The business results of the Podravka Group for January - March 2004

In the first quarter of 2004, the Podravka Group realised total revenue in the amount of HRK 757.2 million, which represents a 2% increase compared to the same period of 2003. The Podravka Group’s net profit generated in this period amounted to HRK 27.4 million, while the operating profit for the same period amounted to HRK 36.3 million.

In the structure of total revenues, sales revenues amounted to HRK 721.7 million, representing an increase of 3% compared to the same period of the previous year. Also in comparison with the same period of last year, the increase in the costs of goods sold was lower compared to the increase in sales. The costs of sales and distribution were reduced by 1%, and general and administrative costs went down by 10%.

From the total sales revenue, 51.1% was generated in the domestic market and 48.9% in foreign markets. Sales increased by 1% in the Croatian market, 5% in foreign markets, 6% in the market of South-eastern Europe, 1% in the Eastern European market, and 93% in the Polish and Baltic markets.

In the first three months of 2004, the Vegeta Brand generated sales revenue in the amount of HRK 138.8 million, which is a 12% increase in comparison with the same period of 2003. The largest individual increase in sales was realised by mill and bakery products, representing a 55% increase over the same period of the previous year. Other groups of products marked an increase compared to the same period of the previous year as follows: fruits and vegetables 13%; beverages 9%; Lino, Dolcela and Kviki 2%; meat and meat products 1%; and traded goods 9%. Pharmaceuticals and cosmetics generated sales revenue in the amount of HRK 132.9 million.

Furthermore, the activities of the Podravka Group in the first quarter of 2004 included the continuation of the investment cycle directed towards production facilities of Podravka’s Danica Meats, and the setting up of two new lines for the packaging of Vegeta at the Vegeta factory in Koprivnica. Podravka’s Management Board adopted a plan for the reorganisation of the Group, aimed at increasing Podravka’s operating efficiency. Podravka also issued corporate bonds in the amount of HRK 27 million, with a 3-year due date. Podravka also continued its Programme of dealing with surplus workers, relating to those employees who have been defined as surplus to requirements.