Croatian food, beverages and pharmaceuticals producer Podravka will invest nearly 30 million kuna ($4.8 million/4 million euro) in the technological modernisation of its production, it said on Wednesday.
“As part of the recently announced investment cycle by the Podravka Group, the Podravka Management Board has passed the decision to invest nearly HRK 30 million in the technological modernisation of Podravka’s production. This investment includes the procurement of new lines for the production and packaging of shaped products in the Koktel snacks factory based in Koprivnica,” said the company in the press release.
With this investment, Podravka will completely modernise this technological work process. In addition to raising the efficacy of the production process itself, this will also create the assumptions for the production of existing and new products in the children’s cereal line.
With its brand Lino, Podravka holds the leader position on the Croatian children’s cereal market, while it is one of the most prominent brands on the Slovenian and Serbian markets. With the installation of this new production line, the production capacities will be increased, thereby allowing for further growth and development of this range of products.
Modernisation of Podravka’s production units will continue in the forthcoming period, and it is the company’s intention to raise its development to an optimal level, in order to adequately respond to the increasing challenges of the many markets it operates on, while also ensuring high-quality working conditions for employees.
Recently, the Supervisory Board confirmed the business results for the first quarter of 2021 and expressed its satisfaction with the achieved growth of profitability in a very challenging year. In this period, the Podravka Group achieved net profits in the amount of HRK 105.2 million, which is an increase of 15.6% over the same period last year. “This positive result is confirmation of the company’s capability to quickly adapt its operation to the unpredictable and extraordinary situation and reflects the strength and durability of the business model and fundamental activities of the Podravka Group. With regard to sales revenues, they totalled HRK 1079.7 million in the first quarter of the year, and as expected were lower in the comparison period, though in full alignment with the adopted business plan for this year. The expected drop in sales revenues in comparison to 2020 is the consequence of the unusually high retraction of goods and creation of additional stocks by customers in March 2020, due to the implementation of the lockdown in most countries where the Podravka Group is present,” said the company.