Podravka (PODR) Q1 2025 earnings summary

Executive summary

• Operating revenues rose 21.8% year-over-year to EUR 233.5m, driven by the acquisition of the Agri segment and growth in Pharmaceuticals.

• Podravka completed the €333m acquisition of Fortenova Group's agricultural segment, establishing agriculture as its third business pillar alongside Food and Pharmaceuticals.

• The company launched a major investment cycle, including a new €3m Transport Centre and a €4m SAP S/4HANA digital transformation project.

• The "Zlata Bartl" Foundation was reactivated to support innovation, education, and sustainability, with a focus on women entrepreneurs and STEM students.

• Podravka was again awarded the Employer Partner certificate for excellence in HR management.

Financial highlights

• Group sales revenue up 19.2% year-over-year to EUR 228.7m; other operating revenues (mainly agricultural subsidies) at EUR 4.8m.

• Gross profit increased 7.6% to EUR 82.4m; normalized EBITDA up 10.3% to EUR 42.0m.

• Net profit after MI declined 53.2% to €9.9m in Q1 2025, mainly due to lower dividend income and higher financial costs.

• Reported net profit after MI was EUR 74.9m, inflated by a one-off gain from the Agri acquisition.

• Net cash from operating activities rose 41% to €16.7m; net cash from investing activities at EUR -310.5m due to Agri acquisition.

Outlook and guidance

• Capital expenditures for 2025 are expected to reach nearly EUR 72.2m.

• Dividend proposal of EUR 3.20 per share, with a proposed yield of 2.2%.

• Podravka plans further investments in the acquired agricultural companies, focusing on technology modernization, irrigation, and working conditions.

• The company aims to expand its supplier network and strengthen domestic production and supply chain stability.