Over the next five years, the Podravka Group plans to invest about HRK 5bn in the modernization and digitalization of production and logistics, marketing and acquisitions.
The Supervisory Board of Podravka has given its consent to the Podravka Group Strategic plan for the period 2021 – 2025.
The Strategy clearly defines the areas for achieving progress in operations, to further strengthen the capability of the Podravka Group to continually recognise the needs of consumers, and to more quickly adapt to changes in consumer habits, while retaining high quality and health standards of products. In the forthcoming period, Podravka Group intends to get closer to its consumers, to remain a reliable partner in overcoming the challenges of modern life, by offering a wide selection of high quality products.
In the forthcoming period, the Food division of the Group will place special emphasis on the development of products and product and packaging innovations that are directed at increasing the accessibility of Podravka products, and their adjustments to the needs and habits of different consumer groups. The future accelerated growth and development of the Food division will be based on product categories with a higher export potential, such as seasonings, soups and baked goods, and will be focused on the wealthier markets with high potential in Western and Central Europe. For the Croatian market and the Adria region, these markets will continue to be the dominant focus in the forthcoming period, and further growth is expected to retain the strong market position. With this strategic approach, stronger growth of sales revenue share in Western and Central Europe is expected, in terms of total sales revenues.
With regard to acquisitions, the Strategy also clearly defines the criteria for the consideration of and selection of acquisition subjects. It is key to stress that with possible acquisitions in the Food division, Podravka Group aims to strengthen its presence and market position on markets and in categories which are in the focus of further accelerated growth.
The second division of Podravka Group, Pharmaceuticals (Belupo), will place its focus in the forthcoming period on stronger growth on international markets, particularly Central and Eastern Europe, expansion of the portfolio with products with additional ATC (anatomic therapeutic chemical) groups, and spurring growth on the domestic market with the introduction of new products. Growth will be strongly spurred through the launch of new molecules both in the prescription and over-the-counter programmes.
The implementation of the adopted Strategy implies investments in the amount of HRK 1.4bn in marketing to achieve organic growth, HRK 1.7bn in investments to modernize and digitalize production and logistics processes, and about HRK 2bn for acquisitions.