Croatian food processing and pharmaceutical group Podravka has reported its highest first-half operating net profit, of HRK 140 million (€18.9 million).
The result represents 16.1% growth when compared with the same period last year. It was primarily driven by sales growth in the brand's profitable product lines.
The group's liabilities were reduced by HRK 144.1 million (€19.5 million) in the period.
This achievement follows the company's strong performance in 2018, one of the most successful years in its history, and a record-breaking first quarter in 2019.
Sales revenue increased by 5.1% to HRK 2.14 billion (€289.9 million), driven by growth in both food and pharmaceuticals businesses.
Divisional Performance
The company's food segment generated HRK 1.68 billion (€227.5 million) in sales, up 5.1% year-on-year, with own brands products seeing a 4.8% growth.
Its fish segment recorded the highest sales growth of 17% followed by baby food, sweets and snacks (+11.2%), and the culinary division (+5%).
The highest relative sales growth, in geographical terms, was seen in Western Europe and the overseas markets (+13.2%), followed by Eastern Europe (+9%) and the Adria region (+4.8%).
Outlook
The management’s focus for the rest of the year will be the implementation of its business strategy, based on three key points – focus on traditional markets where the Podravka Group is already an established manufacturer, investment in development and innovation of its private-label brands, and efficient cost management.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine.
