Podravka, Croatia's leading food manufacturer, has announced that CEO Darko Marinac will become president of the company's supervisory board. Other management change announcements are expected.

Podravka posted a sharply lower net profit of €2.5 million in 2007 compared to €8.3 million a year before.  The company has been criticised by analysts in recent years for excessive operating costs and a slow restructuring process. Marinac commented: "The company needs changes to improve its business. I believe major changes are not possible if a chief executive remains the same."

"Changes in management will take place at a regular annual meeting during the summer. Podravka has increased its revenues in recent years, but a problem of lagging profitability persists," said Deputy Prime Minister Damir Polancec. The state is the biggest shareholder with a stake of almost 27%. The government has already announced tentative plans to sell its stake, but no concrete timetable has been given. "We've had intensive talks with the company's management and its chief executive for a long period and it is a mutual conclusion that changes are necessary," added Polancec.

Podravka is a maker of ready-made soups and meals, pasta, canned meat and children food, operates in southeastern, central and eastern Europe.