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PODRAVKA GROUP PROFITS AMOUNT TO 63 MILLION KUNA

ZAGREB, April 9 (Hina) - The Podravka Group ended 2001 with a net profit of 62 million kuna which is 18 million kuna or 22 per cent less than in 2000. How the profits are going to be divided has still not been decided, a member of the Group's Board said at Monday's presentation of the company's business achievements on the Zagreb Stock Exchange.
ZAGREB, April 9 (Hina) - The Podravka Group ended 2001 with a net profit of 62 million kuna which is 18 million kuna or 22 per cent less than in 2000. How the profits are going to be divided has still not been decided, a member of the Group's Board said at Monday's presentation of the company's business achievements on the Zagreb Stock Exchange.#L# Last year, Podravka realised 2.67 billion kuna in revenues which is four percent more than the previous year. The major portion of this revenue is from sales (95 percent) while the remainder relates to financial and other revenue. Sales on the domestic market amounted to 1.4 billion kuna or 55.7 percent of the total revenue while the remainder of more than 1.12 billion kuna was realised on the foreign market. Vegeta is still the dominant product realising the highest sales rates of 704.9 million kuna or an increase of nine percent in relation to the previous year. This product is followed by Podravka medicines which realised a revenue of 523.1 million kuna which represented a 5 percent increase. A nine percent fall in sales was recorded with meat and meat products and Podravka representatives assign the main cause of this as fear of mad cow disease as well as decreased orders from the Defence Ministry. As far as selling Podravka on foreign markets, an increase of 7 percent was achieved compared to last year with the major package being held by the Poles which is one of the greatest markets for Podravka, taking 10.5 percent of a total of 23.7 percent in sales on foreign markets. Last year alone, this market marked an increase of 13 percent in relation to the year preceding, that is, a revenue of 265.7million kuna. Sales increased on the market in Bosnia (18 percent), Russia (55 percent), Germany (27 percent), the Czech Republic and Yugoslavia (24 percent), USA (13 percent). Intended acquisitions last year, particularly in Yugoslavia, were not achieved due to the fact that state-legal regulations ensuring foreign investments in that country were not satisfactorily completed. Nevertheless, Podravka notes that in 2002 they expect new acquisitions and not only in Yugoslavia but in the neighbouring region as well. Podravka's Board, headed by Darko Marinc, is satisfied with the results achieved as well as the rising price of Podravka shares on the Zagreb Stock Exchange. The 2001 business year, Marinc stressed, was a year of investment and sales on new markets while Podravka shares are amongst the most liquid on the Stock Exchange. It is Podravka's desire that the number of stocks "circulating" on the Exchange be increased and Marinc announced releasing short term commercial records next month already with a total value of 150million kuna. The ownership structure of Podravka is still largely dominated by small stock holders with 33.84 per cent of the ownership followed by the Croatian Privatisation Fund with 12.23 per cent, Kapital fond has 12.13 per cent and the ERRB owns 10.53 per cent. (hina) sp

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