Podravka d.d. — Earnings Release 2025

Apr 29, 2025

Koprivnica, April 29, 2025.

Podravka Group marks the first quarter of 2025 with the acquisition of agricultural companies and completion of the largest investment cycle in its history

In the first three months of 2025, the Podravka Group increased its sales revenue by 19.2% compared to the same period last year. Total revenue amounted to EUR 228.7 million, an increase of EUR 36.9 million. This growth is primarily driven by the newly acquired agricultural segment, Podravka Agri, which has been integrated into the Group. The Podravka Group completed the acquisition of Belje, Vupik, and PIK Vinkovci on January 31st this year, making Agriculture the Group's third business pillar, alongside Food and Pharmaceuticals. The newly acquired companies are managed by Podravka Agri, and the acquisition has further strengthened Podravka's position among the leading domestic companies.

In the first quarter, revenue from the Food segment was slightly lower by EUR 0.9 million, while Pharmaceutical revenue grew by EUR 1.2 million compared to the first three months of 2024. However, both segments recorded an increase in sales revenue from proprietary brands - 0.2% in Food and 4.5% in Pharmaceuticals.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) in Q1 2025 amounted to EUR 96.9 million, which is EUR 59 million or 156% more than in the same period last year. This growth is largely due to the difference between the purchase price and the net acquired assets of the agricultural companies. Normalized EBITDA was EUR 42 million, an increase of EUR 3.9 million or 10.3% year-over-year.

Normalized net profit for the Podravka Group in the first three months of this year amounted to EUR 19.9 million, a decrease of EUR 3.7 million or 15.6% compared to the same period in 2024. The movement of the Group's net profit is primarily influenced by the financing costs related to the acquisition of agricultural companies.

"The first quarter of this year was marked by the successful completion of a longplanned acquisition of agricultural companies, opening a new chapter in Podravka's history. I am particularly pleased that concrete steps have already been taken within Podravka Agri - launching an investment cycle focused on modernizing technology, improving working conditions, and increasing employee benefits. Additionally, a new business strategy has been adopted, laying the foundation for long-term improvement and enhanced competitiveness of this newly established agricultural segment within the Podravka Group. Although the business environment in the first quarter was challenging and marked by uncertainty across almost all markets, Podravka is wellprepared for such challenges. Our strength lies in the changes and improvements implemented over the past years, both in domestic and international markets, allowing us to successfully adapt to new circumstances. We are confident that continued

investment and enhancement of our go-to-market model are key prerequisites for future growth and development. The new acquisition is an opportunity to build a sustainable and successful future together - for Podravka Group and all of its members," said Martina Dalić, President of the Management Board of Podravka.

In 2025, employees of Podravka and Belupo entered the year with a new round of salary and benefits increases. As of January 1st, the lowest wages have been increased by 13.4%, marking the sixth increase in salaries and employee benefits over the past three years.

Additionally, just over two months after the acquisition, salary and benefits increases were agreed upon for employees of the agricultural companies now operating under Podravka Agri. For workers covered by collective agreements at Belje, Vupik, and PIK Vinkovci, wages increased by an average of 10% as of April 1st.

With the recent opening of its new Transport center in Koprivnica, Podravka has officially concluded the largest investment cycle in the Group's history. This investment has enhanced traffic safety and improved working conditions, and in synergy with the new logistics and distribution center, it forms a powerful operational hub that will further increase logistics efficiency. The total investment cycle, which spanned from 2021 to 2025 and was completed without borrowing, amounted to nearly EUR 250 million and resulted in significant modernization and transformation of business operations. In line with the Group's ambitions for rapid development of its agricultural companies, a dedicated investment plan for Podravka Agri has been adopted, valued at EUR 33 million.

One of the key investments in digital transformation was the transition to the new SAP S/4HANA platform. The project, worth over EUR 4 million, encompassed all business processes in 23 Podravka Group companies that previously used the older SAP ERP system. This major step has laid a strong foundation for further digitalization and optimization of business operations, enabling greater connectivity, transparency, and operational excellence.