Podravka Group confirmed its market strength and adaptability in a very challenging environment, achieving total sales revenues of an impressive 484 million euros in the first six months of 2025.

This figure also includes the agricultural segment, Podravka Agri, which formally became part of the Group on January 31 of this year, marking the beginning of a new phase of development and business diversification.

The Group’s key segment, Food, recorded revenues of 295.5 million euros, representing an increase of 1.7 percent compared to the same period last year. This growth was achieved despite difficult market conditions, where we are facing stronger recessionary pressures, a slowdown in food retail, especially in Central Europe, and changing consumer habits driven by global uncertainties. It is particularly significant that own brands in this segment increased sales by 1.6 percent, confirming their relevance and quality in the market.

The pharmaceutical segment, managed by the company Belupo, generated revenues of 91.9 million euros with growth of 2.3 percent. The growth in sales of own brands in Pharmaceuticals is even stronger, reaching 3.7 percent, which testifies to the strengthening of Podravka’s position in this segment. Additionally, the development of the distribution center in the United States continued, and it has taken on an important role in placing products from Southeast Europe. Thanks to this, distribution revenues in the USA increased by as much as 27.8 percent, which is a sign of an upward trend and successful international expansion.

The agricultural segment Podravka Agri, despite challenges such as the drop in livestock prices caused by the outbreak of foot-and-mouth disease in Germany, generated revenues of 99.1 million euros. It is important to emphasize that the integration of this segment into the complete structure of the Group was successful and is already delivering the first positive effects on business profitability.

Operating profit before depreciation, known as EBITDA, increased significantly, reaching 142.5 million euros, which represents growth of 116.5 percent compared to the first half of 2024. Normalized EBITDA, which more accurately reflects regular operations and excludes one-off impacts, amounts to 88 million euros, an increase of 33.1 percent. The Food and Pharmaceuticals segment maintained stable normalized EBITDA at the level of 65.8 million euros, while agriculture contributed 22.3 million euros, confirming its importance in the overall revenue structure. The Group’s normalized net profit also increased by 6.5 percent to 41.3 million euros, despite the costs of financing the acquisition of agricultural companies.

Management Board President Martina Dalić particularly emphasizes: “In the first half of the year, despite the demanding market environment, all key business indicators achieved growth. This confirmed the strength of Podravka Group and its ability to adapt to a market environment that is marked by growing uncertainties and risks in almost all sales markets. Still, the most important event is the successful start of the inclusion and integration of the Agriculture segment. I am especially satisfied with the progress of integration, the pace of improving the material position of workers, as well as the speed of improving business processes and ways of working, especially in crop farming, which are already beginning to show their first results in improving the profitability of the Agriculture segment.”

The Agriculture segment, in which the European Bank for Reconstruction and Development (EBRD) is also a co-owner, shows determination in implementing changes aimed at efficiency and profitability. A new wave of investments in equipment worth 33 million euros has secured modern machinery for all companies within Podravka Agri. In line with the Group’s values, the material position of all employees in that segment has also been improved. From April 1, the lowest wages were increased by around 16 percent, while the average increase for workers covered by collective agreements exceeded 10 percent. In addition, the restructuring of operations enables unified management of land resources, which has already proven extremely effective during this year’s wheat harvest.

Podravka plans strong investments in the agriculture segment by 2030, worth almost 200 million euros, aimed at technological development, energy efficiency, the development of irrigation systems, and the construction of new farms. At the same time, the Food and Pharmaceuticals segments will also experience growth through the strategy to 2030 – through increasing market strength, building new production capacities, digitalization and the application of artificial intelligence, as well as strengthening the domestic raw material base and cooperation with partners.

In Food, Podravka plans an intensive expansion of the presence of its brands in the markets of Western and Central Europe, the United States, and Australia, while the pharmaceutical segment Belupo will strategically invest 36 million euros in production and logistics capacities and improving business efficiency, with the ambition of reaching the position of a leading European dermatology expert.

At the transition toward the second half of the year, Podravka is actively managing the portfolio of companies in its group. One of the strategic steps was also the sale of the confectionery business of the company Žito d.o.o. Ljubljana, which includes well-known brands such as Šumi, Gorenjka, Herba, and others. The business was taken over by the company UPI Star d.o.o. Sarajevo, which will continue the development and strengthening of the confectionery segment, while preserving production locations in Slovenia.

Overall, Podravka confirms its role as a stable and innovative leader, which through its orientation toward quality, modernization, and internationalization is raising standards and planning long-term sustainable growth in all business segments. This year marks an important turning point in the company’s history, with very promising prospects for the future.