Croatia's Podravka Sees Sales Slow In First Half Of Year
Croatian food processing and pharmaceutical company Podravka Group ended the first half of 2017 with sales revenue of HRK 1.95 billion (€263 million).
The result represents a 1.9% decrease when compared to the same period in 2016, mainly influenced by the divestment of the company's beverages segment and of one-time sales from the meat segment. Without these negative influences, sales revenues increased by about 1%.
Overall, almost 70% of sales revenues were achieved on foreign markets. The Europe region saw a 4% increase in sales, as did Russia and the CIS region (+8.7%), and new markets (+5.5%), while the Adria region remains the only sector with lower sales (-4.7%).
Gross profit was HRK 689.3 million (-4.8%) and net profit fell to HRK 24.8 million (-74.5%).
The food segment accounted for HRK 1.54 billion of the company's sales revenue. The result was negatively influenced by lower orders of frozen vegetables in Russia, pressures in the bakery business in Slovenia, and the change of distributor in Western Europe.
There were also disturbances in the Adria markets due to extraordinary circumstances with Croatia’s Agrokor group, which is one the largest buyers of Podravka products, accounting for 20% of sales of food products in that region region.
© 2017 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