Podravka
d.d. Management Board reached a resolution on reducing a number of products
from the production program.
About 660 products that have been present on various markets and did not
yield an expected positive effect will be discontinued. A positive
effect on gross margin is thus expected, amounting to HRK 1.2 million.

Podravka
Management Board also reached a resolution on restructuring the bakery business,
with the purpose of reducing production expenses and improving profitability of
the bakery program.

All of these
actions are a part of the continued business processes rationalization and
efficiency increase, which is currently one of the main priorities of
Podravka’s Management Board headed by Zvonimir Mršić.

Podravka is also is working on focusing its business
on key categories, products and markets where it wants to continue its
profitable growth.