ZAGREB, Feb 14 (Reuters) - Croatian food company Podravka returned to profit last year, helped in part by better cost management.
Podravka posted a 2010 net profit of 84.2 million kuna ($15.4 million) on sales down 2 percent to 3.52 billion, after a 381 million loss in 2009. Operating profit (EBIT) came in at 205 million kuna, versus a 267 million loss in 2009.
Its 2009 loss was caused by transactions being investigated by anti-graft prosecutors. Six former top company executives and a former deputy prime minister, Damir Polancec, have been accused of trying to acquire a majority stake in Podravka using the company's own funds.
"Despite somewhat lower sales we made improvements on all levels of profitability last year due to a better cost management," Podravka said on Monday.
Podravka, 20-percent owned by the state, is active in central, eastern and southeastern Europe. It produces the popular Vegeta seasoning, soups, childrens' and ready-made food, and has a profitable pharmaceutical branch. (Reporting by Igor Ilic; Editing by Dan Lalor) ($1 = 5.469 Croatian kuna)