Zagreb, Oct 27 - Croatia's biggest food group Podravka said on Monday its nine-month net profit soared 52 percent from the same period a year ago to 51.2 million kuna ($8.79 million), as sales rose.
Operating profit rose 26 percent to 116.9 million kuna compared with the same period last year, the company said in a statement.
Overall sales rose 7 percent to 2.69 billion kuna. Domestic sales fell 1 percent, but sales on its foreign markets, particularly in southeastern Europe, Poland and the Czech Republic, rose as much as 17 percent.
Podravka, which is 26.5 percent owned by the state, operates in southeast, central and east Europe and produces powdered food, seasoning Vegeta, soups and meals, pasta, canned meat and children's foods. It also has a profitable pharmaceutical branch.
The company did not elaborate on what had boosted profitability, but Chief Executive Zdravko Sestak said in an interview with Reuters this month that restructuring efforts would pay off this year.
Podravka had been criticised by analysts for excessive operating costs and being too slow in streamlining its business.
The new management, which took over in July, said its restructuring efforts would include layoffs and rearranging the production mix to make space for more competitive products.
Podravka's 2007 net profit was just 18.3 million kuna, while its first-half 2008 net was 22.9 million kuna.
The company's shares were quoted at 275.01 kuna in early afternoon trade on Monday, 7.68 percent lower than Friday's close. The stock has tracked equities markets lower.