Podravka d.d. — Interim / Quarterly Report 2016

Oct 25, 2016

Appendix 1 Reporting period:	1.1.2016. 30.09.2016. to
	Quarterly financial report of entrepreneur - TFI-POD
Registration number (MB) 03454088
Identification number of subject (MBS) 010006549
18928523252 Personal identification number (OIB)
	Issueer company: PODRAVKA prehrambena industrija d.d., KOPRIVNICA
Postal code and place 48000	KOPRIVNICA
Street and number ANTE STARCEVICA 32
E-mail address: podravka@podravka.hr
Internet adress: www.podravka.com
Code and name of comune/town 201	KOPRIVNICA
Code and county name 6	KOPRIVNIČKO-KRIŽEVAČKA Number of employees 6754
Consolidated statement YES	(at quarter end) NKD/NWC code: 1039
Subsidiaries subject to consolidation (according to IFRS):	Headquarters Registration number:
	BELUPO d.d. Koprivnica 3805140
	ŽITO d.d. Ljubljana, Slovenija 5391814000
PODRAVKA SARAJEVO d.o.o.	Sarajevo, BiH 20188537
PODRAVKA POLSKA SP z.o.o.	Kostrzyn, Polska 5981449907
PODRAVKA LAGRIS a.s.	Dolni Lhota u Luhačovic, Češka 3042510487
PODRAVKA LJUBLJANA d.o.o.	Ljubljana, Slovenija 5539064000

Book keeping service:
Contact person: Laljek Senka
(authorised person for representation)
Phone number: 048 653 203	Fascimile: 048 220 562
E-mail address: Senka.Laljek@podravka.hr
Surname and name Mršić Zvonimir
(authorised person for representation)

Disclosure documents:

1. Financial statements (balance sheet, profit and loss account, cash flow statement, statement

shareholders' equity and notes to the financial statements)

1. Interim management Report

2. Statement of responsible persons for preparation of financial statements

(signed by authorised person for representation)

BALANCE SHEET as at 30.09.2016.

Obligator: Podravka prehrambena industrija d.d., Koprivnica
Item		Last year (net)	Current year (nat)
1	$\overline{2}$	$\overline{\mathbf{3}}$	A.
ASSETS A) RECEIVABLES FOR SUBSCRIBED BUT NOT PAID-IN CAPITAL	001	0	$\Omega$
B) LONG-TERM ASSETS (003+010+020+029+033)	002	2.498.442.677	2.663.246.926
I. INTANGIBLE ASSETS (004 to 009)	003	310.801.735	300.222.296
1. Assets development	004	10.175.336	8 999.307
2. Concessions, patents, licences fees, trade and service marks, software and other rights	005	249.124.385	243.803.889
3. Goodwill	006	26.290.000	26.290.000
4. Prepayments for purchase of intangible assets	007	1.504.841	648.700
5. Intangible assets in preparation	008	23.707.173	20.480,400
6. Other intangible assets	009	$\Omega$
II. TANGIBLE ASSETS (011 to 019)	010	1.937.980.492	2.140.344.978
1. Land	011	355.118.207	321.177.004
2. Buildings	012	835.540.750	792.764.722
3. Plant and equipment	013	510.533.282	509.583.698
4. Tools, facility inventory and transport assets	014	28.394.869	24.901.025
5. Biological assets	015	0
6. Prepayments for tangible assets	016	65.255,352	103.727.151
7. Tangible assets in progress	017	140.890.710	375.833.083
8. Other tangible assets	018	2.247.322	2.238.762
9. Investments in buildings	019	0	10.119.534
III. LONG-TERM FINANCIAL ASSETS (021 to 028)	020	18.712.922	16.405.546
1. Investments (shares) with related parties	021	$\Omega$	0
2. Loans given to related parties	022
3. Participating interest (shares)	023	1.221.522	340.500
4. Loans to entrepreneurs in whom the entity holds participating interests	024
5. Investments in securities	025	12.228.960	11.821.000
6. Loans, deposits and similar assets	026	5.262.440	4.244.046
7. Other long - term financial assets	027	0	0
8. Investments accounted by equity method IV, RECEIVABLES (030 to 032)	028	0 $\Omega$	0
1. Receivables from related parties	029 030	0	0 0
2. Receivables from based on trade loans	031	0	0
3. Other receivables	032	0
V. DEFERRED TAX ASSETS	033	230.947.528	206.274.107
C) SHORT TERM ASSETS (035+043+050+058)	034	2.430.743.004	2.401.093.556
I. INVENTORIES (036 to 042)	035	1.007.051.721	1.116.799.236
1. Raw-material and supplies	036	298.676.722	301.325.984
2. Work in progress	037	54.411.156	60.698.981
3. Finished goods	038	242.971.478	304.004.403
4. Merchandise	039	192.669.575	189.245.710
5. Prepayments for inventories	040
6. Long - term assets held for sales	041	218.322.789	261.524.158
7. Biological assets	042
II. RECEIVABLES (044 to 049)	043	1.129.521.186	1.059.498.367
1. Receivables from related parties	044
2. Accounts receivable	045	1.029.793.740	995.316.542
3. Receivables from participating parties	046
4. Receivables from employees and members of related parties	047	1.764.408	1.511.840
5. Receivables from government and other institutions	048	55.847.595	27.297.992
6. Other receivables	049	42,115.442	35.371.992
III. SHORT TERM FINANCIAL ASSETS (051 to 057)	050	2.292.680	5.395.532
1. Shares (stocks) in related parties	051	0
2. Loans given to related parties	052
3. Participating interests (shares)	053
4. Loans to entrepreneurs in whom the entity holds participating interests	054
5. Investments in securities	055	645.000	1.007.665
6. Loans, deposits, etc.	056	1.432.762	4.387.867
7. Other financial assets	057	214.918
IV. CASH AT BANK AND IN CASHIER D) PREPAID EXPENSES AND ACCRUED REVENUE	058	291.877.418	219.400.422
E) TOTAL ASSETS (001+002+034+059)	059 060	16.564.839 4.945.750.520	18.063.282 5.082.403.764
F) OFF-BALANCE RECORDS	061	1.584.979.434	1.945.009.718

Obligator: Podravka prehrambena industrija d.d., Koprivnica
Item STORY	AOP code	Last year (net)	Current year (n et )
۹		3	4
LIABILITIES AND CAPITAL
A) CAPITAL AND RESERVES (063+064+065+071+072+075+078)	062	2.817.755.686	2.876.499.797
I. SUBSCRIBED CAPITAL	063	1,566,400.660	1.566.400.660
IL CAPITAL RESERVES	064	186.262.938	184.621.533
III.RESERVES FROM PROFIT (066+067-068+069+070)	065	483.130.297	534,177,826
1. Reserves prescribed by low	066	64.736.624	75.560.467
2. Reserves for treasury shares	067	165.356.715	165,356.715
3. Treasury stocks and shares (deduction)	068	66.709.496	74.958,910
4. Statutory reserves	069	48.279.875	56.828.183
5. Other reserves	070	271.466.579	311,391.371
IV. REVALUATION RESERVES	071	$\theta$
V. RETAINED EARNINGS OR ACCUMULATED LOSS (073-074)	072	116.939.896	400.912.725
1. Retained earnings	073	116.939.896	400.912.725
2. Accumulated loss	074	$\Omega$
VI. PROFIT/LOSS FOR THE CURRENT YEAR (076-077)	075	397.310.409	142.191.097
1. Profit for the current year	076	397.310.409	142, 191.097
2. Loss for the current year	077	0
IX. MINORITY INTERESTS	078	67,711.486	48.195.956
B) PROVISIONS (080 to 082)	079	64.126.023	63.551.650
1. Provisions for pensions, severance pay, and similar liabilities	080	40.465.301	39.672.959
2. Reserves for tax liabilities	081	0	0
3. Other reserves	082	23.660.722	23.878.691
C) LONG - TERM LIABILITIES (084 to 092)	083	828.320.445	818.176.278
1. Liabilities to related parties	084	0
2. Liabilities for loans, deposits etc.	085	0	$\Omega$
3. Liabilities to banks and other financial institutions	086	752.240.469	744.187.377
4. Liabilities for received prepayments	087
5. Accounts payable	088	0	o
6. Liabilities arising from debt securities	089	$\bf{0}$	$\circ$
7. Liabilities to entrepreneurs in whom the entity holds participating interests	090
8. Other long-term liabilities	091	19.610.830	20.320.516
9. Deferred tax liability	092	56.469.146	53.668.385
D) SHORT - TERM LIABILITIES (094 to 105)	093	1.138.653.304	1.195.801.171
1. Liabilities to related parties	094	$\Omega$
2. Liabilities for loans, deposits etc.		498.365
3. Liabilities to banks and other financial institutions	095 096	466.261.658	422.833
4. Liabilities for received prepayments	097	1.791.269	635.026.593
5. Accounts payable		565.431.047	1.209.479
	098		450.783.197
6. Liabilities arising from debt securities	099	$\overline{0}$	0
7. Liabilities to entrepreneurs in whom the entity holds participating interests	100	$\Omega$
8. Liabilities to employees	101	82.743.485	66.849.469
9. Liabilities for taxes, contributions and similar fees	102	15.198.958	28.358.173
10. Liabilities to share - holders	103	1.395.499	1.367.183
11. Liabilities for long-term assets held for sale	104
12. Other short - term liabilities	105	5.333.023	11.784.244
E) DEFFERED SETTLEMENTS OF CHARGES AND INCOME DEFERRED TO FUTURE PERIOD	106	96.895.061	128.374.868
F) TOTAL - CAPITAL AND LIABILITIES (062+079+083+093+106)	107	4.945.750.520	5.082.403.764
G) OFF-BALANCE RECORDS	108	1.584.979.434	1.945.009.718
APPENDIX to balance sheet(to be filled in by entrepreneur that prepares consolidated annual financial report)
CAPITAL AND RESERVES
1. Attributed to equity holders of parent company	109	2.750.044.200	2.828.303.841
2. Attributed to minority interest	110	67.711.486	48.195.956

PROFIT AND LOSS ACCOUNT for the period 1.1.2016. to 30.09.2016.

Obligator: Podravka prehrambena industrija d.d., Koprivnica
Item	AOP code	Last Year		Current year
		Cumulative	Quarterly	Cumulativo	Quarterly
	$\overline{\mathbf{2}}$	$\mathbf{3}$	a 896.058.243	5	启
OPERATING REVENUE (112+113) 1. Sales revenue	111 112	2.533.092.331 2 462 169 923	885.905.215	3.085.466.092 3 030 844 401	1.055.850.655 1.042.324.217
2. Other operating revenues	113	70 922 408	10.153.028	54.621.691	13.526.438
II. OPERATING EXPENSES (115+116+120+124+125+126+129+130)	114	2 351 546 902	837.893.710	2 893 894 155	988 413 408
1. Changes in value of work in progress and finished products	115	$-34.834.527$	$-21.911.705$	$-63,540,098$	$-39.190.188$
2. Material costs (117 to 119)	116	1 596 639 360	589 980 670	1.964.747.895	689.556.499
a) Raw material and material costs	117	818 771 106	301.262.290	1.096.630.645	382.756.666
b) Costs of goods sold	118	446 432 864	168 821 906	438 659 108	157.928,558
c) Other external costs	119	331 435 390	119-896.474	429 458.141	148.871.276
3. Staff costs (121 to 123)	120	485 117 838	165,381,022	614.906.503	213.927,607
a) Net salaries and wages	121	292 331 624	100,485.607	359 127 733	126,923,437
b) Cost for taxes and contributions from salaries	122	123-734-499	41.618.678	169.388.110	57.437.941
c) Contributions on gross salaries	123	69.051.715	23,276,737	86.390.660	29,566,229
4. Depreciation	124	101 224 325	33.892.175	136.132.953	43.942.443
5. Other costs	125	153.605.720	51.881.965	186.477.479	61,724.319
6. Impairment (127+128)	126	8.232.602	5.662.118	8.437.638	3.234.570
a) Impairment of long-term assets (financial assets excluded)	127	$-502.393$	$-48,503$	0
b) Impairment of short - term assets (financial assets excluded)	128	8.734.995	5.710.621	8-437.638	3.234.570
7. Provisions	129		0	448,063	2.570
8. Other operating costs	130	41,561,584	13.007.465	46.283.724	15,215.588
III. FINANCIAL INCOME (132 to 136)	131	44.135.131	$-5.958.658$	47-981-315	5.384.088
1. Interest income, foreign exchange gains, dividends and similar income from related parties	132	7.518.926	1.643.738	9.149.580	1.840.151
2. Interest income, foreign exchange gains, dividends and similar income from non - related parties and other entities	133	35 726 456	$-7,110,553$	38.776.648	3.518.669
3. Share in income from affiliated entrepreneurs and participating interests	134
4. Unrealized gains (income) from financial assets	135	889 749	$-491.843$	55.087	25.268
5. Other financial income	136
IV. FINANCIAL EXPENSES (138 do 141)	137	85 440 323	23.320.199	59.078.821	12.690.481
1. Interest expenses, foreign exchange losses and similar expenses from related parties	138	9.257.772	2.531.148	10.478.257	1,922.032
2. Interest expenses, foreign exchange gains and similar expenses from
non - related parties and other entities	139	76.182.551	20.789.051	47.376.692	11.284.238
3. Unrealized losses (expenses) on financial assets	140	0	0	1,223.872	$-515.790$
4. Other financial expenses	141	Ω	Ω	0
V. INCOME FROM INVESTMENT - SHARE IN PROFIT OF ASSOCIATED ENTREPRENEURS	142	Ω		$\Omega$	$\Omega$
VI. LOSS FROM INVESTMENT - SHARE IN LOSS OF ASSOCIATED ENTREPRENEURS	143	$\Omega$			0
VII. EXTRAORDINARY - OTHER INCOME	144	$\Omega$	O
VIII. EXTRAORDINARY - OTHER EXPENSES	145
IX. TOTAL INCOME (111+131+142 + 144)	146	2.577-227-462	890.099.585	3.133.447.407	1.061.234.743
X. TOTAL EXPENSES (114+137+143 + 145)	147	2.436.987.225	861.213.909	2.952.972,977	1.001.103.888
XI. PROFIT OR LOSS BEFORE TAXATION (146-147)	148	140.240.237	28.885.676	180.474.430	60.130.855
1. Profit before taxation (146-147)	149	140.240.237	28.885.676	180.474.430	60.130.855
2. Loss before taxation (147-146)	150			0
XII. PROFIT TAX	151	9.098.421	$-10.427.126$	33.814.594	13.419.749
XIII. PROFIT OR LOSS FOR THE PERIOD (148-151)	152	131.141.816	39.312.802	146.659.836	46.711.106
1. Profit for the period (149-151)	153	131.141.816	39.312.802	146.659.836	46.711.106
2. Loss for the period (151-148) APPENDIX to P&L account (to be filled in by entrepreneur that prepares consolidated financial report)	154	$\Omega$	0	$\circ$
XIV. PROFIT OR LOSS FOR THE PERIOD
1. Attributed to equity holders of parent company	155	130 976 479	39.089.214	142.191.097	44.939.595
2. Attributed to minority interest	156	165.337	223.588	4.468.739	1.771.511
STATEMENT OF OTHER COMPREHENSIVE INCOME (IFRS)
I. PROFIT OR LOSS FOR THE PERIOD (= 152)	157	131-141-816	39.312.802	146,659.836	46.711.106
II. OTHER COMPREHENSIVE INCOME / LOSS BEFORE TAX (159 do 165)	158	$-712.339$	$-1.070.072$	$-14.032.100$	1.166.151
1. Exchange differences on translation of foreign operations	159	$-712.339$	$-1.070.072$	$-14, 179, 799$	1.134,854
2. Movements in revaluation reserves of long - term tangible and intangible assets	160
3. Profit or loss from reevaluation of financial assets available for sale	161			147.699	31.297
4. Gains or losses on efficient cash flow hedging	162
5. Gains or losses on efficient hedge of a net investment in foreign countries	163
6. Share in other comprehensive income / loss of associated companies	164
7. Actuarial gains / losses on defined benefit plans	165
III. TAX ON OTHER COMPREHENSIVE INCOME FOR THE PERIOD	166
IV. NET OTHER COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (158-166)	167	$-712.339$	$-1.070.072$	$-14.032.100$	1.166.151
V. COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (157+167)	168	130.429.477	38.242.730	132.627.736	47.877.257
APPENDIX to Statement of other comprenhensive income (to be filled in by entrepreneur that prepares consolidated financial report)
VI. COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD
1. Attributed to equity holders of parent company	169	130.349.294	37.833.533	128.502,780	46.250.998
2. Attributed to minority interest	170	80.183	409.197	4.124.956	1,626,259

STATEMENT OF CASH FLOWS - INDIRECT METHOD for the period 1.1.2016. to 30.09.2016.

Obligator: Podravka prehrambena industrija d.d., Koprivnica
Item		Last year	Current year
	$\overline{2}$	з	$\boldsymbol{A}$
CASH FLOW FROM OPERATING ACTIVITIES
1. Profit before tax	001	140.240.237	180-474.430
2. Depreciation	002	101.224.325	136, 132, 953
3. Increase in short term liabilities	003	1,698.600	19.970.634
4. Decrease in short term receivables	004	0	49.859.700
5. Decrease in inventories	005
6. Other increase in cash flow	006	16.068.480	7.683.412
I. Total increase in cash flow from operating activities (001 to 006)	007	259.231.642	394,121.129
1. Decrease in short term liabilities	008
2. Increase in short term receivables	009	83.637.187
3. Increase in inventories	010	78.021.075	66.545.153
4. Other decrease in cash flow	011	65.282.500	28.261.810
II. Total decrease in cash flow from operating activities (008 to 011)	012	226.940.762	94.806.963
A1) NET INCREASE IN CASH FLOW FROM OPERATING ACTIVITIES (007-012)	013	32.290.880	299.314.166
A2) NET DECREASE IN IN CASH FLOW FROM OPERATING ACTIVITIES (012-007)	014	0
CASH FLOW FROM INVESTING ACTIVITIES
1. Cash inflows from sales of long-term tangible and intangible assets	015	5.895.194	1.915.599
2. Cash inflows from sales of equity and debt instruments	016	399.751.329	201.190.722
3. Interests receipts	017	2.177.147	2.319.673
4. Dividend receipts	018
5. Other cash inflows from investing activities	019	267.786	1.008.754
III. Total cash inflows from investing activities (015 to 019)	020	408.091.456	206.434.748
1. Cash outflow for purchase of long-term tangible and intangible assets	021	144.710.000	383.718.840
2. Cash outflow for acquisition of equity and debt financial instruments	022	542.607.032	210.277.033
3. Other cash outflow for investing activities	023	4.130.466	277.032
IV. Total cash outflow for investing activities (021 do 023)	024	691.447.498	594.272.905
B1) NET INCREASE IN CASH FLOW FROM INVESTING ACTIVITIES (020-024)	025	0
B2) NET DECREASE IN CASH FLOW FROM INVESTING ACTIVITIES (024-020)	026	283.356.042	387.838.157
CASH FLOW FROM FINANCIAL ACTIVITIES
1. Cash inflow from issuing property and debt financial instruments	027	506.393.995
2. Proceeds from the credit principal, promissory notes, borrowings and other loans	028	229.520.171	468.726.488
3. Other proceeds from financial activities	029	3.011.260	3.307.617
V. Total cash inflows from financial activities (027 to 029)	030	738.925.426	472.034.105
1. Cash outflow for repayment of credit principal and bonds	031	313.614.289	393,158,756
2. Cash outflow for dividends paid	032	0	48.479,634
3. Cash outflow for financial lease	033	1.349.747	1.372.363
4. Cash outflow for purchase of treasury shares	034	3.571.509	12.976.357
5. Other cash outflow for financial activities	035	0
VI. Total cash outflow for financial activities (031 to 035)	036	318.535.545	455.987.110
C1) NET INCREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES (030-036)	037	420.389.881	16.046.995
C2) NET DECREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES (036-030)	038
Total increase in cash flow $(013 - 014 + 025 - 026 + 037 - 038)$	039	169.324.719
Total decrease in cash flow $(014 - 013 + 026 - 025 + 038 - 037)$	040	0	72.476.996
Cash and cash equivalents at the beginning of the period	041	220.478.018	291.877.418
Increase of cash and cash equivalents	042	169.324.719
Decrease of cash and cash equivalents		0
Cash and cash equivalents at the end of the period	043 044	389.802.737	72.476.996 219.400.422

STATEMENT OF CHANGES IN EQUITY for the period 1.1.2016. to 30.09.2016.

Obligator: Podravka prehrambena industrija d.d., Koprivnica
Item		Last year	Current year
	$\overline{2}$	з	4
1. Subscribed capital	001	1.566.400.660	1.566.400.660
2. Capital reserves	002	186.262.938	184.621.533
3. Reserves from profit	003	483.130.297	534.177.826
4. Retained earnings or accumulated loss	004	116.939.896	400.912.725
5. Profit or loss for the current year	005	397.310.409	142,191.097
6. Revaluation of long - term tangible assets	006
7. Revaluation of intangible assets	007
8. Revaluation of financial assets available for sale	008
9. Other revaluation	009	67.711.486	48.195.956
10. Total capital and reserves (AOP 001 do 009)	010	2.817.755.686	2.876.499.797
11. Currency gains and losses arising from net investement in foreign operations	011	1.100.544	$-14.032.100$
12. Current and deferred taxes (part)	012
13. Cash flow hedging	013
14. Changes in accounting policy	014
15. Correction of significant errors in prior period	015
16. Other changes of capital	016	1.031.391.984	72.776.211
17. Total increase or decrease in capital (AOP 011 do 016)	017	1.032.492.528	58.744.111
17 a. Attributed to equity holders of parent company	018	1.026.545.571	54.619.155
17 b. Attributed to minority interest	019	5.946.957	4.124.956

Notes:

During 2016 the Group changed its accounting policy for revenue recognition to which sales is stated in amounts that are additionally reduced by contracted cost of marketing and sales promotion with customers.