Sunday, 25 July 2021

Croatian Company Podravka Achieves 197 Million Kuna Net Profit

July the 24th, 2021 - The Croatian company Podravka has managed to achieve 197 million kuna in net profit, despite all of the issues caused by the ongoing pandemic.

As Poslovni Dnevnik writes, the net profit of the Croatian company Podravka in the first half of this year reached an impressive 197.6 million kuna, which is 22.3 percent more than in the same period last year, the company announced on Thursday.

At today's meeting, the Supervisory Board of Podravka confirmed the unaudited results of the Podravka Group's operations for the first half of the year, expressing "satisfaction and support for all efforts made to continue the company's continued profitability growth in these still difficult business conditions caused by the coronavirus pandemic,'' in a statement.

In the first half of the year, the Nutrition segment generated a net profit of 136.3 million kuna, which is 13.9 percent more than the year before, while the Pharmaceuticals segment generated a net profit of 61.3 million kuna, or 46.3 percent more, which doesn't come as a shock considering the global public health crisis we're still embedded in.

The Croatian company Podravka's sales revenue in the first half of the year amounted to 2.2 billion kuna and was one percent lower when compared to the comparable period of 2020.

The expected decline in sales revenue compared to 2020 is actually the result of unusually large orders and the creation of additional stocks with customers in March last year caused by the introduction of lockdown in most countries where the Podravka Group operates, the statement said.

It is also stated that when, for example, the total sales revenues from the first half of this year are compared with the comparable period of pre-pandemic 2019, then revenues are actually 4 percent higher, which shows positive trends for the company's business operations.

Within the Nutrition segment, the largest increase in sales revenue in the first half of the year was achieved in the Culinary business programme in the amount of 2.5 percent.

The Croatian company Podravka points out that the business programme(s) Baby Food, Sweets and Snacks also recorded an increase in sales revenue in the amount of 1.7 percent, while the growth in sales revenue was also recorded in the Podravka food segment, in the amount of 2.4 percent.

In the Pharmaceuticals segment, the largest growth was recorded in the Prescription Drugs category, whose sales revenues increased by 4.3 percent when compared to the first half of 2020.

When observing sales revenues by region, within the Food segment from Podravka, point out the growth of sales revenues in the markets of Western Europe and overseas in the amount of 8.2 percent when compared to the comparable period last year.

In these markets, sales growth was achieved in almost all business programmes, of which the largest absolute growth was generated by the business programmes Culinary, Baby food, sweets and snacks and Podravka food.

The Pharmaceuticals segment achieved the largest relative growth in sales revenue of 13.9 percent within the Central Europe region, due to higher sales in the Prescription Drugs category, the statement said.

For more, follow our business section.

Wednesday, 9 June 2021

Podravka Group to Invest HRK 5 Bn Over Next Five Years

ZAGREB, 9 June, 2021 - Over the next five years, the Podravka Group plans to invest about HRK 5 billion in the modernisation and digitalisation of production and logistics, marketing and acquisitions, the group said on Wednesday after the Supervisory Board green-lighted its business strategy until 2025.

"The implementation of the adopted strategy includes investment of about HRK 1.7 billion in the modernisation and digitalisation of production and logistics processes, about HRK 1.4 billion in marketing to achieve organic growth, and about HRK 2 billion for acquisitions," Podravka said in a statement.

The group's Food division will focus on product and packaging development and innovation to increase the availability of products and adjust them to the needs and habits of different consumer groups.

The business strategy also sets the criteria for the consideration and selection of acquisitions. With possible acquisitions in the Food division, Podravka aims to strengthen its presence and position on markets to pursue further accelerated growth.

The Pharmaceuticals division (Belupo) will focus on strengthening growth on international markets, notably in central and eastern Europe, expanding its portfolio with products  in additional anatomical, therapeutic and chemical groups, and boosting growth on the domestic market by introducing new products.

(€1 = HRK 7.5)

For more about business in Croatia, follow TCN's dedicated page.

Wednesday, 9 June 2021

Podravka Factory to Undergo Modernisation for Manufacturing of New Products

June the 9th, 2021 - The Podravka factory (Kalnik) in continental Croatia is set to get an enormous cash injection to modernise its facilities and equipment to make way for the production of yet more products from this much loved Croatian company.

As Poslovni Dnevnik/Sergej Novosel Vuckovic writes, the Kalnik Podravka factory located in the continental city of Varazdin is being modernised, after which new food products from this globally recognised company will be created.

The company received a huge 19.37 million euro grant from European Union (EU) funds from the Ministry of Agriculture, because the "Investment in the modernisation of fruit and vegetable processing plants, new technologies and new products from the Kalnik factory" project owned by Podravka passed the tender of the rural development programme for the implementation of measure 4.2. 1.

The works, which come with a hefty price tag of 40.6 million kuna include the purchase of new equipment and the reconstruction of the Podravka warehouse, as well as its subsequent conversion into a fully equipped, modern production space.

The new equipment on the cards are a line for the receiving, processing and aseptic filling of fruit, the purchase of additional vacuum boilers, all to increase production capacity, and the packaging equipment this Podravka factory uses will be changed and modernised.

This investment will also introduce a set of brand new products: jams, marmalades, new types of ajvar, vegetable and fruit spreads, fruit fillings and more. This particular Podravka factory in Kalnik is the location in which sterilised and pasteurised vegetables, mustard, horseradish and marinades are otherwise produced.

These investments in the company's Varazdin factory aim, among other things, to achieve a wider and more diverse range of products, which will increase the price competitiveness of Podravka's much loved items on both the Croatian market and indeed on foreign markets.

For more, make sure to follow our dedicated business section.

Thursday, 3 June 2021

Croatian Company Podravka Building 12 Million Kuna Solar Power Plant

June the 3rd, 2021 - The Croatian company Podravka is busy with plans to construct a solar power plant on three of its factories, investing a massive 12 million kuna in this environmentally conscious project.

As Poslovni Dnevnik/Suzana Varosanec writes, with the new project for the construction of a solar power plant with a capacity of 2.4 MW, with a total value of 11.7 million kuna, the Croatian company Podravka is joining the increasingly rapid global trend of using renewable energy sources, and all with the intention of intensifying this type of project in the future as well.

This praiseworthy move indicates this much loved company's intention to put the roofs of the remaining factories; Belupo and their logistics capacities, into the function of business savings in the foreseeable future. As a socially responsible company, Podravka clearly plans to further contribute to the wider community by kickstarting a number of projects with environmental benefits.

These premises are already considering the necessary financial estimates for the next two phases in which this truly ambitious goal would be reached - 9.9 MW of RES power.

In the first phase, the RES will produce electricity for its own consumption for all three of the Croatian company Podravka's factories in the Danica Industrial Zone in Koprivnica: the Baby Food and Cream Spreads factory, the Soup and Vegeta Factory, and the Danica factory - which is primarily a sausage factory.

The expected return on this investment is currently three and a half years, while the construction of the "Podravka - Danica" solar power plant, with a power of photovoltaic modules of 3,059.76 kWp, otherwise one of the largest in the Republic of Croatia, will cost 10.3 million kuna. A handsome 5.1 million kuna has been approved for this part of the project, with co-financing from both the European Union (EU) and the Republic of Croatia from the Rural Development Programme.

The Ministry of Agriculture also awarded a non-refundable amount based on the Croatian company Podravka's application for the tender for the implementation of Submeasure 4.2. Support for investments in processing, marketing and/or the development of agricultural products.

The remaining amount of the project, standing at a not so small 1.4 million kuna, refers to the construction of a substation through which the solar power plant will be connected to HEP's electricity network, and that is and will remain fully financed by Podravka alone.

The expected annual production of this power plant is 3.2 MWh, and, as the Croatian company Podravka reports, its commissioning will lead to significant savings in the cost of electricity from conventional sources for the needs of the enterprise's busy factories, but also to a positive impact on the environment by reducing harmful excess CO2 emissions.

For more, make sure to follow our dedicated business section.

Tuesday, 1 June 2021

Podravka Gets HRK 5.16m Grant For Its Future Solar Power Plant

ZAGREB, 1 June, 2021 - Podravka's project of a solar power plant, worth HRK 10.3 million, will be co-funded with a HRK 5.2 million grant by the European Union and the Croatian government under the Rural Development Programme, the Koprivnica-based food factory reported on Tuesday.

"The grant was awarded by the Ministry of Agriculture pursuant to a decision by the Agency for Payments in Agriculture, Fisheries and Rural Development, and pursuant to Podravka's application for implementation of the Sub-measure 4.2 'Support for investments in the processing, marketing and/or development of agricultural products' and implementation of operation type 4.2.2. 'Use of renewable energy sources'," the company said.

The expected period for return on investment with 50% support is 3.5 years.

The investment is valued at HRK 11.7 million, of which HRK 10.3 million is to be used for the construction of the solar power plant, while HRK 1.4 will be spent on the development of the measurement facility and the necessary transformer station.

"Podravka – Danica" 2.4 MW solar power plant is to be built at the Danica Industrial Zone in Koprivnica.

(€1= HRK 7.5)

For more about business in Croatia, follow TCN's dedicated page.

Sunday, 16 May 2021

Is Government Planning to Sell Croatia Airlines? Darko Horvat Responds

May the 16th, 2021 - Minister Darko Horvat has come forward to answer questions about whether or not the Croatian Government has any plans up its sleeve to sell Croatia Airlines and even the well known and much loved brand Podravka.

Croatia Airlines has been knee deep in financial trouble since long before anyone had even heard of COVID-19, which, of course, has done the enfeebled domestic carrier no favours whatsoever. The ongoing pandemic is only working to deepen the airline's already gravely serious issues and it doesn't seem like Ryanair's Zagreb arrival is going to be of any assistance to what many refer to as a company which charges totally unreasonable amounts for the absolute basics in air travel.

Could a sale be on the cards for the ever-problematic Croatia Airlines? It seems that at least currently, that isn't in the works.

As Poslovni Dnevnik writes, Ministers Darko Horvat and Nina Obuljen Korzinek presented their reforms and investments as part of the much talked about Croatian National Recovery and Resilience Plan which are specifically related to the renovation of buildings and culture following the earthquake and the pandemic.

During the presentation of planned reforms in rehard to another burning issue in this country, which regards state property, Minister Darko Horvat answered the question as to whether the government plans to sell Croatia Airlines or Podravka, Media Servis reports.

"Neither this government nor I, as a minister, are considering any privatisation or sale of the Croatian share in Podravka. I'm sure, like my colleague Minister Oleg Butkovic, that Croatia Airlines either needs a quality and good strategic partner or must remain in the Croatian portfolio anyway. To lose an air traffic operator... well, I don't think it would be good or wise,'' Darko Horvat explained.

For more on the Croatian Government and state owned companies, follow our dedicated politics page.

Friday, 30 April 2021

Podravka Group Generates Q1 Net Profit of HRK 105.2 Million

ZAGREB, 30 April, 2021 - The Podravka Group generated a net profit of HRK 105.2 million in the first quarter of 2021, an increase of 15.6% over the same period in 2020, the Koprivnica-based food company said in a financial statement on Friday.

Sales revenue amounted to HRK 1.08 billion or 12.1% less compared to the same period last year.

Podravka said that the decrease in revenue had been expected and was in line with business plans.

"The expected fall in sales revenue compared to 2020 was due to the unusual withdrawal of goods from buyers and extra stocks created in March last year as a consequence of the lockdown in most of the countries where Podravka is present."

The company's supervisory board adopted the revised business results for 2020 which show that the group had generated a net profit of HRK 248.9 million, or 12.3% more than in 2019.

 (€1 = HRK 7.5)

For more about business in Croatia, follow TCN's dedicated page.

 

Tuesday, 13 April 2021

Zagreb Stock Exchange Indices Rebound

ZAGREB, 13 April, 2021 - The main Zagreb Stock Exchange (ZSE) indices rebounded on Tuesday, with the Crobex rising by 0.26% to 1,887 points and the Crobex10 by 0.07% to 1,182 points.

Turnover at the close of the trading session was HRK 3.45 million, 500,000 lower than on Monday.

None of the stocks passed the turnover mark of one million kuna. The highest turnover, of slightly over HRK 500,000, was generated by the stock of the Podravka food company. The price of its share fell by 0.72% to HRK 550.

A total of 36 stocks traded today, with 12 of them registering share price increases, 12 recording price decreases and 12 remaining stable in price.

(€1 = HRK 7.570542)

For more about business in Croatia, follow TCN's dedicated page.

 

Thursday, 4 March 2021

Zagreb Stock Exchange Main Indices Stable

ZAGREB, 4 March, 2021 - The Zagreb Stock Exchange Crobex index increased 0.07% to 1,845 points on Thursday, while the Crobex10 decreased 0.07% to 1,145 points, with a regular turnover of just under HRK 4 million.

No stock crossed the million kuna mark. The most traded stock was the Podravka food company, turning over HRK 786,000. It closed at HRK 518 per share, up 0.39%.

Forty-one stocks traded today, 16 ending with share price increases, 17 with share price decreases and eight ending stable.

(€1 = HRK 7.573946)

Saturday, 6 February 2021

Martina Dalic Takes Podravka "Throne": My Reference is Agrokor

February the 6th, 2021 - Martina Dalic, perhaps best known for her role in the weird and rarely wonderful Agrokor saga which dominated the Croatian public and nearly sent the economy down the drain just a few years ago, has come to the helm of the Croatian company Podravka following Marin Pucar's premature death.

As Poslovni Dnevnik writes, the corporate, but also very much political news of the week is certainly what many as referring to as the "rehabilitation" of former government minister Martina Dalic by appointing her to the position of President of the Management Board of Podravka.

Martina Dalic was the personal choice of Prime Minister Andrej Plenkovic, and although the media speculated that some members of the Supervisory Board would oppose it, her appointment was unanimously confirmed by the Supervisory Board on Wednesday. Her term will last until February 2022, because until then the company should have been run by the recently deceased Marin Pucar, who passed away after a battle with an illness.

Although Podravka is two-thirds owned by private capital, pension funds hold almost 49 percent of the shares, and the state has only 24 percent, the company is under "strong pressure" from politics. This, without exception, applies to all policy options, and the “right” to management and staffing is laid from the local to the highest national level. After Pucar's death at the beginning of January, the head of the Croatian Chamber of Commerce, Luka Burilovic, the director of Adris Cromaris, Goran Markulin, and a member of the Management Board of Podravka for Finance, Davor Doko, were all in the race for Podravka's proverbial ''throne''.

"Personally, I'm glad that the proposal for my appointment was made by the largest individual shareholder of the Croatian Government, it means a lot to me," said Martina Dalic after the Supervisory Board session. She added that one of the first steps she intends to take will be to get to know the associates and representatives of the workers, but that she is not yet thinking about the reconstruction of the company's management.

Despite the ongoing coronavirus pandemic and the record decline experienced by the entire domestic economy, by the end of September, Podravka had achieved revenue growth of 3.3 billion kuna (+ 2.8 percen), while sales revenues in the food and pharmaceutical segment also grew. The annual results for 2020 will be announced on February the 26th.

To briefly recall, former Deputy Prime Minister Martina Dalic resigned back in May 2018 after the Borg affair revealed that she coordinated a group of individuals who wrote Lex Agrokor for the Croatian Government without contracts and official decisions, who were then charged for their consulting services to the now disgraced concern.

Martina Dalic still claims that she did nothing wrong in the Agrokor affair - and she even referred to the work she did regarding Agrokor as a ''great experience and reference''.

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