Podravka focusing on fewer businesses

Podravka focusing on fewer businesses

Croatian food group Podravka said "all levels of profitability" improved in 2013, a year which the company described as a "significant turning point" for the business.

The company, which sells products from baby food to meat products throughout Europe, booked an underlying net profit of HRK200m (US$35.5m), compared to HRK112.6m in 2012.

The result included expenses from a restructuring programme, which has seen Podravka line up assets for sale.

The group's bakery and beverage busineses are to be offloaded, as well as part of its frozen food divison.

Operating profit was up 20.6% at HRK131m as Podravka trimmed marketing, selling and distribution costs. Sales were flat at HRK3.63bn as a fall in revenue from Croatia, Podravka's largest market, offset improvement elsewhere.

Zvonimir Mršic, president of Podravka's management board, said the company "did a great job" in 2013 and "forwarded Podravka Group into a more secure future".

He added: "[The] past year was a significant turning point in the development of Podravka Group."