Podravka unveiled its new business strategy extending to 2030, outlining its ambitions across all three core pillars: Food, Agriculture, and Pharmaceuticals. The plan targets overall growth through enhanced market positioning, improved productivity, and innovation, with a strong emphasis on international expansion and boosting global competitiveness.

Let’s first take a step back and recall Podravka’s recent acquisition of Fortenova’s Agri business, one of the largest transactions on the domestic market and a move that undeniably drew the attention of local investors. This strategic milestone shaped the Q1 2025 results, delivering both double digit and triple digit growth rates across key financial lines, heavily influenced by the consolidation of the new Agri segment. Sales revenue rose 19.3% YoY, normalized EBITDA increased by 10%, while net profit after minorities surged 219%. However, on a normalized basis, net profit stood at EUR 19.9m, marking a decline of EUR 3.7m or 15.6% YoY. The normalization reflects the one off gain of EUR 55.04m stemming from the difference between the purchase price and the net asset value of the acquired Agri companies. Margin dynamics were mixed. Gross and normalized EBITDA margins declined due to the lower margin Agri contribution, while EBIT and net profit margins improved on the back of the one-off effect. As the integration progresses, margin structure is expected to gradually normalize.

Now to the core of this flash update: the new business strategy through 2030. It brings a sense of renewal and ambition for Podravka Group, though without any major surprises. As expected, the strategy lays out development plans across all three pillars.

Let’s begin with the newest and currently most dynamic one, Podravka Agri. The newly integrated Agri segment is taking center stage. The group has outlined a EUR 200m investment plan in the projected period, focused on technological advancement, improved energy efficiency, new farm development, and a substantial upgrade of its irrigation network, aiming to expand coverage from the current 8% of land to 21%. In livestock, the largest component of the Agri business, Podravka plans to build four additional pig farms, boost pork production by 20%, and increase beef output by 25%. Farm modernization is seen as non-negotiable, with robotization and biosafety standards playing a key role in the upgrade process. In addition, Podravka Agri plans to significantly expand the use of renewable energy sources and internal organic materials, while developing carbon-neutral agricultural models based on circular bioeconomy principles. A strong emphasis will be placed on deepening cooperation with local producers and scaling up brands like Baranjka and ABC, both domestically and internationally. You can find all the key takeaways on Podravka Agri in our latest flash update.

Now moving to the Food segment. Podravka is aiming to strengthen the international presence of its key brands, especially Vegeta, which is positioned as the main global driver. Target markets include Germany, Austria, Switzerland, the United States, and Australia, while the company will continue to defend its dominant position in Croatia and the broader region. In the coming period, strategic focus will shift toward product categories with high sales and profitability potential. This includes universal food additives, ready meals, soups, cereals like Čokolino, and creamy spreads. At the same time, the development of tomato-based products, frozen food, bakery snacks, and fish salads is planned. The recently completed EUR 250m investment cycle, which focused on technological, logistics, and IT modernization, is now behind the group. In the next five-year period, investment activity will continue at a more modest, normalized pace, aimed at efficient technology use and alignment with consumer needs. Sustainability remains a central theme. Podravka will increase the use of locally sourced agricultural raw materials, with the goal of self-sufficiency wherever climate and agronomic conditions allow. The company will also continue to build a network of cooperants in fruit and vegetable production, strengthening ties with Podravka Agri. The segment will benefit from ongoing digitalization and automation, including the use of artificial intelligence in production processes.

Finally, the Pharmaceutical segment. Belupo plans to become a leading European expert in dermatology by 2030, while strengthening its position as a regional player in the OTC space (medication without a prescription), including cardiology, psychiatry, and neurology. Key growth markets will be Central and Southeast Europe, with additional expansion into Western markets through dermatology and strategic partnerships. The strategy includes EUR 36m of investments to boost production and logistics capacity and improve operational efficiency. A central part of this investment cycle is the creation of a Center of Excellence for Dermatology. Belupo also plans to invest in sustainability through the use of renewable energy sources and recyclable packaging, and by strengthening ties with the local community. Priorities include employee career development, innovative product development, and improved communication with patients and healthcare professionals.

In conclusion, Podravka’s 2030 strategy outlines a clear and ambitious roadmap, reinforcing its long-term positioning across food, agriculture, and pharmaceuticals. The Agri acquisition marks a structural shift in the Group’s profile, introducing a new strategic pillar that complements existing operations. While 2025 will likely be a year of consolidation and internal alignment, the strategic direction is set, and execution will be key to unlocking the full value of this transformation.