Zagreb, July 31 - Croatian food company Podravka posted a marginally higher first-half net profit on Thursday amid rising sales, mostly in foreign markets.
Net profit rose 3 percent to 22.9 million kuna ($4.96 million), while sales rose 8 percent to 1.71 billion kuna.
"In the first six months our sales rose 1 percent in Croatia and 17 percent on foreign markets. The biggest increase in sales came on the markets of southeastern Europe," Podravka said in a statement.
Podravka operates in southeastern, central and eastern Europe, producing powdered food seasoning Vegeta, soups and meals, pasta, canned meat and children's food. It also has a pharmaceuticals business.
Analysts have criticised Podravka in recent years for excessive operating costs and slow restructuring. The company changed management earlier this month in an effort to boost profits.
Podravka's net profit in 2007 amounted to 18.3 million kuna, down from 60.4 million kuna in 2006.
The government is the biggest single shareholder with a stake of almost 27 percent. It has announced tentative plans to privatise its stake, but with no concrete details.
Podravka's shares closed at 365 kuna on Wednesday and were not active in early trade on Thursday. Their year high was 514 kuna, reached in early January.