What kind of year does "Pekabesko" expect? How much can the current geopolitical developments affect the economy and the increase in the price of "Pekabesko"'s deli products? In a statement to Club200 , the company's third executive director Markо Kutrevski talks about the initial analyses.

Just as the world has recovered from the consequences of the Covid pandemic and the energy crisis, we are now facing new challenges, which are due to the huge jump in oil and energy prices, and as expected, this can also cause a jump in product prices.

It seems that the initial projections and analyses are falling flat, and the consequences of the conflict in Iran will also affect the operations of companies.

How did "Pekabesco" rank among the 200 LARGEST AND SUCCESSFUL in the last five years?

"Pekabesko" AD - Ilinden is a leader in the market for trade in cured meat products, which places a large part of its production on the domestic market, and exports about 50% of its production to the markets of the former Yugoslav Republics.

If we look at the financial indicators over the last five years, it is notable that both their production and the company's success have largely depended on price shocks, geopolitical developments, and the geopolitical situation in the world and the region in general.

Thus, in 2020, the company achieved total revenue of 4,643,092,170 denars and profit before tax of 111,041,778 denars. Compared to the previous year, in 2020 , "Pekabesko" recorded a decrease in total revenue by 8.10%, and a decrease in profit before tax by 6.75 % was also recorded.

It is clear that these results were a consequence of the Covid pandemic, limited consumption, and reduced purchasing power among consumers.

In 2021, the company achieved a total revenue of 4,855,641,879 denars, but it is noteworthy that in terms of profit before tax there is a large drop of about 20.86%. The achieved profit before tax of about 87,902,959 denars is the result of the consequences of the Covid pandemic that were still being felt, but also of the energy crisis that has gripped the country since November of that year and caused a spike in energy prices and increased costs for companies.

The following year, 2022, was one of the most successful years for the company, when "Pekabesko" achieved total revenue of 5,358,231,768 denars and profit before tax of 114,689,064 denars.

In percentage terms, in negative percentage terms, "Pekabesko" in 2022 could boast a revenue growth of 10.35 % and a profit before tax growth of 30.47%.

Thanks to this major leap, the company has moved up 33 places on the ranking of the most successful Macedonian companies, from 190th place ( in 2021) to 157th place in 2022.

This was followed by two more years of continuous growth. In 2023, the company achieved total revenue of 5,540,269,400 denars and profit before tax of 153,526,024 denars.

Compared to the previous year, revenue growth is 3.40 % , while profit before tax growth is 33.86 % , which has pushed the company even higher (to   136th place) within the ranking of the 200 LARGEST AND SUCCESSFUL.

In 2024 , "Pekabesko" was ranked 46th on the list of the largest and 112th on the list of the most successful companies. This is the year in which a total revenue of 5,974,143,089 denars was achieved, or 7.83% higher than the previous year, and a profit before tax of 186,277,049 denars , which is an increase of 21.33%.

The price of products also largely depends on geopolitical developments.

The dependence on the price of raw materials, energy, as well as geopolitical developments for the development of "Pekabesko" is also confirmed by Marko Kutrevski, the third executive director, in a statement to Club200. According to him, the initial expectations were that 2026 would also be a year of moderate growth, but it is obvious that the war in Iran could leave consequences.

" After the COVID-19 pandemic and during the inflationary pressure, the deli market faced a decrease in sales volumes. The increase in the prices of raw materials and final products led to reduced purchasing power among consumers, which was directly reflected in a decline in sales volumes in this segment.

This trend continued until last year, when the market gradually began to stabilize. During the past year, a stabilization of demand and quantities sold was observed.

"For the current year, we expect moderate market growth and a gradual increase in quantities, provided that there are no major geopolitical or economic disruptions to the global market, such as the current tensions related to Iran ," he emphasizes.

As he says, the price of the final product depends on several factors, and although the company has made investments in recent years to reduce energy dependence and protect itself from price shocks, there are still unpredictable factors on which the company's successful operations depend.

"In the structure of total production costs, raw materials have the largest share and are a key factor that determines the final price of products."

In addition to raw materials, energy costs also have a significant impact, as well as labor costs, which have been on an increasing trend in recent years.

Many of these factors are beyond the direct control of the company. Commodities are exchange-traded products whose prices are formed on global markets and cannot be easily replaced or significantly optimized.

The situation is similar with energy, the price of which largely depends on external economic and geopolitical factors. In recent years, the company has invested in photovoltaic systems, thus covering a significant part of its own electricity needs through its own production.

However, the costs associated with natural gas and petroleum derivatives remain factors that depend on market conditions and cannot be directly controlled," he emphasizes.

Otherwise, "Pekabesko" remains the market leader in the production and trade of cured meat products. The company is a long-standing member of the 200 LARGEST AND SUCCESSFUL family.

Read more about the history and long-standing tradition of "Pekabesko" at the following LINK.

Photo: Private Archive