Podravka makes HRK 52.6 million profit in the first half year

In the first 6 months of this year, the Podravka Group realised total revenues to the amount of HRK 1,591.3 million, representing a 2% increase over the same period in 2003. Sales revenues made up 99% of total revenues, with 1% coming from other revenues. In the first half of this year, the Podravka Group realised net profit to the amount of HRK 52.6 million. Operating profit amounted to HRK 70.4 million and was significantly higher than last year’s amount (index 256).

Revenues from sales amounted to HRK 1,573.3 million, which is a 3% increase on the same period of the previous year. Revenue of HRK 827.5 was realised in the Croatian market which is at the same level as last year. A growth in revenues of 6% was recorded in foreign markets, amounting to HRK 745.8 million. This represents a growth in sales revenues on foreign markets, which now have a 47.4% share in total sales. In the market of Southeast Europe, sales grew by 6%, while a highly significant growth of 84% was recorded in the market of Poland and the Baltic States (high organic growth in the Polish market).

The sales of products from the food and beverages segment in the first half of this year grew by 4.4%, commercial goods by 3.4%, while pharmaceuticals recorded a 1% fall. From the aspect of product groups, the most significant growth in sales was achieved by Vegeta (9%), both in domestic and foreign markets. Mill and bakery products followed with 55%, then fruit and vegetables (8%), the products of acquired companies – Lagris and Ital-Ice (5%), and commercial goods (3%).

Total expenditures in the first 6 months of 2004 amounted to HRK 1,520.9 million and are 1% lower than those realised in the same period last year. The costs of goods sold rose more slowly (2%) than the growth of sales (3%) compared to the same period of the previous year. The costs of sales and distribution were 5% lower, while general and administrative costs were 9% lower compared to the observed period of last year.

Additional highlights in Podravka’s operations include the opening of the plant for creams and ointments in Belupo, the adoption of a new organisational structure, the continuation of positive trends in the Polish market, and the gold medal for quality awarded to Vegeta at the Novi Sad Fair. Podravka also received the Golden Share for the most liquid share in 2003, and recognition for the general contribution to the protection of the environment from the Ministry of Environmental Protection and Physical Planning.