised revenue from the sales of products and services in the amount of HRK 1,226.5 million, which is slightly more than in the same period in 2001. Of that amount, 55.1% was realised on the domestic market and 44.9% on sales on foreign markets. Revenue from sales on the domestic market was HRK 682.3 million, which is HRK 7.5 million, i.e. 1%, more than in the same period last year. On the foreign markets the revenue was HRK 544.2 million and sales dropped by 1%. This was partly the result of the changes in the USD and PLN exchange rates, which had a significant negative effect on the Polish market, and partly due to the changes in the commercial goods distribution resulting from the termination of the contract with Ferrero – on the Slovenian market.

In the sales revenue structure for I-VI 2002, the Vegeta brand continues to hold the largest individual share making HRK 339.3 million, 2% less than in the same period in 2001 which is primarily a consequence of the situation in Poland (the Polish market marked a 14% drop due to the fall in the PLN exchange rate, but sales in the domestic currency are 2% higher). Drugs and medicines earned HRK 261.3 million, which is the same as in the same period last year. Podravka food products come next with the sum of HRK 127.9 million – 9% more than in the same period in 2001.

The largest individual increase was in the drinks programme – the Studenac and Studena brands – with sales 47% higher than in the first six months of 2001. Also, mill and bakery products marked an increase of 10%; sweets, comprising Lino, Dolcela and Kviki, as well as meats and meat products were up by 4%.

In addition to the above, the following activities in the Podravka Group in the first six months of 2002 should be mentioned: – continued investments in drinks production and new investments in Podravka foods – sale of shares in Panonska pivovara and Elite d.o.o, the sale of the Bowling Alley – acquisition of Poreč Ital-Ice d.o.o., the well-known ice cream manufacturer, whereby Podravka formally enters the frozen foods market – contract signed with Nestle World Trade Corporation on distribution in south-east Europe – programme set up for issuing commercial records to the total value of 150 million HRK – intense work continued on the preparation of new acquisitions – Podravka share – the most liquid share, proclaimed best industrial share of the year – Podravka was awarded a prize for best relations with the media – Euromoney proclaimed Podravka the leading Croatian company in corporate management – ISO 9001:2000 extended to Podravka foods: Lino, Dolcela and Kviki