ČAKOVEČKI MLINOVI D.D.
CONSOLIDATED
ANNUAL REPORT
FOR YEAR 2024
1
CONTENT
Page
1. CONSOLIDATED MANAGEMENT REPORT FOR THE YEAR 2024
2
1. CORE BUSINESS AND GENERAL INFORMATION
3
ABOUT THE GROUP ČAKOVEČKI MLINOVI
4
BUSINESS SEGMENT AND BUSINESS OPERATIONS
4
COMPANY BODIES AND CORPORATE GOVERNANCE
6
2. SUBSIDIARIES AND ASSOCIATED COMPANIES
11
3. BUSINESS RESULTS IN 2024
12
4. OWNERSHIP STRUCTURE AND PERFORMANCE OF CKML SHARES
20
5. SIGNIFICANT EVENTS AFTER THE END OF THE FINANCIAL YEAR
22
6. EXPECTED BUSINESS DEVELOPMENT IN 2025
23
7. RISK AND RISK MANAGEMENT OF THE GROUP
24
8. INFORMATION ON ACQUISITION AND RELEASE OF OWN SHARES
24
9. RESEARCH AND DEVELOPMENT ACTIVITIES
24
10. EMPLOYEES STRUCTURE
25
11. SUSTAINABILITY REPORT FOR THE YEAR 2024
26
STATEMENT OF MANAGEMENT’S RESPONSIBILITY FOR THE
SUSTAINABILITY REPORT
120
2. INDEPENDENT LIMITED ASSURANCE REPORT
121
3. CONSOLIDATED STATEMENT ON THE APPLICATION OF THE CORPORATE
GOVERNANCE CODE OF THE GROUP FOR THE YEAR 2024
127
4. CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR 2024
131
RESPONISBILITY OF THE MANAGEMENT FOR PREPARATION AND
APPROVAL OF THE ANNUAL REPORT
132
STATEMENT OF THE PERSONS RESPONSIBLE TO PREPARE FINANCIAL
STATEMENTS
133
INDEPENDENT AUDITOR’S REPORT
134
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
141
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
143
CONSOLIDATED STATEMENT OF CASH FLOWS
144
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
145
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
146
This version of the Annual report is translation from the original, which was prepared in the Croatian
language. All possible care has been taken to ensure that the translation is an accurate representation
of the original. However, in all matters of interpretation of information, views or opinions, the original
language version of the Annual report takes precedence over this translation.
2
MANAGEMENT REPORT FOR 2024
ČAKOVEČKI MLINOVI D.D.
CONSOLIDATED
MANAGEMENT REPORT
FOR THE YEAR 2024
3
1. CORE BUSINESS AND GENERAL INFORMATION
ABOUT THE GROUP ČAKOVEČKI MLINOVI
Čakovečki mlinovi d.d. (hereinafter: "Čakovečki mlinovi" or "Company"), founded in 1893 in Čakovec, is
one of the oldest Croatian food and trade companies. The company operates a vertically integrated business
model comprising the production of high-quality milling, bakery and oil products on the one hand and the
retail sale of grocery products on the other hand. Although food production is a tradition and heritage of the
Company, the Company has developed through a series of successful acquisitions and integrations of retail
retail chains into a business system that today generates the largest part of its revenue from the trade activities.
Čakovečki mlinovi d.d. has three subsidiaries: Trgovina Krk d.d. Malinska, Trgocentar d.d. Virovitica and
Radnik Opatija d.d. Lovran (hereinafter: "Čakovečki mlinovi Group" or "Group") and one associated
company: Narodni trgovački lanac d.o.o. Soblinec. In addition to these consolidated reports of the Group,
Čakovečki mlinovi d.d. is also preparing a non-consolidated report of the Company.
In 2024 Čakovečki mlinovi Group generated EUR 209.5 million in total revenues based on total assets in the
amount of EUR 113.2 million and employed an average 2,072 employees on the basis of working hours.
According to the Accounting Act (Official Gazette 85/24, 145/24), the Group Čakovečki mlinovi belongs to
a large-sized group of entrepreneurs.
The shares of Čakovečki mlinovi d.d. are listed on the Official Market of the Zagreb Stock Exchange under
the symbol CKML. As of December 31, 2024, the Company had issued and listed 10,290,000 shares with a
market capitalization of EUR 109.1 million.
On July 26, 2024 the Company received a dividend in the amount of EUR 7,000,000 from its subsidiary
Trgovina Krk d.d., while on September 26, 2024 Čakovečki mlinovi d.d. paid a dividend in the amount of
EUR 1,029,000 (EUR 0.10 per share).
HISTORICAL DEVELOPMENT
The Čakovečki mlinovi Group is marked by a 130-year tradition of milling and continuous and pronounced
acquisition growth in the trade and bakery segments.
1893. Establishment of the company Čakovečki mlinovi d.d. in Čakovec;
Construction of the Čakovec mill
1946. Nationalization of the company Čakovečki mlinovi d.d.
1961. Construction of a bakery plant in Čakovec
1973. Takeover of the Konjščina bakery
1975. Takeover of the Oroslavje bakery
1985. Construction of an industrial bakery in Čakovec
1992. Transformation of the social enterprise Čakovečki mlinovi into a joint stock company;
Privatization
1994. Takeover of the company Radnik Opatija d.d. Lovran
1996. Takeover of the company Primorac d.o.o.. Rijeka;
Reconstruction and increase of the production capacity of the Čakovečk mill to 200 tons/day
1999. Takeover of Trgovina Krk d.d. Malinska
4
2001. Introduction of the frozen program in the Čakovec bakery
2003. Takeover of the company Trgocentar d.d. Čakovec;
Establishment of the company METSS d.o.o.. Čakovec;
Listing of CKML shares on the Zagreb Stock Exchange
2007. Takeover of the company Vražap d.d.. Zadar;
Takeover of the company Pogača Babin Kuk d.o.o. Dubrovnik
2010. Takeover of Trgostil d.d.. Donja Stubica
2011. Takeover of the company Trgocentar d.d. Virovitica
2017. Takeover of the company Kvarner Punat trgovina d.o.o. Punat;
Reconstruction and increase of the production capacity of the Čakovec mill to 300 tons/day
2021. Merger of METSS d.o.o. with Trgovina Krk d.d.;
The division of Radnik Opatija d.d. and merger of the commercial segment with Trgovina Krk d.d.;
Split of CKML shares
2022. Merger of Trgostil d.d. with Trgovina Krk d.d.
BUSINESS SEGMENTS AND OPERATIONS
The Čakovečki mlinovi Group is organized into two strategic business segments:
- trade, which includes retail and wholesale of food and non-food assortment, and
- food, which includes the production of mill and bakery products and oil.
Čakovečki mlinovi d.d. manages segments from a strategic level and acts as the Group's corporate center.
The Trgovina business segment is operationally managed by Trgovina Krk d.d. The Food business segment
is operationally managed by Čakovečki mlinovi d.d. and Radnik Opatija d.d.
The Group's business segments, and their key operational indicators are presented below.
Trade
KEY OPERATIONAL INDICATORS
31/12/2024
31/12/2023
Number of retail stores
421
434
Area of retail stores (in m2 net)
54,867
55,104
Average store area (in m2 net)
130
127
Share of retail store area owned by
67%
63%
Area of distribution warehouses (in m2 gross)
11,343
11,343
Average number of employees
1,831
1,995
Trade is the largest segment of the Čakovečki mlinovi Group, which generated 87% of the Group's sales
revenue before eliminations.
5
The Trade segment is organized into two business areas:
- retail – trade predominantly in food and to a lesser extent non-food assortment
- wholesale – trade in food, non-food and construction assortment.
Retail accounts for 97% of sales revenues in the Trade segment.
As of December 31, 2024 the Trade operated in 421 retail stores located in northwestern Croatia, Kvarner
and the island of Krk. The total net sales area amounted to 54,867 m2, of which about 67.4% is owned by
the Group. The main factors of the Stores segment's offer are the proximity of stores and the local assortment,
which is why the Group's retail stores are mostly located in smaller settlements or residential areas and have
an average net sales area of up to 130 m2. This format of stores in Croatia is defined as a market or
supermarket and is better known internationally as a proximity format due to its characteristic proximity to
customers.
Trgovina Krk d.d. holds a 25% ownership stake in the company Narodni trgovački lanac d.o.o. (hereinafter:
"NTL"), the largest purchasing association for food goods in Croatia, through which it realizes about 75% of
the procurement of goods. In addition to providing commercial services to its members, developing the NTL
brand and purchasing and distributing fruit and vegetables, NTL operates its own retail network of 346 stores
and 9 wholesale logistics and distribution centers. In 2024 NTL generated €238.1 million in total revenues
(2023: EUR 178.3 million) and EUR 5 million in net profit (2023: EUR 5.3 million). Trgovina Krk d.d. also
holds a 10% ownership stake in Grandal grupa Ltd., the largest purchasing association for building materials
in Croatia.
Food
KEY OPERATIONAL INDICATORS
31/12/2024
31/12/2023
Annual mill processing capacity (tonnes)
80,000
80,000
Grain processing (tonnes)
59,591
51,738
Average mill capacity utilization
74%
68%
Grain storage capacity (tonnes)
22,000
22,000
Flour storage capacity (tonnes)
2,000
2,000
Annual production capacity of bakeries (tonnes)
12,599
12,599
Manufacture of bakery products (tonnes)
7,762
7,685
Average capacity utilization of bakeries
62%
61%
Oil production (tonnes)
89
33
Average number of employees
278
281
The Food segment covers food production and is organized into three business areas:
- milling – production of flour and other milling products and, to a lesser extent, porridge and fodder
flour
- bakery – production of predominantly bread, pastries and cakes and, to a lesser extent, dough
- oil production – own production of pumpkin seed and service production of olive oil.
At the end of 2024 the Food segment operated two milling plants (Čakovec, Donji Kraljevec) with a total
production capacity of 80,000 tons per year, four bakery plants (Čakovec, Oroslavje, Lovran, Malinska) with
a total production capacity of 12,599 tons per year, and two oil mills (Čakovec, Punat).
6
COMPANY BODIES AND CORPORATE GOVERNANCE
The corporate governance of the Company is based on a dualistic system and structure consisting of the
Supervisory Board and the Management Board of the Company. The Supervisory Board and the Management
Board, together with the General Assembly, in accordance with the Articles of Association and the
Companies Act, represent the three basic bodies of the Company. The specific management authority and
responsibilities of these management bodies are regulated by the relevant Croatian legislation, the Company's
Articles of Association, and the Code of Corporate Governance, as well as ordinances or prescribed acts.
Based on the Company's Articles of Association of August 30,2023 the General Assembly of the Company
elects six members of the Supervisory Board, while one member is appointed by the Company's employees
in the manner prescribed by law. Members of the Supervisory Board shall be elected for a term of four years.
The Supervisory Board appoints members of the Management Board of the Company for a term of office of
up to five years.
During 2024 the composition of the Company's Management Board, the Supervisory Board and the
subcommittee of the Supervisory Board was subject to multiple changes. The Company has publicly
informed relevant stakeholders about all these changes, in accordance with the prescribed obligations,
without delay (details available on the Company's website: https://cak-mlinovi.hr/obavijesti/).
Composition of the Management Board of the Company as at 31 December 2024:
- Mario Sedlaček, President of the Management Board,
- Marijan Sršen, Member of the Management Board and
- Krešimir Kvaternik, Member of the Management Board.
All members of the Management Board are authorized to represent the Company independently and
individually.
Composition of the Supervisory Board of the Company as of 31 December 2024:
− Damir Metelko, President of the Supervisory Board,
− Franjo Plodinec, Deputy Chairman of the Supervisory Board,
− Igor Komorski, Member of the Supervisory Board,
− Josip Plodinec, Member of the Supervisory Board,
− Mislav Ante Omazić, Member of the Supervisory Board and
− Vanja Kutnjak, Member of the Supervisory Board, workers' representative.
During 2024 the Supervisory Board held a total of eleven sessions.
The Management Board and the Supervisory Board of the Company act at meetings or by correspondence,
in accordance with the provisions of positive regulations and acts of the Company.
More details on corporate governance in the Company in 2024 are available below and in the Consolidated
Statement on the Application of the Code of Corporate Governance.
Changes in the composition of the Management Board in 2024
− On March 6, 2024 Nino Varga, President of the Management Board of the Company, submitted his
resignation to the Supervisory Board;
− by the decision of the Supervisory Board of the Company of March 6, 2024 Krešimir Kvaternik was
appointed to the position of Deputy President of the Management Board, for the term of office from
March 7 to October 7, 2024 (the role of Krešimir Kvaternik as the President of the Supervisory
Board of the Company during the performance of the function of the Deputy President of the
Management Board is in the status of rest);
− by the decision of the Supervisory Board of the Company of October 7, 2024 Krešimir Kvaternik's
term of office as Deputy President of the Management Board was extended for the term of office
from October 8 to December 31, 2024 (for the same period of time, the status of suspension of
Krešimir Kvaternik's position as President of the Supervisory Board was continued);
7
− On November 28, 2024 Krešimir Kvaternik resigned from the position of Deputy President of the
Management Board of the Company (as well as from the position of member and President of the
Supervisory Board of the Company);
− By the decision of the Supervisory Board of the Company of November 28, 2024Mario Sedlaček
was appointed President of the Management Board of the Company, and Krešimir Kvaternik was
appointed a member of the Management Board. Both members of the Management Board were
appointed for a term of office starting from November 29, 2024 to December 31, 2026.
Changes in the composition of the Supervisory Board in 2024
− in the free and direct elections of employees, Vanja Kutnjak was elected as the employee
representative to the Supervisory Board of the Company, for a term of 4 years, starting from March
22, 2024replacing the former representative Lidija Posavec;
− On 26 July 2024 Katarina Varga, a member of the Supervisory Board, the Audit Committee, the
Nomination Committee and the Remuneration Committee, resigned from the Supervisory Board and
its subcommittees as of 28 August 2024;
− by the decision of the General Assembly of the Company of August 28, 2024Josip Plodinec, Franjo
Plodinec and Mislav Ante Omazić were appointed to the Supervisory Board;
− On November 28, 2024Krešimir Kvaternik resigned from the position of member and chairman of
the Supervisory Board and subcommittee of the Supervisory Board (he also resigned from the
position of deputy chairman of the Management Board of the Company). Krešimir Kvaternik's
position in the Supervisory Board and its subcommittees in the period from 7 March to 28 November
2024 was suspended for the purpose of performing the function of Deputy President of the
Management Board of the Company.
General Assemblies in 2024
In 2024 one General Assembly of the Company was held. At the General Assembly, which was held on
August 28, 2024 the following key decisions were adopted: a decision on the use of profit for 2023, a decision
on the payment of dividends from net profit for 2023 and the payment of dividends from a part of retained
earnings realized in 2022, decisions on granting discharge to members of the Management Board and
Supervisory Board of the Company for their work in 2023 Decision on approval of the Report on
Remuneration of Members of the Management Board and Supervisory Board for 2023 Decision on approval
of amendments to the Remuneration Policy of Members of the Management Board of Čakovečki mlinovi
d.d., Decision on the appointment of members of the Supervisory Board and Decision on the appointment of
the Company's auditor for 2024. All decisions of the General Assembly are published in accordance with
legal regulations and are available on the websites of Čakovečki mlinovi (www.cak-mlinovi.hr) and the
Zagreb Stock Exchange (www.zse.hr).
Resumes of the Supervisory Board members
Damir Metelko
Chairman of the Supervisory Board
He graduated from the Faculty of Law in Zagreb. He began his career in 1991 at the law firm Hanžeković &
Radaković d.o.o. as an attorney-at-law. In 2003, he became a member of the company, i.e. partner, and later
a member of the management board. He will hold this position until 2020. He continues his career at the Law
Firm Metelko, Knežević & Partners d.o.o. as a partner and member of the Management Board. He is a
member of the Croatian Chamber of Commerce, the Executive Board of the Croatian Chamber of Commerce,
the Board of Directors of the Croatian Chamber of Commerce and the Taxation Commission – ICC Croatia.
He has been a member of the Supervisory Board of Čakovečki mlinovi since August 2020, since September
2023 he has held the position of Deputy Chairman of the Supervisory Board, and since November 2024 he
has become the President of the Supervisory Board. He is an independent member of the Supervisory Board
of Čakovečki mlinovi.
8
Franjo Plodinec
Deputy Chairman of the Supervisory Board
He graduated from the Faculty of Economics and Business in Zagreb, majoring in accounting. He started his
career in 2004 in the company Plodinec Ltd., then continued his work in the company Zagrebačke pekarne
Klara d.d., first as an advisor to the management, then as a director of the commercial sector and since 2012
as an advisor to the Management Board, which function he still performs today.
He is the Chairman of the Supervisory Board of Zagrebačka Pekarna Klara d.d. and Prehrana trgovina d.d.,
a member of the Supervisory Board of Papuk Našice d.o.o. and a director of Coolway d.o.o.
He has been a member of the Supervisory Board of Čakovečki mlinovi since August 2024and has been the
Deputy Chairman of the Supervisory Board since November 2024.
Josip Plodinec
Member of the Supervisory Board
He earned the title of food technician at the Food Technology School in Zagreb. He started his career in 2002
in the company Plodinec Ltd., and in 2003 he moved to the position of advisor to the Management Board in
Mlin i Pekare d.o.o. In 2009, he was appointed director of the company Prehrana trgovina d.d. Zagreb. After
that, he again took over the position of advisor to the Management Board in the company Mlin i Pekare d.o.o.
Sisak. He is currently the director of the company New Mip d.o.o. Sisak.
He is the Chairman of the Supervisory Board of Ultra Gros Ltd., Deputy Chairman of the Supervisory Board
of Mlin i Pekare Ltd., Papuk Našice d.o.o. and Zagrebačka pekarna Klara d.d., he is a member of the
Supervisory Board of Prehrana trgovina d.d. He is a member of the Management Board of the company
Agro-Čepin d.o.o., and he performs the function of director in the companies Plo-Rent d.o.o. and NewMip
d.o.o. He has been a member of the Supervisory Board of Čakovečki mlinovi d.d. since August 2024.
Mislav Ante Omazić, prof. dr. sc.
Member of the Supervisory Board
He received his PhD from the Faculty of Economics and Business in Zagreb, in the scientific field of
economics, organization and management. He is the author of many scientific and professional projects and
a guest lecturer at numerous educational institutions in Croatia and abroad.
He started his career in 2008 as an assistant professor for organization and management at the Faculty of
Economics and Business in Zagreb, in 2013 he became the head and associate professor, and in parallel in
2014 he held the position of Vice-Dean for Teaching, Students and Quality Management. He gained
knowledge and experience in the field of corporate governance and the functioning of management bodies
while working on the Supervisory Board of the Zagreb Stock Exchange d.d. and Hrvatska poštanska banka
d.d., and as the President of the Board of Directors of the Institute of Economics in Zagreb. Today, he is a
full professor at the Department of Organization and Management at the Faculty of Economics and Business
in Zagreb.
He is currently the President of the Management Board of IEDC – Bled Business School, where he
contributes to the development of strategic initiatives and business management at the international level.
He has been a member of the Supervisory Board of Čakovečki mlinovi d.d. since August 2024He is an
independent member of the Supervisory Board of Čakovečki mlinovi.
Vanja Kutnjak
Member of the Supervisory Board
He graduated from the College of Security, where he earned a master's degree in safety and protection
engineering. He attended postgraduate studies at the Faculty of Organization and Informatics in Varaždin,
majoring in Business Systems Management. In 1989, he began his career in Čakovečki mlinovi d.d. During
his work, he is qualified to perform the function of an expert in occupational safety and fire protection. Thirty-
five years of work experience in Čakovečki mlinovi d.d. is marked by the experience of working in the
maintenance, laboratory and technical service departments. In 2021, he took over the position of head of the
technical service, whose domain includes the entire investment maintenance, fleet management and
procurement, as well as the management of the security department and laboratory.
He has been a member of the Supervisory Board of Čakovečki mlinovi since March 2024.
9
Igor Komorski
Member of the Supervisory Board
He graduated from the Faculty of Law in Zagreb. He began his career in 1997 at the Croatian Insurance
Bureau in the Guarantee Fund. Since 2006, he has been the head of the Green Card Department and since
2008 he has been the Assistant Director of the Croatian Insurance Bureau for the Guarantee Fund and the
Green Card. He is a Certified Mediator (USAID). He is a member of the Supervisory Board in the company
Primo Real Estate d.d. He holds the position of director in the companies Chepovi d.o.o. and VINA JAKOB
d.o.o..
He has been a member of the Supervisory Board of Čakovečki mlinovi since August 2023He is an
independent member of the Supervisory Board of Čakovečki mlinovi.
Subcommittees of the Supervisory Board
The Supervisory Board of the Company established the following subcommittees: the Audit Committee, the
Nomination Committee and the Remuneration Committee.
In addition to the tasks set out in Regulation (EU) No 537/2014, the Audit Committee shall also have the
following tasks:
- Reports to the Supervisory Board on the outcome of the statutory audit and explains how the statutory
audit has contributed to the integrity of financial reporting and explains the role of the audit committee
in this process,
- monitors the financial reporting process and submits recommendations or proposals to ensure its
integrity,
- with regard to financial reporting, monitor the effectiveness of the internal quality management and
risk management systems and, where applicable, internal audit, without compromising its
independence;
- monitors the performance of the statutory audit of annual financial statements and consolidated annual
financial statements,
- examines and monitors the independence of the audit firm in accordance with the Audit Act and
Regulation (EU) No. Regulation (EU) No 537/2014, and in particular the appropriateness of the
provision of non-audit services subject to its prior authorization,
- is responsible for the selection procedure of the audit firm and proposes the appointment of the audit
firm.
The composition of the Audit Committee as of 31 December 2024 is as follows: Franjo Plodinec (Chair),
Igor Komorski (Deputy Chairman), Damir Metelko (Member), Josip Plodinec (Member), Mislav Ante
Omazić (Member) and Vanja Kutnjak (Member).
In 2024 the Audit Committee held five sessions.
The Nomination Committee performs the following tasks:
- oversees the appointment process to the Supervisory Board and the Management Board to ensure that
it is fair and transparent;
- develops a description of roles and candidates for each vacant position in accordance with the profile
of the Management Board or the Supervisory Board (if necessary, in consultation with the President
of the Management Board or the Supervisory Board) and identifies and recommends suitable
candidates to the Supervisory Board,
- determines expertise and/or independence when searching for candidates for the Supervisory Board,
- negotiates the terms of appointment with potential new members of the Management Board or the
Supervisory Board, including the expected time required to perform their function,
- prepares a succession plan for the reappointment or replacement of members of the Supervisory Board
and the Management Board, in consultation with the President of the Management Board or the
Supervisory Board,
- monitors progress towards achieving the target percentage of female members of the Management
Board and the Supervisory Board;
- oversees the Management Board's policy in selecting and appointing senior management.
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The composition of the Nomination Committee as of 31 December 2024 is as follows: Igor Komorski (Chair),
Damir Metelko (Deputy Chair), Vanja Kutnjak, Josip Plodinec (Members).
In 2024 the Nominations Committee held one session.
The Remuneration Committee performs the following tasks:
- recommends to the Supervisory Board the remuneration policy for members of the Management Board
at least every three years,
- recommends to the Supervisory Board every year the remuneration that should be received by the
members of the Management Board, based on the assessment of the results of the Company and their
personal results,
- recommends to the Supervisory Board the policy of remuneration for members of the Supervisory
Board, which will be submitted to the General Assembly for approval,
- supervises the amount and structure of remuneration to senior management and workers as a whole,
and makes recommendations to the Management Board on its policies;
- supervises the preparation and submits to the Supervisory Board for approval the annual report on the
remuneration of the Management Board and the Supervisory Board prescribed by law.
The composition of the Admissions Committee as of 31 December 2024 is as follows: Igor Komorski
(Chairman), Damir Metelko (Deputy Chairman), Vanja Kutnjak, Franjo Plodinec (Members).
In 2024 the Remuneration Committee held one session.
In 2024 the members of the Supervisory Board and its subcommittees were present at the following sessions:
Supervisory
Board
Audit
Committee
Nomination
Committee
Remuneration
Committee
Katarina class
7/7
3/3
1/1
1/1
Damir Metelko
11/11
5/5
1/1
1/1
Lydia Posavec
3/3
1/1
-
-
Krešimir Kvaternik
3/3
1/1
-
-
Igor Komorski
11/11
5/5
1/1
1/1
Franjo Plodinec
4/4
2/2
-
-
Josip Plodinec
4/4
2/2
-
-
Vanja Kutnjak
8/8
4/4
1/1
1/1
Mislav Ante Omazić
4/4
2/2
-
-
Resumes of Management Board Members
Mario Sedlaček
Ceo
He graduated from the Faculty of Economics in Osijek, majoring in financial management. In 2012, he
completed his postgraduate studies and obtained the title of Master of Science. He started his career in the
company Papuk d.d., where he performed tasks in the sales sector, and in 2004 he moved to the company
Metalija-Trans d.o.o. as the head of retail and wholesale. He gained his further professional experience in
renowned companies such as Hofer KG, Mercator-H Ltd., Spar Hrvatska d.o.o. and PP Orahovica, in
positions that included management, planning, organization and control of operations in the areas of
procurement, sales and production.
Since 2016, he has held the position of director in the company Papuk Našice d.o.o., which he will leave in
2024simultaneously with his appointment as the President of the Management Board of Čakovečki mlinovi
d.d. Since 2024 (and today), he has been the President of the Management Board of Agro-Čepin d.o.o.
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Marijan Sršen
Curator
He graduated from the Faculty of Economics and Business in Zagreb, majoring in accounting. He started his
career in 2001 at Elektropromet d.d. as the head of accounting. In 2004 he moved to IHS-Revizor d.o.o. as
an auditor. From 2008 to 2011, he was the director of finance, accounting and controlling at Stipić grupa
d.o.o., after which he moved to Mlinar pekarska industrija d.o.o. as CFO. Since 2020, he has been a member
of the management board of Čakovečki mlinovi. During his business career, he obtained a certified auditor
certificate issued by the Croatian Chamber of Auditors.
He is the President of the Supervisory Board of Trgocentar d.d., Deputy Chairman of the Supervisory Board
of Trgovina Krk d.d. and Radnik Opatija d.d.
Krešimir Kvaternik
Curator
He holds a degree in International Economics and Political Science from the University of California, Los
Angeles. He is completing an MBA, a master's degree in business management at the IEDC Bled School of
Management. He started his career in 1998, in the consulting company Ernst & Young Management
Consultant and continued at Deloitte, in charge of providing consulting services to renowned Croatian and
foreign companies in Croatia and the region. He continues his career path at CEMEX as a manager for
strategic planning, acquisitions and business development, and then as CFO at the Financial Agency, and
subsequently at STSI Ltd., INA Group. He then continued his business career as a member of the
Management Board for Restructuring, Sales and Procurement at Petrokemija. In 2015, he founded the startup
Intelligent Warranty and at the same time works at Zagreb Holding d.o.o. as a financial director, and in the
same year he moved to HAC-ONC d.o.o. as a member of the Management Board in charge of IT and toll
collection. From 2016 to 2021, he acted as a procurator in the company ADRIATIC WATCH 22. d.o.o. He
is the director of Blochkthree Europe d.o.o. and 5i Digital d.o.o.
He is the President of the Supervisory Board of the companies Radnik Opatija d.d. and Trgovina Krk d.d.
and a member of the Supervisory Board of Trgocentar d.d. He held the position of President of the
Supervisory Board of Čakovečki mlinovi d.d. from September 2023 to March 2024after which his status in
the Supervisory Board is suspended until November 2024when he was appointed a member of the
Management Board of Čakovečki mlinovi d.d.
2. SUBSIDIARIES AND ASSOCIATED COMPANIES
Below is an overview of the affiliated companies of the parent company Čakovečki mlinovi d.d. as at 31
December 2024. The company has no registered branches.
Company Name
Headquarters
Principal
activity
Accounting
method
Direct
ownership
/voting
rights
Direct
ownership
/voting
rights
31/12/2024.
31/12/2023.
Trgovina Krk d.d.
Malinska,
Croatia
Retail
trade
Consolidated
100%
100%
Trgocentar d.d.
Virovitica,
Croatia
Real estate
lease
Consolidated
49.55% /
52.03 %
49.55% /
52.03 %
Narodni trgovački lanac
d.o.o.
Soblinec,
Croatia
Retail /
Wholesale
Equity
method
25%
25%
Radnik Opatija d.d.
Lovran,
Croatia
Bakery
Consolidated
100%
100%
12
3. BUSINESS RESULTS IN 2024
KEY EVENTS IN 2024
1. Continued revenue growth, reduced EBITDA, and decreased net profit in a challenging economic
environment
- Sales revenue of EUR 200.5 million (+3.8% year-on-year);
- Normalized earnings before interest, taxes, depreciation and amortization (EBITDA) of EUR 14.9
million ((4.1%) year-on-year), reduction of normalized EBITDA margin from 8.0% to 7.4%;
- Net profit of EUR 6.8 million (decrease of (6.2%) compared to the previous year), with a decrease in
net profit margin from 3.8% to 3.4%.
2. Dividend payments
In accordance with the decision of the General Meeting of the parent company of the Group held on August
28, 2024 the payment of dividend was approved in the amount of EUR 0.10 per share, i.e. a total of EUR
1,029,000.00, of which the amount of EUR 856,423.59 refers to the total net profit of the Company realized
in 2023 and the amount of EUR 172,576.41 from the part of retained profit generated in 2022.
The dividend was paid on September 26, 2024.
3. Agency for the Protection of Market Competition, Notice on Permissibility of Concentration
On 22 July 2024 the Croatian Competition Agency announced on its website that the Competition Council
had considered the notification of the intention to implement the concentration of undertakings resulting from
the acquisition of joint control on a permanent basis of the undertakings Mlin i pekare Ltd., Sisak, Ulica
kralja Zvonimira 24, Plodinec Ltd., Stari Čiče, Velika Gorica, Ulica Seljine brigade 43, Allianz ZB d.o.o.
for the management of mandatory and voluntary pension funds, Zagreb, Vjekoslava Heinzela 70, in its own
name, and on behalf of the funds under management of AZ mandatory pension fund – category A and AZ
mandatory pension fund – category B and PBZ Croatia osiguranje d.d. for the management of mandatory
pension funds, Zagreb, Radnička cesta 44, in its own name, and on behalf of the funds under management of
PBZ Croatia osiguranje mandatory pension fund – category B, over the undertaking Čakovečki mlinovi d.d.
and assessed that it can be reasonably assumed that the present case does not involve a prohibited
concentration within the meaning of the provision of Article 16 of the Merger Act. of the Competition Act
(OG 79/09, 80/13, 41/21, 153/23; CCA), and that the notification of a concentration in accordance with
Article 22, paragraph 1 of the CCA, is considered admissible at the 1st level.
4. Croatian Financial Services Supervisory Agency, Decision approving the publication of the offer for
the takeover bid of the company Čakovečki mlinovi d.d.
Upon the request at the session of the Board of Directors held on 26 August 2024 the Croatian Financial
Services Supervisory Agency adopts a Decision to the companies MLIN and PEKARE d.o.o., Sisak, Ulica
kralja Zvonimira 24,
PLODINEC Ltd., Staro Čiče, Ulica Seljine brigade 43, Allianz ZB d.o.o. mandatory and voluntary pension
fund management company, Zagreb, AZ mandatory pension fund category A, AZ mandatory pension fund
category B, AZ Profit voluntary pension fund, AZ Benefit open-end voluntary pension fund, AZ Third
Horizon closed-end voluntary pension fund, AZ A1 closed-end voluntary pension fund, AZ Dalekovod
closed-end voluntary pension fund, AZ CCL closed-end voluntary pension fund, AZ Zagreb closed-end
voluntary pension fund, Auto Hrvatska closed-end voluntary pension fund and AZ ZABA closed-end
voluntary pension fund and PBZ CROATIA OSIGURANJE d.d. for the management of mandatory pension
funds, Zagreb, approving the publication of the takeover bid for the company Čakovečki mlinovi d.d.,
Čakovec, Mlinska ulica 1.
13
KEY FINANCIAL INDICATORS OF THE GROUP
INCOME STATEMENT
(in millions of euros)
2024
2023
2024/
2023
Sales revenue
200.5
193.1
3.8%
Operating expenses, net
1
187.2
178.2
5.1%
EBITDA
2
13.3
14.9
(11.1%)
Normalized EBITDA
3
14.9
15.5
(4.1%)
Depreciation
7.3
7.7
(5.9%)
EBIT
4
6.0
7.2
(16.7%)
Net financial result
5
2.2
1.6
39.3%
Net profit (loss)
6.8
7.3
(6.2%)
Profit margins
6
EBITDA margin
6.6%
7.7%
(1.1 pb)
Normalized EBITDA margin
7.4%
8.0%
(0.6 pb)
EBIT margin
3.0%
3.7%
(0.7 pb)
Net profit margin
3.4%
3.8%
(0.4 pb)
Balance sheet (million euros)
31/12/2024
31/12/2023
31/12/2024/
31/12/2024
Net debt (cash)
7
(20.6)
(15.7)
30.6%
Net debt (cash) / norm. EBITDA (TTM)
8
(1.4x)
(1.0x)
(0.4x)
Capital and reserves
87.6
81.7
7.2%
Return on Average Equity (ROAE)
9
8.3%
8.9%
(0.6 pb)
Net working capital
10
23.7
23.0
3.2%
CASH FLOW (in million euros)
2024
2023
2024/
2023
Net cash flows from operating acts.
12.8
17.2
(25.3%)
Capital Expenditure (CapEx)
11
5.4
6.3
(13.9%)
Cash outlays for dividend payments
1.0
0.0
-
1 Operating expenses, net includes operating expenses less depreciation, other operating income and income from the use of own products,
goods and services; A detailed calculation is shown under Operating costs of this part of the report.
2 EBITDA (earnings before interest, taxes, depreciation and amortization) represents operating profit before depreciation; calculated as
operating income – operating expenses + depreciation.
3 Normalization implies adjustment for one-time items; a detailed calculation is presented under EBITDA normalization of this part of the
report.
4 EBIT (earnings before interest and taxes) represents operating profit; calculated as operating income – operating expenses.
5 Net financial result is calculated as financial income + share in profit of the associate (NTL) – financial expenses.
6 Profit margins are calculated on the basis of sales revenue.
7 Net debt (money) includes long-term and short-term financial liabilities minus money in the bank and cash register and deposits with banks.
Deposits with banks are included in the net debt regardless of the maturity date, as they are available on call.
8 Net debt (cash) / normalized EBITDA (TTM) reflects the Group's ability to repay financial liabilities; calculated as net debt (cash) divided
by normalised EBITDA realised in the last 12 months prior to the reporting date.
9 ROAE (return on average equity) represents the return on average equity; calculated as net profit divided by the average of capital and
reserves between the beginning and end of the year.
10 Net working capital includes inventories plus short-term receivables from customers and less short-term liabilities to suppliers and advances.
11 CapEx (capital expenditures) represents cash expenditure for the purchase of tangible and intangible fixed assets.
Note: The amounts in this section, as in the rest of the report, are rounded to one decimal place.
14
SUMMARY OF THE GROUP'S RESULTS
In 2024 the Čakovečki mlinovi Group generated EUR 200.5 million in sales revenue, EUR 14.9 million in
normalized EBITDA and EUR 6.8 million in net profit.
The Group's operations were marked by an increase in sales revenues of 3.8% or EUR 7.4 million compared
to the same period of the previous year as a result of a 4.3% increase in the revenues of the Stores segment
with an increase in the revenues of the Food segment by (0.8%).
The Retail business segment, as the largest segment of the Group, generated EUR 175.4 million or 87.5% of
the Group's sales revenue and EUR 11.3 million of normalized EBITDA or 76.0% of the Group's normalized
EBITDA.
Sales revenues of the Retail sub-segment, as the Group's largest business area, grew by 4.8% or EUR 7.7
million, or by 5.2% or EUR 7.9 million on a comparative (hereinafter: "LFL") basis.
The increase in retail sales revenues was the result of inflation-adjusted sales prices in line with increases in
the respective purchase prices of goods and a higher volume of revenues due to the implementation of active
pricing policy.
The Food business segment generated EUR 25.1 million or 12.5% of the Group's sales revenue and EUR 3.6
million of normalized EBITDA or 24.0% of the Group's normalized EBITDA. Sales revenues increased by
0.8% or EUR 0.2 million compared to the same period of the previous year.
In the Food segment, in the area of milling, following the decline in raw material prices in2023 the trend of
falling raw material prices continues during 2024 which also determines a lower level of sales prices, which,
due to significantly higher volumes of volume production and sales, results in a total lower level of realized
sales revenues by EUR 0.1 million compared to the comparative period. This decrease in revenues was
mainly offset by the bakery business unit, which recorded an increase in revenues in the amount of EUR 0.3
million compared to the comparative period.
The Group's net operating expenses increased by 5.1% or EUR 9.1 million, mainly as a result of an increase
in personnel costs (by EUR 5.0 million) and net costs of goods sold (by EUR 4.5 million). Personnel costs
of the overall trend of wage growth in the environment in which the segment operates and labor shortages,
while net costs of goods sold grew above the stated revenue growth of the Trade segment.
In 2024 the Group's normalized EBITDA decreased by (0.6) million euros, and net profit decreased by (0.4)
million euros compared to the previous year. The Group recorded a decline in the normalized EBITDA
margin to 7.4% (2023: 8.0%) and a decline in the net profit margin of 3.4% (2023: 3.8%). The Group's profit
margins were squeezed by government price control measures and rising personnel costs.
The Group's net financial result amounted to EUR 2.2 million and is higher by EUR 0.6 million compared to
the same period of the previous year, which is the result of optimal management of the cash equivalent
position.
As at 31 December 2024the Group held a net cash position of EUR 20.6 million.
15
QUARTERLY PERFORMANCE OVERVIEW OF THE GROUP
Note: Data for the fourth quarter are calculated on the basis of audited (if available) annual financial statements and unaudited quarterly
financial statements for the first, second and third quarters.
Given its coastal operations in the Trade as well as significant sales in the Food segment to customers who
also have coastal operations, the Čakovečki mlinovi Group has a characteristic seasonality of business
depending on the opportunities in Croatian tourism. Given the successful tourist season in 2024 which can
be seen through seasonal quarters and high sales revenues in them, the Group achieved extremely good
EBITDA in 2024.
35,8
47,5
58,6
40,6
37,0
50,5
62,5
43,2
41,6
51,3
63,2
44,4
0,0
10,0
20,0
30,0
40,0
50,0
60,0
70,0
Q1 Q2 Q3 Q4
Group sales revenue
2022. 2023. 2024.
(in mil. euros)
-0,4
4,3
7,6
3,1
0,5
4,2
7,9
2,3
0,0
3,1
9,0
1,2
-2,0
0,0
2,0
4,0
6,0
8,0
10,0
Q1 Q2 Q3 Q4
Group EBITDA
2022. 2023. 2024.
(in mil. euros)
16
SALES REVENUE
SALES REVENUE BY SEGMENT
(in million euros)
2024
% of sales
revenue
2023
% of sales
revenue
2024/
2023
Trade
175.4
87.5%
168.2
87.1%
4.3%
Food
25.1
12.5%
24.9
12.9%
0.8%
Consolidated sales revenue
200.5
100.0%
193.1
100.0%
3.8%
Note: The data is presented on a consolidated basis.
LFL
1
RETAIL GROWTH
(in million euros)
2024
2023
2024/
2023
Revenues from the sale of goods – Trade
174.8
167.2
4.6%
Revenues from the sale of goods - Retail
169.6
161.9
4.8%
Revenues from the sale of goods - Retail – LFL
1
160.8
152.9
5.2%
1 Like-for-like (LFL) revenues refer to stores that were operating throughout both comparative periods.
Note: The data is presented on a consolidated basis.
In 2024 the Group generated sales revenues of EUR 200.5 million, which is 3.8% or EUR 7.4 million more
than in the same period of the previous year as a result of a 4.3% increase in sales revenues in the Stores
segment, while sales revenues in the Food segment increased by 0.8%.
Sales revenues in the Trade segment amounted to EUR 175.4 million or 87.5% of the Group's sales revenues
and increased by 4.3% or EUR 7.2 million compared to the same period of the previous year. This increase
in sales revenues of the Store is the result of inflation-adjusted sales prices, positive effects of active pricing
policy, and a good tourist season in Istria and Kvarner compared to the comparable period. Revenues from
the sale of goods in Retail increased by 4.8% or 7.7 million euros, or by 5.2% or 7.9 million euros on an LFL
basis.
Sales revenues in the Food segment amounted to EUR 25.1 million or 12.5% of sales revenues and increased
by 0.8% or EUR 0.2 million compared to the same period of the previous year.
In the Food segment, in the area of milling, following the decline in raw material prices in 2023 during 2024
the price trend usual for seasonal oscillations specific to milling grains for human consumption between two
harvests stabilizes, and this determines the difference in the cost of milling raw material between the more
stable 2024 and 2023 which was very specific due to the dominant impact of the war events in Ukraine on
the grain market in the part of the region in which the segment operates. The level of selling prices during
2024 follows the aforementioned seasonal fluctuations in the price of milling raw material, which in the
second half of 2024 take on a trend of significant growth due to the lack of better-quality milled wheat on
the market. Due to the higher realized volume of production and sales, in accordance with the impacts,
everything results in a total higher level of realized sales revenues by EUR 0.2 million compared to the
comparative period, which is mostly due to the Food segment, in the bakery business area, which recorded a
revenue growth of EUR 0.3 million compared to the comparative period.
The growth of the EBITDA margin in the Food segment is the result of an active policy of purchase and sales
prices, optimization of the product range and sales channels, and optimal use of production capacities.
17
OPERATING COSTS
(million euros)
2024
% of
sales
revenue
2023
% of sales
revenue
2024/
2023
Cost of raw m., energy and production
mat., and changes in value of inventory
23.0
11.5%
25.2
13.0%
(8.8%)
Cost of goods sold, net
1
114.0
56.8%
109.5
56.7%
4.1%
Other costs
8.0
4.0%
6.7
3.4%
20.1%
Personnel costs
2
38.3
19.1%
33.3
17.3%
14.9%
Other costs
2.6
1.3%
2.6
1.3%
1.0%
Value adjustments and provisions
0.3
0.2%
0.3
0.2%
-
Other business expenses (income)
3
1.1
0.54%
0.6
0.3%
83%
Operating expenses, net
187.3
93.4%
178.2
92.3%
5.1%
1 Costs of goods sold minus revenues from subsequently approved rebates and marketing services.
2 Staff costs include net salaries, taxes and payroll contributions, salary contributions and paid non-taxable employee benefits.
3 Other operating expenses minus paid non-taxable remuneration of employees, other operating income excluding income from subsequently
approved rebates and marketing services, and income based on the use of own products, goods and services.
In 2024 the Group recorded an increase in net operating expenses of 5.1% or EUR 9.1 million compared to
the same period of the previous year. Costs of raw materials and materials were lower due to the purchase of
raw materials at lower prices in the Food segment, while the net costs of goods sold grew faster than the
growth of revenues from the sale of goods in relative terms.
In 2024 the Group invested EUR 5.0 million in increasing salaries and non-taxable receipts. Total salaries
and non-taxable receipts at the Group level amounted to EUR 38.3 million and increased by 14.9% compared
to 2023. As of December 31, 2024 the Group employed 2,287 employees (2023: 2,249), or in 2024 an average
of 2,072 employees on a work-hours basis (2023: 2,112).
EBITDA
EBITDA BY SEGMENTS
2024
2023
(in million euros)
GROUP
TRADE
FOOD
GROUP
TRADE
FOOD
Cons. sales revenues
200.5
175.4
25.1
193.1
168.2
24.9
EBITDA
13.3
10.1
3.2
14.9
12.4
2.6
EBITDA margin
6.6%
5.7%
12.6%
7.7%
7.4%
10.2%
Normalized EBITDA
1
14.9
11.3
3.6
15.5
12.6
2.9
Normaliz. EBITDA margin
7.4%
6.4%
14.2%
8.0%
7.5%
11.7%
1 Normalization implies adjustment for material one-off items; a detailed calculation is presented under EBITDA normalization of this part of
the report.
Note: The data is presented on a consolidated basis.
In 2024 the Group generated normalized EBITDA of EUR 14.9 million, which is EUR 0.6 million less than
in the same period of the previous year. Reported EBITDA was EUR 13.3 million (2023: EUR 14.9 million).
Normalized EBITDA of the Trade segment amounted to EUR 11.3 million, down by EUR 1.3 million
compared to the same period of the previous year. The normalized EBITDA margin of the Trade segment
was 6.4% (2023: 7.5%).
Normalized EBITDA of the Food segment amounted to EUR 3.6 million, up by EUR 0.7 million compared
to the same period of the previous year. The normalized EBITDA margin of the Food segment was 14.2%
(2023: 11.7%).
18
Normalized EBITDA
EBITDA NORMALIZATION
2024.
2023.
(in million euros)
GROUP
TRADE
FOOD
GROUP
TRADE
FOOD
EBITDA
13,3
10,1
3,2
14,9
12,4
2,6
Intellectual services
0,5
0,3
0,2
0,3
0,1
0,2
Bonuses under contractual
arrangements
0,6
0,4
0,2
0,5
0,3
0,2
Other one-off expenses (revenue),
net
0,5
0,5
0,0
(0,2)
(0,1)
(0,1)
Normalized EBITDA
14,9
11,3
3,6
15,5
12,6
2,9
Note: The term 'net' implies that an individual item of income is netting a comparable item of expense.
In addition to reporting on alternative (non-IFRS) business performance measures such as EBITDA, the
Group discloses the impact of one-off items in order to achieve a higher level of transparency of its normal
business activities. One-off items are those items that do not appear regularly and have a significant impact
on the result. In 2024, the Group recorded EUR 0.5 million of one-off expenses for intellectual services
related (2023: EUR 0.3 million), EUR 0.6 million of bonuses paid under contractual arrangements (2023:
EUR 0.5 million), and EUR 0.5 million of net other one-off revenues (2023: EUR -0.2 million).
NET PROFIT
In 2024 the Group generated a net profit of EUR 6.8 million, which is EUR 0.5 million less than in the same
period of the previous year.
NET DEBT
(in million euros)
31/12/2024
31/12/2023
31/12/2024/
31/12/2023
Long-term liabilities by lease
2.7
3.0
(9.2%)
Short-term liabilities on loans received
4.2
4.2
(0.2%)
Short-term liabilities by lease
1.4
1.4
(0.1%)
Days of loans, deposits and the similar
0.0
(0.6)
(92.8%)
Cash and cash equivalents
(28.8)
(23.8)
21.4%
Net debt (cash)
(20.6)
(15.8)
51.3%
As at 31 December, 2023, the Group recorded a net cash position in the amount of EUR 20.6 million
(31.12.2023: EUR 15.8 million), of which EUR 4.2 million related to credit and loan liabilities.
(31.12.2023: EUR 4.2 million), on lease liabilities EUR 4.1 million (31.12.2023: EUR 4.4 million), and on
cash and deposits given EUR 28.8 million (31.12.2023.: EUR 15.8 million). Credit and loan liabilities refer
to the related company Trgocentar d.d. in which the Group holds 52.03% of the voting rights, but
consolidates it in its entirety.
19
CASH FLOWS
In 2024 the Čakovečki mlinovi Group generated EUR 12.8 million in net cash flows from operating activities,
which is EUR 0.5 million lower than the realized EBITDA, primarily as a result of an increase in cash flows
before changes in working capital in the amount of EUR 13.9 million.
NET WORKING CAPITAL
(in million euros)
31/12/2024
31/12/2023
31/12/2024/
31/12/2023
Inventory
25.8
26.4
(2.3%)
Short-term receivables from customers
9.7
9.0
8.4%
Short-term liabilities to suppliers
(11.8)
(12.4)
(4.8%)
Net working capital
23.7
23.0
3.3%
The Group's net working capital increased by 3.3% or EUR 0.7 million, with inventories decreased by 2.3%
or EUR 0.6 million. Accounts receivable from customers increased by 8.4% or EUR 0.8 million due to
revenue growth, while short-term liabilities to suppliers decreased by 4.8% or EUR 0.6 million.
The Group's capital investments in 2024 amounted to EUR 5.4 million, lower than in the same period of the
previous year (2023: EUR 6.3 million). In the Retail segment, EUR 4.9 million was invested in the opening
of new stores and the renovation of existing ones. Capital investments in the Food segment amounted to EUR
0.5 million and relate to the purchase of vehicles for the transport of bakery products and plant and equipment
in mill and bakery production.
VALUATION OF THE ČAKOVEČKI MLINOVI GROUP
KEY INDICATORS OF CKML SHARE VALUATION
(in million euros)
31/12/2024
31/12/2023
31/12/2024/
31/12/2023
Price per share (PPS, in euros)
1
10.6
10.4
1.9%
Market capitalization
2
109.1
107.0
1.9%
EV
3
84.7
87.4
(3.1%)
EV / Sales Revenue
4
0.45x
0.48x
(0.03x)
EV / Normalized EBITDA
4
6.7x
6.6x
0.1x
Earnings per share (EPS, in euros)
5
0.7
0.7
(5.9%)
Dividend per share (DPS, in euros)
6
0.10
0.00
-
Dividend yield
7
0.9%
0.0%
-
1 The price per share (PPS) is represented by the reference price on the Zagreb Stock Exchange, i.e. the average price weighted by the amount
of traded shares as a better representative of the price given the low liquidity of the CKML share.
2 Market capitalization represents the market value of the share capital on the stock exchange; calculated as the product of the number of shares
(105,000) and the price per share.
3 EV (Enterprise Value) represents the value of a business; calculated as market capitalization + net debt (money) + minority interest.
4 Valuation indicators are calculated on the basis of fundamentals achieved in the last 12 months prior to the reporting date (TTM).
5 Earnings per share (EPS) represents net earnings per share calculated on the basis of net earnings attributable to the holders of the parent's
capital.
6 Dividends per share (DPS) is calculated as the ratio of cash outlays for the payment of dividends to the number of shares.
7 Dividend yield is calculated as the ratio of dividend per share to price per share.
20
4. OWNERSHIP STRUCTURE AND PERFORMANCE OF CKML SHARES
As of December 31, 2024 Čakovečki mlinovi d.d. had 10,290,000 approved, issued and listed ordinary shares
with no nominal value.
Top 10 shareholders as of December 31, 2024
Order.
number
Shareholder
Number of
shares
Share in share
capital
1.
MLIN I PEKARE D.O.O.
3,208,066
31.18%
2.
OTP BANKA D.D./ AZ OMF CATEGORY B
2,853,265
27.73%
3.
ERSTE & STEIERMÄRKISCHE BANK INC./
PBZ CO OMF - KATEGORIJA B
2,391,539
23.24%
4.
ZAGREBAČKA BANKA D.D./ AZ PROFIT
OPEN-END VOLUNTARY PENSION FUND
302,624
2.94%
5.
OTP BANKA D.D./ AZ MANDATORY
PENSION FUND CATEGORY A
195,403
1.90%
6.
ERSTE & STEIERMARKISCHE BANK INC./
PBZ CO OMF - KATEGORIJA A
160,732
1.56%
7.
ZAGREBAČKA BANKA INC./OMNINI
CUSTONIČKI ACCOUNT - DOMAĆA
PRAVNA
61,534
0.60%
8.
ZAGREBAČKA BANKA D.D./ AZ BENEFIT
OPEN-END VOLUNTARY PENSION FUND
(1/1)
60,858
0.59%
9.
FIMA-SECURITIES D.O.O./ NEKIĆ DANKA
46,500
0.45%
10.
OTP BANKA D.D./ OTP INDEKSNI FOND -
OIF WITH A PUBLIC OFFERING
39,656
0.39%
Ownership structure by investor group as at 31 December 2024
* For the purposes of this review, management includes members of the Management Board and the Supervisory Board and persons related to
them.
Čakovečki mlinovi d.d. has a stable ownership structure, within which the most significant share is held by
Croatian pension funds (58.59%), Mlin i Pekare d.o.o. (31.18%). As of December 31, 2024, the Company
had 345 shareholders. 68.82% of the shares were distributed to the public (free float*).
* Free float is calculated as the total number of shares minus the Company's own shares and shares held by holders holding 5% or more of the
total number of shares, excluding investment and pension funds.
Mlin i pekare
31,18%
Management and
related parties
31,18%
Croatian pension funds
58,59%
Other institutional investors
0,60%
Other shareholders
9,63%
21
Performance of the CKML share price against the CROBEX index
COMPARISON CKML vs CROBEX
31/12/2024
31/12/2023
2024/2023
CKML (in euro)
1
10.20
10.40
(1.91%)
CROBEX (in points)
3,191.15
2,533.92
25.94%
1 The price per share is represented by the average price weighted by the volume of traded shares as a better representative of the price given
the low liquidity of the CKML share.
In 2024 the price of CKML shares decreased in price by 1.91% compared to the comparable stock index
CROBEX which achieved an increase in value, of 25.94%.
-1,91%
25,94%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
31.12.2023 31.3.2024 30.6.2024 30.9.2024 31.12.2024
CKML CROBEX
22
5. SIGNIFICANT EVENTS AFTER THE END OF THE FINANCIAL YEAR
At the General Assembly of the parent company of the Group held on 15 January 2025, decisions were made
on:
- pays dividends from retained earnings
- increasing the share capital of the parent Group by investing in rights by issuing ordinary shares
- Amendments to the Statute of the parent group
- listing of the Group's parent company shares on the Official Market of the Zagreb Stock Exchange
The dividend was paid on 30 January 2025 in the amount of EUR 0.49 per share, which represented a total
amount of EUR 5,042,100.00.
By the decision of the General Assembly, the share capital of the parent company was increased by the
amount of EUR 7,605,016.93, to the amount of EUR 21,262,193.93.
A) by entering the rights - business shares held by the company MLIN I PEKARE Ltd., OIB: 22260862756,
in the
the company NewMip Ltd., OIB: 22916544397, which business shares represent 100.00% of the share capital
of NewMip Ltd., by issuing 3,804,979 new ordinary book-entry shares of the parent Group to a name without
a nominal amount;
B) by entering the rights – ordinary dematerialized shares in the name held by Mlin i Pekare d.o.o. in the
commercial
Zagrebačke pekarne Klara d.d., OIB: 76842508189 117,199 ordinary registered shares, which shares
represent 41.30% of the share capital of Zagrebačke pekarne Klara d.d., by issuing 1,291,688 new ordinary
book-entry shares of the parent company of the Group without a nominal amount;
C) by entering the rights – ordinary dematerialized shares in the name held by PLODINEC Ltd., OIB:
93116812695, in the company Zagrebačka pekarne Klara d.d.., namely 57,474 ordinary registered shares,
which shares represent 20.25% of the share capital of Zagrebačke pekarne Klara d.d., by issuing 633,333
new ordinary dematerialized shares of the parent company Klara d.d.., i.e. by issuing a total of 5,730,000
new ordinary book-entry shares of the parent company of the Group in the name without a nominal amount,
the nominal amount.
The amount for which the New Shares were issued was set at EUR 10.91 per New Share. In accordance with
the above, it was determined that the New Shares were issued for an amount that is higher than the amount
of share capital relating to each already issued share of the parent Group. At the same time, the value of rights
in the amount of EUR 54,909,283.07 was entered into the capital reserves of the parent Group, which
represented a surplus over the amount of share capital related to each already issued share of the parent
Group. Following the increase in the share capital of the parent Group, the share capital of the parent group
was divided into a total of 16,020,000 ordinary book-entry shares in a name without a nominal amount, which
are kept in the depository of the CCDC. The decision of the General Assembly determined the listing on the
Official Market of the Zagreb Stock Exchange d.d. 5,730,000 new ordinary book-entry shares of the parent
Group in a registered name without a nominal amount. The increase in the share capital of the parent Group
was carried out by the Decision of the Commercial Court in Varaždin of 31 January 2025.
With this increase in share capital, the parent company of the Group acquired 174,673 ordinary shares of the
company Zagrebačka pekarne Klara d.d.., which constitutes 61.55% of the share capital of the said company.
In accordance with the decision of the parent company's bodies and the provisions of the Act on the Takeover
of Joint Stock Companies, on 15 January 2025, Matica Group published a notice of the obligation to publish
a takeover bid for Zagrebačke pekarne Klara d.d. in the manner prescribed by law.
On 26 February 2025, the Croatian Financial Services Supervisory Agency issued a decision approving the
company Čakovečki mlinovi d.d. to publish a takeover bid for Zagrebačke pekarne Klara d.d. On 28
February, The Company published an advertisement for a takeover bid in the Official Gazette.
23
6. EXPECTED BUSINESS DEVELOPMENT IN 2025
The forecast for 2025 has a positive macroeconomic picture with a challenging combination of opportunities
and risks for entrepreneurs. The Management Board of the parent Group will continue to actively work on
further business development. In this part, the Management Board of the parent company Group will carry
out all the necessary activities announced in the Takeover Bid for Čakovečki mlinovi d.d., dated August 28,
2024 of the bidder MLIN I PEKARE Ltd., PLODINEC Ltd., ALLIANZ ZB d.o.o. and PBZ CROATIA
OSIGURANJE d.d.., all with the aim of consolidating the operations of the MIP Group and the Čakovečki
mlinovi Group with the purpose of increasing competitiveness and expanding operations in the relevant
markets, cost optimization and increase of the customer base with the planned modernization of the business.
The Group's operations in 2025 are subject to macroeconomic and economic developments in the world and
Europe, and the Group will continue with a focused approach to finding opportunities in a dynamic
environment.
As of the date of issuance of this report, the Group has a cash position sufficient for the smooth settlement
of due liabilities, and therefore prepares financial statements under the assumption of indefinite period of
operation.
General economic environment
According to CNB data, core inflation in Croatia is expected to slow down from 4.0% to 3.5% in 2025. The
slowdown in inflation in the first 8 months of 2024 is reflected in the weakening of ongoing inflationary
pressures, primarily core inflation and food price inflation. The risks of higher inflation are mainly related to
geopolitical tensions that could result in higher energy and other commodity prices.
Real GDP in Croatia for 2024 was 3.7%, and the CNB expects further growth, but at a slightly lower level
of 3.3% in 2025.
For 2025, global and regional GDP is expected to continue to grow, albeit perhaps at a slower pace than
during the post-pandemic recovery. Depending on the region, economies could stabilize, while markets in
developed countries should see moderate growth. In Croatia and Europe, the return to economic growth will
also depend on favorable international market conditions, interest rate policy and the stability of political and
trade relations. Thus, in Croatia, we have a slowdown in growth to 3.3% (3.7% in 2024).
Further GDP growth is expected through a higher contribution from exports of goods and services, assuming
a recovery in external demand, but also through a continued decline in interest rates and more favorable
financing costs. The slowdown in growth stems from slower investment growth and weakening consumer
confidence.
The impact of the war in Ukraine and Israel
The prolonged duration of the wars in Ukraine and Israel pose negative risks to global developments and
economic growth of the eurozone, which is ultimately reflected in the Croatian economy.
As of the date of this report, the Group has no relationship with, or exposure to, companies from Russia,
Belarus or Ukraine. The Group holds all business operations in Croatia, where it generates 95.7% of revenue.
The Group's external revenues relate to Slovenia, Bosnia and Herzegovina, Germany and Lithuania. Also,
the parent company Čakovečki mlinovi d.d. does not have any shareholders from Russia or Belarus, nor does
it directly or indirectly hold ownership shares in entities in these countries.
Although, there is no direct exposure to mentioned countries. The Management Board continuously considers
all risks related to external geopolitical developments and assesses that these risks do not threaten the stability
of the Group's operations.
24
Government price control measures
State price control measures have limited the prices of flour type T-550 smooth and T-400 sharp, wheat
bread, polenta instant, kaiser rolls, barley porridge from January 31, 2025, which prevents them from an
active pricing policy and indexation of costs that affect the price of the final product.
In the Trade segment, in 2025, new state measures aimed at controlling the prices of certain food products
will follow, with possible negative consequences for the volume and profitability of the Group's business.
Since January 2025, a price control measure has been in effect for 70 products in retail trade. Management
is managing the negative effects through an active pricing policy on the entire assortment and through the
adjustment of store operations on Sundays.
7. RISKS AND RISK MANAGEMENT OF THE GROUP
In its operations, the Group is exposed to the risks specified in Note 32 – Risk exposure and risk management
in the attached financial statements, which can be divided into the following groups:
- financial risks, which include: capital risk, credit risk, liquidity risk and interest rate fair value risk
- risks of regular operations, which include: market risk (interest, currency and price risk), operational
risk, industry risk, risk of procurement of raw materials and product delivery, competition risk, risk of
fluctuations in the prices of basic raw materials, risk of litigation against the Group, and risk of
liabilities or losses not covered by insurance
- general risks, which include: the risk of the business environment and the risk of changing the legal
framework.
Risk management in the Group consists of the following steps:
- Identifying potential risks in the business
- Analysis and assessment of identified risks
- Defining risk management objectives and policies
- supervision and monitoring of risk management activities
- reporting on the results of risk management.
More detailed information on risk management is presented in note 32 – Risk exposure and management.
The Group does not use financial instruments with the aim of hedging against these risks.
8. INFORMATION ON THE ACQUISITION AND RELEASE OF OWN SHARES
As of 31 December 2024, the parent company Čakovečki mlinovi d.d. did not hold its own shares, nor did it
acquire or dispose of them during 2024. Also, none of the subsidiaries of Čakovečki mlinovi d.d. held shares
in the parent company.
9. RESARCH AND DEVELOPMENT ACTIVITIES
The Čakovečki mlinovi Group is continuously working on the activities of research and development of new
products, improvement of key business processes, employee development and growth through acquisitions.
In the Stores segment, the competition is continuously monitored, and the market is researched with the aim
of developing and optimizing the range of products that meet the needs of target customers. In addition,
activities are initiated that are in the function of organic growth of sales revenues and business processes are
introduced with the aim of reducing operating costs. Also, potential acquisitions that would strategically fit
the Trade's business model are continuously monitored and analyzed.
Special emphasis is placed on the Group's tradition in the production of high-quality mill and bakery products
and oils, as well as on continuous market analysis and the development of a locally specific assortment.
In 2024 in accordance with the optimization of the bakery assortment, 9 new bakery items were introduced,
and 9 items were discontinued.
25
The Company's mill facilities were completely renovated in 2017 and are one of the most technologically
advanced plants in Croatia and the wider region with a tendency to further investments, while the bakery
plants are continuously renovated.
Except activities stated above, Group does not develop asset internally and does not perform activities of
research and development connected to asset development.
10. EMPLOYEES STRUCTURE
The Group had an average of 2,273 employees in 2024. The calculation of the average was obtained on the
basis of the actual number of workers on 1 January 2024 and quarters within 2024. An overview of the
employee structure is given in the table below.
Group
31/12/2024
Čakovečki mlinovi d.d.
207
Trgovina Krk d.d.
1,980
Radnik Opatija d.d.
86
Trgocentar d.d.
-
TOTAL
2,273
For Čakovečki mlinovi d.d.:
26
ČAKOVEČKI MLINOVI D.D.
SUSTAINABILITY REPORT
FOR THE YEAR 2024
27
CONTENTS
SUSTAINABILITY REPORT FOR THE YEAR 2024 ....................................................................................... 26
SUSTAINABILITY REPORT ............................................................................................................................. 30
ESRS 2 – General information ............................................................................................................................30
BP-2 - Announcements in special circumstances ......................................................................................31
GOV-1 The role of administrative, management and supervisory bodies ..............................................32
GOV-2 – Information Provided to Administrative, Management, and Supervisory Bodies &
Sustainability Factors Addressed ...............................................................................................................38
GOV-3 –Incorporation of Sustainability Results into Incentive Programs ............................................39
GOV–4 – Due diligence report ...................................................................................................................39
GOV–5 –Risk management and internal controls of sustainability reporting .......................................39
SBM-1 - Strategy, business model and value chain ..................................................................................40
SBM-2 - Stakeholder interests and views ..................................................................................................44
ESRS S1 - ESRS 2 SBM-2 – Stakeholder Interests and Perspectives .....................................................46
SBM-3 - Significant impacts, risks and opportunities and their interaction with the strategy and
business model .............................................................................................................................................48
IRO-1 – Description of the process for identifying and assessing significant impacts, risks and
opportunities ................................................................................................................................................56
IRO-2 – ESRS Disclosure Requirements Covered in the Corporate Sustainability Statement ............59
ČAKOVECKI MLINOVI – CONSOLIDATED DISCLOSURES IN ACCORDANCE WITH ARTICLE 8
OF THE TAXONOMY REGULATION ...........................................................................................................79
INTRODUCTION TO THE TAXONOMY REGULATION .......................................................................79
DEFINITIONS .............................................................................................................................................79
PREPARATION BASICS ............................................................................................................................80
TAXONOMICALLY ACCEPTABLE ECONOMIC ACTIVITIES ............................................................80
MINIMUM PROTECTIVE MEASURES ...................................................................................................81
KEY REVENUE INDICATOR ....................................................................................................................82
TURNOVER TEMPLATE FOR 2024. ........................................................................................................83
KEY CAPITAL INVESTMENT INDICATORS (CAPEX) .........................................................................84
CAPITAL INVESTMENT (CAPEX) TEMPLATE FOR 2024. .................................................................85
KEY OPERATING EXPENSES (OPEX) INDICATOR .............................................................................86
OPERATING EXPENSES (OPEX) TEMPLATE FOR 2024. ...................................................................87
KEY INDICATORS RECAPITULATION ..................................................................................................88
E1 Climate change ...............................................................................................................................................89
E1-1 - Transition plan for climate change mitigation ...............................................................................89
ESRS 2 SBM-3 - Significant impacts, risks and opportunities and their interaction with strategy and
business model .............................................................................................................................................89
ESRS 2 IRO-1 - Description of procedures for identifying and assessing significant impacts, risks and
opportunities associated with climate change ...........................................................................................89
E1-2 - Policies related to climate change mitigation and adaptation ......................................................89
E1-3 – Measures and resources related to climate policies ......................................................................90
E1-4 - Target values related to climate change mitigation and adaptation ............................................90
E1-5 – Energy consumption and combination of energy sources ............................................................90
28
E1-6 – Gross greenhouse gas emissions from scopes 1, 2, 3 and total greenhouse gas emissions .........93
ESRS E5 - Resource use and circular economy .................................................................................................99
E5-1 – Policies related to resource use and the circular economy ...........................................................99
E5-2 – Measures and resources related to resource use and circular economy ...................................100
E5-3 – Target values related to resource use and circular economy .....................................................100
E5-4 - Inflow of resources .........................................................................................................................100
E5-5 – Resource drain ...............................................................................................................................101
ESRS S1 Own workforce ...................................................................................................................................105
S1-1 .............................................................................................................................................................105
S1-2 – Procedures for engaging with your own workforce and worker representatives regarding
impacts ........................................................................................................................................................106
S1-3 – Procedures for remediating adverse impacts and channels through which your own workforce
can express concerns .................................................................................................................................108
S1-4 – Taking measures for significant impacts on own workforce, approaches to managing
significant risks and realizing significant opportunities related to own workforce, and the
effectiveness of these measures .................................................................................................................108
S1-5 – Target values related to managing significant negative impacts, fostering positive impacts, and
managing significant risks and opportunities .........................................................................................112
S1-6 - Characteristics of Group employees .............................................................................................113
S1-10 – Appropriate salaries.....................................................................................................................114
S1-14 – Health and safety indicators ........................................................................................................114
S1-17 - Cases, complaints and serious impacts related to human rights ..............................................114
S4 Consumers and end users ....................................................................................................................114
S4-1- Consumer and end-user policies .....................................................................................................114
S4-2 – Procedures for engaging with consumers and end users regarding impacts ............................114
S4-3 – Procedures for remediation of adverse effects and channels through which consumers and end
users can express concerns ........................................................................................................................115
S4-4 – Taking measures for significant impacts on consumers and end users, approaches to managing
significant risks and realizing significant opportunities related to consumers and end users, and the
effectiveness of these measures .................................................................................................................116
3. Management information within the sustainability report ...........................................................................117
G1-2 Supplier relationship management .................................................................................................118
G1-6 Payment practices ............................................................................................................................119
29
SUSTAINABILITY REPORT FOR 2024
ČAKOVEČKI MLINOVI D.D.
SUSTAINABILITY REPORT
FOR 2024
30
SUSTAINABILITY REPORT
ESRS 2 – General information
BP-1 – General basis for preparing sustainability reports
The Consolidated Sustainability Report for 2024 provides all stakeholders of Čakovečki mlinovi Inc.Inc.
(“Company”) and its subsidiaries (together the “Group”) with an in-depth look at its business, processes and
ways in which it manages significant impacts, risks and opportunities, its operational approach to sustainable
development, projects and initiatives that it implements as an organization with the aim of more effectively
managing its significant environmental, social and governance factors.
The Group's sustainability report for 2024 was prepared in accordance with the accounting law (OG 85/24,
145/24) and the European Sustainability Reporting Standards (ESRS) under the Corporate Sustainability
Reporting Directive (CSRD). The report also includes publications according to the Regulation on Taxonomy
(2020/852) and related delegated regulations and acts.
This report covers the companies of the Čakovečki mlinovi Group (hereinafter referred to as the “Group”):
Čakovečki mlinovi Inc. (hereinafter referred to as the “Company”) and Trgovina Krk Inc., Radnik Opatija
Inc., Trgocentar Inc..Sustainability data for the Group is reported on a consolidated basis as in the financial
statement (page 140), ensuring consistency and comprehensiveness across operations. Trgovina Krk Inc.
owns a 25% share in the company Narodni tržna lanac doo, Soblinec, which is not included in the scope of
consolidation of this report due to the minority share of ownership that does not enable control over the
company. Therefore, this company is not obliged to report individually or consolidated on sustainability in
accordance with Article 19.a paragraph 9 or Article 29.a paragraph 8 of Directive 2013/34/EU.
1
The content of this report is based on the results of the 2024 dual materiality assessment conducted in
accordance with the requirements set out in the CSRD and ESRS. This assessment identifies significant
environmental, social and governance (ESG) impacts, risks and opportunities, while also addressing the
interests of the Group’s various stakeholders. The dual materiality assessment forms the basis for prioritizing
the most important sustainability topics for disclosure.
The Sustainability Report provides key information about the Group’s operations. Due to the complexity of
collecting data throughout the value chain, it was decided to apply the transitional provisions under paragraph
133 of ESRS 1 during the first three years of sustainability reporting. These transitional provisions allow the
Group to focus on information about higher and lower levels of the value chain that is already available
within the company, such as internal and publicly available data, and eliminate the need to include
information about higher and lower levels of the value chain, other than those required by other EU
regulations listed in Appendix B of ESRS 2. As this is the first reporting year, the Group has not directly
involved stakeholders from its upstream and downstream value chains, and therefore the published policies,
measures, targets and indicators do not include information from these parts of the chain. In future periods,
it plans to collect information from the entire value chain and integrate it into its reporting. The Group has
also applied the transitional provision under ESRS 1 10.4 for certain disclosure requirements. which allows
for the phased-in disclosure requirements that are identified as material to be waived. This includes the
following disclosure requirements: E1-9 Expected financial consequences of significant physical and
transition risks and potential climate-related opportunities, E5-6 Expected financial consequences of impacts,
risks and opportunities related to resource use and the circular economy, S1-7 Characteristics of the
company's non-employed workers, S1-11 Social protection, S1-13 Training and skills development and the
1
BP; 5.a), b) i, ii
31
part of disclosure requirement S1-14 Health and safety relating to the number of days lost due to injuries and
fatalities at work and non-employed workers.
2
The Group did not use the possibility of omitting certain information related to intellectual property,
knowledge, experience or innovation results, nor information about future events or issues that are the subject
of negotiations.
3
BP-2 - Announcements in special circumstances
The Group has adopted definitions for short-term, medium-term and long-term periods, aligned with ESRS
1 6.4.
In the context of double significance, the short-term period is the same as the reporting period used by the
Group in its financial statements. The medium-term period covers the period up to five years from the end
of the short-term period. The long-term period covers any period beyond the medium-term. These definitions
have been applied to ensure consistency in sustainability disclosure and financial reporting practices, while
aligning with internal planning and decision-making frameworks.
4
Collecting data on indicators from the value chain has proven to be a challenging task with a high level of
uncertainty. Apart from the greenhouse gas (GHG) emissions data for Scope 3, the Group does not have any
other indicators from the value chain. Due to the lack of precise indicators or measurable data directly from
the value chain, the Group was not able to accurately assess the impact of these elements on its value chain.
In the medium term, the Group plans to establish systems to collect data from key stakeholders in its value
chain, including suppliers, business partners, local communities, and customers and end users, to improve
the accuracy and completeness of the data obtained from the value chain. Scope 3 greenhouse gas emissions
for categories 1 (Purchased goods and services), 2 (Capital goods), 9 (Lower-level transport) were calculated
based on an assessment using the financial consumption approach and applying appropriate factors for
calculation through financial consumption.
5
Generally accepted emission factors from databases approved by the GHG Protocol (e.g. Exiobase, DEFRA,
etc.) were used, which, based on calculations, do not create high uncertainty, also for the purposes of
calculating categories 1, 2 and 9. The cost incurred by the Group in 2024 was used, so the cost information
is not uncertain.
6
As this is the first reporting period under the European Sustainability Reporting Standards (ESRS), previous
sustainability information is not directly comparable to the current report, nor has it been subject to a limited
assurance engagement.
The Group includes in this Sustainability Report the information prescribed by Article 8 of Regulation
2020/852 (Regulation on Taxonomy). The information prescribed by the Taxonomy Regulation can be found
in the thematic part of the report related to environmental information within the sustainability report (page
79).
7
2
BP-1; 5. c)
3
BP-1; 5. d), e)
4
BP-2; 9
5
BP-2 10. a), b), c)
6
11 b, i ii
7
BP-2 15.
32
All indicators presented in this report have not been verified by an external body other than the guarantor,
unless otherwise stated.
8
GOV-1 The role of administrative, management and supervisory bodies
Corporate governance structure
9
The company is a dual-type joint-stock company and has the following bodies:
• General Assembly
• Supervisory Board
• Management
General Assembly
The General Assembly is the highest body that brings together shareholders, makes key decisions such as
appointing members of the Supervisory Board, approving financial statements and distributing profits.
10
Supervisory Board
The Supervisory Board has the authority to appoint and supervise the members of the Management Board.
He is responsible for ensuring compliance of the Company's operations with the interests of shareholders and
relevant laws.
11
The Supervisory Board consists of Krešimir Kvaternik (president, independent member, mandate suspended
from March 7, 2024), Damir Metelko (deputy president, independent member), Igor Komorski (independent
member), Vanja Kutnjak (employee representative), Josip Plodinec (member), Franjo Plodinec (member),
Mislav Ante Omazić (independent member).
Administration
The Management Board of the Company plays a key role in leading and managing business activities. Their
responsibilities are clearly defined in the company's regulations and include managing the affairs of the
Company, which includes the operational management of all business activities, the implementation of
strategic decisions and the management of day-to-day business operations. The Management Board must act
in accordance with relevant laws, the Company's statute, the rules of procedure and the decisions of the
Supervisory Board and the General Assembly. They are also responsible for implementing strategies and
business plans, achieving set goals and maintaining the reputation of the Company. The members of the
Management Board jointly manage the affairs of the Company, while each member independently manages
specific areas within their operational competence. The President of the Management Board coordinates
activities and ensures the effectiveness of the work of the Management Board. The Supervisory Board
supervises the work of the Management Board, and the General Assembly, as the highest body, makes key
decisions.
12
The Management Board consists of Mario Sedlaček, President of the Management Board,
Krešimir Kvaternik, Member of the Management Board, and Marijan Sršen, Member of the Management
Board.
13
14
Audit Committee, in addition to the tasks prescribed by Regulation (EU) No. 537/2014, and the following
tasks:
8
MDR-M 77.b)
9
GOV-1; 22.c) ii.
10
GOV-1 G1; 5. a)
11
GOV-1 G1; 5. a)
12
GOV-1 G1; 5.a)
14
GOV-1; 21. c), GOV-1 G1; 5.b)
33
- The Supervisory Board reports on the outcome of the statutory audit and explains how the statutory
audit contributed to the integrity of financial reporting and explains the role of the audit board in that
process,
- monitors the financial reporting process and submits recommendations or proposals to ensure its
integrity,
- with regard to financial reporting, monitors the effectiveness of the internal quality management
system and the risk management system and, if applicable, the internal audit, without compromising
its independence,
- monitors the performance of the statutory audit of annual financial statements and consolidated annual
financial statements,
- examines and monitors the independence of the audit firm in accordance with the Audit Act and
Regulation (EU) no. 537/2014, and in particular the suitability of providing non-audit services that are
subject to its prior approval,
- is responsible for the selection procedure of the audit firm and proposes the appointment of the audit
firm.
The composition of the Audit Committee as of December 31, 2024, is as follows: Franjo Plodinec (chairman),
Igor Komorski (deputy chairman), Damir Metelko (member), Josip Plodinec (member), Mislav Ante Omazić
(member) and Vanja Kutnjak (member).
Nominations Committee
performs the following tasks:
- supervises the process of appointment to the Supervisory Board and the Management Board to ensure
that it is fair and transparent,
- develops a description of roles and candidates for each vacant position in accordance with the profile
of the Management Board or the Supervisory Board (if necessary, in consultation with the President
of the Management Board or the Supervisory Board) and identifies and recommends suitable
candidates to the Supervisory Board,
- determines the expertise and/or independence when searching for candidates for the Supervisory
Board,
- agrees the terms of appointment with potential new members of the Management Board or Supervisory
Board, including the expected time required to perform their function,
- prepares a succession plan for the reappointment or replacement of members of the Supervisory Board
and the Management Board, in consultation with the president of the Management Board or the
Supervisory Board,
- monitors progress in achieving the target percentage of female members of the Management Board
and Supervisory Board,
- supervises the Management Board's policy in the selection and appointment of senior management.
The composition of the Nomination Committee as of December 31, 2024, is as follows: Igor Komorski
(chairman), Damir Metelko (deputy chairman), Vanja Kutnjak, Josip Plodinec (members).
34
Remuneration Committee
performs the following tasks:
- recommends to the Supervisory Board a remuneration policy for members of the Management Board
at least every three years,
- recommends to the Supervisory Board each year the remuneration that the members of the
Management Board should receive, based on an assessment of the Company's results and their
personal results,
- recommends to the Supervisory Board a remuneration policy for members of the Supervisory Board
which will be submitted to the General Assembly for approval,
- monitors the amount and structure of remuneration for senior management and employees as a whole
and makes recommendations to the Board on its policies,
- oversees the preparation and submits to the Supervisory Board for approval the legally prescribed
annual report on the receipts of the Management Board and the Supervisory Board.
The composition of the Remuneration Committee as of December 31, 2024 is as follows: Igor Komorski
(chairman), Damir Metelko (deputy chairman), Vanja Kutnjak, Franjo Plodinec (members).
Number of executive and non-executive members
15
Number
Number of executive members
7
Number of non-executive members
0
Members of administrative, management and
supervisory bodies
16
Percentage (%)
Women
4%
Men
96%
Independent members
Percentage (%)
Independent members of the Supervisory Board
17
44%
15
GOV-1, 21 a)
16
GOV-1: 21.b)
17
GOV-1: 21.e)
35
The biographies of the members of the Management Board
18
Mario Sedlaček
President of the Management Board
He graduated from the Faculty of Economics in Osijek, specializing in Financial Management. In 2012, he
completed a postgraduate program and earned the title of Master of Science. He began his career at Papuk
Inc., working in the sales sector. In 2004, he transitioned to Metalija-Trans Ltd., where he held the position
of Retail and Wholesale Manager. He further gained professional experience in renowned companies such
as Hofer KG, Mercator-H Ltd., Spar Hrvatska Ltd., and PP Orahovica, holding various leadership roles in
procurement, sales, and production, focusing on management, planning, organization, and business control.
Since 2016, he has served as the Director of Papuk Našice Ltd., a position he left in 2024 upon his
appointment as President of the Management Board of Čakovečki mlinovi Inc.. In 2024, he also assumed the
role of President of the Management Board at Agro-Čepin Ltd., a position he continues to hold.
Marijan Sršen
Member of the Management Board
He graduated from the Faculty of Economics in Zagreb, specializing in accounting.
He began his career in 2001 at Elektropromet Inc. as Head of Accounting. In 2004, he joined IHS-Revizor
Ltd. as an Auditor as an Auditor. From 2008 to 2011, he served as Finance and Accounting Director at Stipić
Grupa Ltd., after which he transitioned to the CFO position at Mlinar Pekarska Industrija Ltd.
Since 2020, he has been a Member of the Management Board of Čakovečki mlinovi Inc. Throughout his
career, he has obtained a Certified Auditor qualification issued by the Croatian Chamber of Auditors.
He currently serves as Chairman of the Supervisory Board of Trgocentar Inc., as well as Deputy Chairman
of the Supervisory Board at Trgovina Krk Inc. and Radnik Opatija Inc.
Krešimir Kvaternik
Member of the Management Board
He graduated in International Economics and Political Science from the University of California, Los
Angeles (UCLA). He later completed an MBA (Master of Business Administration) at IEDC Bled School of
Management. He began his career in 1998 at Ernst & Young Management Consultant, followed by Deloitte,
where he provided consulting services to prominent Croatian and international companies operating in
Croatia and the region. He continued his career at CEMEX, serving as Manager for Strategic Planning,
Acquisitions, and Business Development, and later as CFO at the Financial Agency (Fina), followed by STSI
Ltd. (INA Group). He then took on the role of Management Board Member for Restructuring, Sales, and
Procurement at Petrokemija. In 2015, he founded the startup Intelligent Warranty, while simultaneously
serving as Financial Director at Zagrebački Holding Ltd. In the same year, he joined HAC-ONC Ltd. as a
Management Board Member responsible for IT and Toll Collection. From 2016 to 2021, he acted as
Procurator at ADRIATIC WATCH 22 Ltd. He is currently the Director of Blochkthree Europe Ltd. and 5i
Digital Ltd. AInc.itionally, he serves as Chairman of the Supervisory Board of Radnik Opatija Inc. and
Trgovina Krk Inc., as well as a Member of the Supervisory Board of Trgocentar Inc. He held the position of
Chairman of the Supervisory Board of Čakovečki mlinovi Inc. from September from September 2023 to
March 2024, after which his status was suspended until November 2024, when he was appointed as a Member
of the Management Board of Čakovečki mlinovi Inc.
18
GOV-1; 21. c), GOV-1 G1; 5. b)
36
Biographies of Supervisory Board members
19
Damir Metelko
Chairman of the Supervisory Board
He graduated from the Faculty of Law in Zagreb.
He began his career in 1991 at Hanžeković & Radaković Ltd. as a law as a lawyer. In 2003, he became a
partner in the firm and later served as a Management Board member, a position he held until 2020. He then
continued his career at Metelko, Knežević & Partneri Ltd., where he serves as a partner and Management
Board member. He is a member of the Croatian Bar Association (HOK), the Executive Committee of HOK,
the Management Board of HOK, and the Taxation Commission of ICC Croatia.
He has been a Member of the Supervisory Board of Čakovečki mlinovi since August 2020. In September
2023, he was appointed Deputy Chairman of the Supervisory Board, and as of November 2024, he will
serve as Chairman of the Supervisory Board. Within the Supervisory Board of Čakovečki mlinovi, he acts
as an independent member.
Franjo Plodinec
Deputy Chairman of the Supervisory Board
He graduated from the Faculty of Economics in Zagreb, specializing in accounting. His career began in
2004 at Plodinec Ltd., after which he continued working at Zagrebačke Pekarne Klara Inc., first as an
advisor to the management, then as the director of the commercial sector, and since 2012 as an advisor to
the Management Board, a position he still holds today.
He is the Chairman of the Supervisory Board at Zagrebačke Pekarne Klara Inc. and Prehrana trgovina Inc.,
a member of the Supervisory Board at Papuk Našice Ltd., and the director of Coolway Ltd.
He has been a member of the Supervisory Board of Čakovečki mlinovi since August 2024 and has held the
position of Deputy Chairman of the Supervisory Board since November 2024.
Josip Plodinec
Member of the Supervisory Board
He obtained the title of Food Technician from the School of Food Technology in Zagreb. His career began
in 2002 at Plodinec Ltd., and in 2003, he became an advisor to the Management Board at Mlin i Pekare Ltd.
In 2009, he was appointed director of Prehrana i Trgovina Inc. Zagreb. After that, he returned to the position
of advisor to the Management Board at Mlin i Pekare Ltd. Sisak. He currently serves as the director of New
Mip Ltd. Sisak. He is the Chairman of the Supervisory Board at Ultra Gros Ltd., Deputy Chairman of the
Supervisory Board at Mlin i Pekare Ltd., Papuk Našice Ltd., and Zagrebačke Pekarne Klara Inc. Additionally,
he is a member of the Supervisory Board at Prehrana Trgovina Inc. He is also a Management Board member
at Agro-Čepin Ltd. and serves as director at Plo-Rent Ltd. and NewMip Ltd.
He has been a member of the Supervisory Board of Čakovečki mlinovi Inc. since August 2024.
19
GOV-1; 21. c), GOV-1 G1; 5. b)
37
Mislav Ante Omazić, Prof. Dr. Sc.
Member of the Supervisory Board
He holds a Ph.D. in economics from the Faculty of Economics in Zagreb, specializing in organization and
management. He is the author of numerous scientific and professional projects and has been a guest lecturer
at various educational institutions in Croatia and abroad.
His career began in 2008 as an assistant professor of organization and management at the Faculty of
Economics in Zagreb. In 2013, he became head of the department and an associate professor, and in 2014,
he took on the role of Vice Dean for Teaching, Students, and Quality Management. His expertise in corporate
governance and management board functions was gained through his work on the supervisory boards of the
Zagreb Stock Exchange Inc. and Hrvatska Poštanska Banka Inc., as well as serving as Chairman of the Board
of Trustees of the Institute of Economics, Zagreb. Today, he is a full professor with tenure at the Department
of Organization and Management at the Faculty of Economics in Zagreb.
He is currently the President of the Management Board of IEDC – Bled School of Management, contributing
to the development of strategic initiatives and business governance at an international level.
He has been a member of the Supervisory Board of Čakovečki mlinovi Inc. since August 2024, where he
serves as an independent member.
Vanja Kutnjak
Member of the Supervisory Board
He graduated from the Higher School of Safety, earning the title of Master of Safety and Protection
Engineering. He also attended postgraduate studies at the Faculty of Organization and Informatics in
Varaždin, specializing in Business Systems Management. His career began in 1989 at Čakovečki mlinovi
Inc. Over the years, he has received professional training in occupational safety and fire protection. His 35
years of work at Čakovečki mlinovi Inc. have been marked by experience in the maintenance, laboratory,
and technical service departments. In 2021, he assumed the role of Head of the Technical Service, overseeing
investment maintenance, fleet management, procurement, safety, and laboratory operations. He has been a
member of the Supervisory Board of Čakovečki mlinovi Inc. since March 2024.
Igor Komorski
Member of the Supervisory Board
He graduated from the Faculty of Law in Zagreb. His career began in 1997 at the Croatian Insurance Bureau
in the Guarantee Fund. In 2006, he took on a managerial role in the Green Card Department, and since 2008,
he has served as Assistant Director of the Croatian Insurance Bureau for the Guarantee Fund and the Green
Card.
He is a certified mediator (USAID) and a member of the Supervisory Board of the company Primo Real
Estate Inc. He also holds the position of director at Chepovi Ltd. and VINA JAKOB Ltd.
He has been a member of the Supervisory Board of Čakovečki mlinovi Inc. since August 2023, where he
serves as an independent member.
The members of the Management Board and the Controlling department are responsible for monitoring the
impacts, risks and opportunities related to sustainability at the highest level of management. The Head of
Controlling is responsible for the impacts, risks and opportunities and is involved in the daily monitoring,
management and supervision activities. The Management Board plays a key role in the process of managing
controls and procedures for monitoring, managing and supervising impacts, risks and opportunities. The
Supervisory and Audit Boards are informed about the impacts, risks and opportunities.
Although the Company's regulations do not prescribe responsibility for impacts, risks and opportunities
related to sustainability, the Management Board has assigned the monitoring of responsibility to the
Controlling department. Dedicated controls and procedures for managing impacts, risks and opportunities
have not yet been implemented and are under consideration.
38
The Management Board and the Supervisory Board currently do not have prescribed procedures for
managing impacts, risks and opportunities and a system of controls for impacts, risks and opportunities has
not been introduced, but this will be implemented in future periods.
20
The Management Board has or can access the expertise required to monitor sustainability factors through the
following measures:
The Controlling Department, together with the Head of Controlling, is responsible for conducting dual
materiality analysis and stakeholder engagement. The Department reports to and provides insights to the
Management Board.
The Group has organized training for working group members and senior management to prepare for new
regulatory standards, including ESRS and the Corporate Reporting Directive (CSRD)
Training of existing and new members of the Supervisory Board and the Management Board, conducted by
the company's legal department, is aimed at ensuring compliance with relevant legislative and regulatory
requirements, as well as strengthening corporate governance and business transparency. Additional training
on sustainability factors in which members of the Management Board are trained:
21
Announced legal changes and recommendations in the field of corporate governance
• Best corporate governance practices according to HANFA, ESMA and OECD recommendations
News in the field of auditing and accounting
• Responsibility of the Supervisory Board in the supervision of accounting policies and audit
procedures.
Changes in the sustainability reporting segment
• Overview of the new legal obligations of sustainability reporting in accordance with national and
EU regulations.
• Implementation of the Corporate Sustainability Reporting Directive (CSRD) and ESRS (European
Sustainability Reporting Standards).
• Integration of ESG factors into the company's strategy and risk management.
• The role of the Supervisory Board in the supervision of sustainable operations and the preparation
of non-financial reports.
GOV-2 – Information Provided to Administrative, Management, and Supervisory Bodies &
Sustainability Factors Addressed
During 2024, the Management Board was informed of the results of the dual materiality assessment. The
dual materiality analysis was led by the Controlling department, and the Management Board was regularly
informed about the process. The Management Board was also involved in the process through interviews and
validation of the materiality of impacts, risks and opportunities. In the following periods, the Group will
include significant impacts, risks and opportunities in the implementation of strategy oversight, in the risk
management process and in decisions on major transactions.
The Group will establish mechanisms for regular reporting to the Management Board and the Supervisory
Board on sustainability issues.
22
23
20
GOV-1; 22. c) i, ii, iii., 22. d)
21
ESRS 2, 23 a, b
23
GOV-2; 26. a), b), c), SBM-2; 45. d)
39
GOV-3 –Incorporation of Sustainability Results into Incentive Programs
The group did not include sustainability results in the incentive programs of administrative, management and
supervisory bodies.
24
Also, climate issues are not included in the remuneration of members of administrative,
management and supervisory bodies.
25
GOV–4 – Due diligence report
In accordance with the ESRS requirements, the Group plans to establish a detailed due diligence process for
managing sustainability issues in future periods. Given the high level of uncertainty in the value chain, the
Group used external sources for due diligence for the first reporting year. The Group included in the value
chain assessment reports from major suppliers and customers, as well as practices of similar companies in
the sector, sector-specific ESG materiality analyses from rating agencies such as MSCI, S&P Global,
Sustainalytics, and sector-specific material topics according to the SASB reporting standard. This process
identified areas for improvement that will, in accordance with Transitional Provision 10.2, be implemented
over the next two years to ensure a comprehensive due diligence process in accordance with the ESRS. The
following table shows how the Group applies the core elements of due diligence for people and the
environment and where they are presented in this sustainability report.
26
KEY ELEMENTS OF THE DUE DILIGENCE PROCEDURE
POINTS IN THE
SUSTAINABILITY
STATEMENT
a) Inclusion of the due diligence process in management, strategy
and business model
GOV-2, p. 38
GOV-3, p. 39
SBM-3, p. 48
b) Collaboration with affected stakeholders in all key steps of the
due diligence process
SBM-2, p. 44
IRO-1, p. 56
c) Identification and assessment of adverse effects
IRO-1, p. 56
SBM-3, p. 48
d) Taking measures to eliminate these negative effects
Data on measures specified in the
thematic standards.
e) Monitoring and communicating the effectiveness of these
efforts
The group has not developed
objectives for monitoring the
effectiveness of measures.
GOV–5 –Risk management and internal controls of sustainability reporting
Group has not yet established a risk register, a risk management system, or internal controls related to
sustainability reporting. However, it plans to implement them in the upcoming reporting periods.
Additionally, in the forthcoming reporting periods, the Group intends to integrate the results of risk
assessments and internal controls related to the sustainability reporting process into the relevant internal
functions and procedures, as well as periodically report to the Management Board, the Supervisory Board,
and the Audit Committee.
27
24
GOV-3, 29
25
GOV-3 E1; 13.
26
GOV-4; 30.
27
GOV-5 36.
40
SBM-1 - Strategy, business model and value chain
The Group Čakovečki mlinovi Inc. has three subsidiaries: Trgovina Krk Inc. Malinska, Trgocentar Inc.
Virovitica, and Radnik Opatija Inc. Lovran, as well as one associate company: Narodni trgovačka lanac Ltd.
Soblinec.
Founded in 1893 in Čakovec, Čakovečki mlinovi Inc. is one of the oldest Croatian food and retail companies.
The company operates a vertically integrated business model, encompassing the production of high-quality
milling, bakery, and oil products on one side and mixed goods retail on the other. While food production
remains the company's tradition and heritage, a series of successful acquisitions and integrations of retail
chains have transformed the company into a business system that today generates most of its revenue from
retail operations.
Trgovina Krk Inc. Malinska is a company with a long-standing tradition. Its mission is to provide customers
with top-quality service through recognition, accessibility, standardization, and competitiveness, while
ensuring a secure and stimulating work environment for employees.
Radnik Opatija Inc. has been in operation since 1961 and is continuously dedicated to achieving high product
quality. The company has adopted European trends in the production of frozen and partially baked bakery
and confectionery products. By continuously setting quality improvement goals, the company continues to
grow and develop while maintaining its market position as a reliable and high-quality producer of bakery and
confectionery products.
28
Čakovečki mlinovi Group generates 99.4% of its revenue from sales on the domestic market.
29
Čakovečki mlinovi Group is organized into two strategic business segments:
- Trade, which includes retail and wholesale of food and non-food products, and
- Food, which includes the production of mill and bakery products and oil.
Čakovečki mlinovi Inc. manages its business segments at a strategic level. The Retail business segment is
operationally managed by Trgovina Krk Inc., while the Food business segment is operationally managed by
Čakovečki mlinovi Inc. and Radnik Opatand Radnik Opatija Inc.
The strategic direction of the entire business is focused on top product quality and continuous investment in
cutting-edge technologies within the food industry.
The ČAKOVEČKI MLINOVI brand has been achieving significant market success both domestically and
internationally for years, as customers recognize the superior quality of our products.
The Group's business strategy – "Committed to creating superior products" – encompasses food production
with an emphasis on environmentally sustainable practices and reducing negative environmental impact, with
a desire to create retail ranges that promote the health and well-being of the community.
In addition to emphasizing product quality, management continuously cares about the satisfaction of
employees and end consumers, as well as the communities in which the Group operates, in a manner that
supports the growth of share value (the figure below shows the value of the Čakovečki mlinovi Group) and
as described later in the report.
More information about the Group's business model is available in the Consolidated Annual Report for 2024
under Management Report – 1. Core business and general information (p. 4 - 6.).
28
ESRS, SBM-1, 40 a) i
29
ESRS2, SBM-1, 40 a) ii
41
Group Values
42
The company Trgovina Krk owns three gas stations where it offers all types of fuel for passenger and
commercial vehicles, household gas, a special offer of car cosmetics, motor oils, small spare parts, batteries
and a wide range of consumer goods. They generated revenue in 2024 in the amount of 6.2 million euros.
30
The group does not operate in the sectors dealing with the production of chemicals, controversial weapons
and the cultivation and production of tobacco.
31
The focus on creating top-quality products is a vital element of the Group's business strategy, which
encompasses food production on the one hand and the development of a quality retail offering on the other.
This ensures that consumers receive reliable and high-quality products and at the same time strengthens the
Group's market credibility. Sales are mainly carried out on the domestic market through various retail and
wholesale channels.
In addition to the emphasis on product quality, management continuously cares about the satisfaction of
employees and end consumers, as well as the communities in which the Group operates, in a way that
supports the growth of shareholder value
All products and business processes are based on a management system defined by the Food Quality and
Safety Policy, from selecting the highest quality raw materials, using the most modern technologies,
developing special recipes to continuous employee education.
Sustainability factors that have been determined to be of dual significance will be considered in the
sustainability strategy and the business strategy will be further updated accordingly. The same is planned to
be aligned in the medium-term reporting period.
32
Input Data and Approach to Data Collection, Preparation, and Assurance
In 2024, the Group's main goal was to successfully implement the European Sustainability Reporting
Standards (ESRS) and align processes with their requirements. The first step was to familiarize ourselves
with the standards through training to understand all the requirements and conduct a dual materiality
assessment. During the dual materiality analysis, internal stakeholders who are experts in a particular
business segment were directly involved. Their insights were used as the basis for the assessment. After
conducting the analysis and the results of the dual materiality, an assessment of the current sustainability
status of the Group was conducted to identify gaps in relation to the ESRS requirements. Based on this, we
are working on developing a process for collecting the necessary data and ensuring data quality. For now, a
method for collecting data on GHG emissions has been established. Additionally, during 2024, data on
greenhouse gas emissions of scope 1, 2 and 3 were calculated for the first time and systems for collecting
this data were set up. Quantitative data was collected via internal information systems whenever possible,
while qualitative data was provided by department heads. The company uses data from its subsidiaries and
affiliates for information consolidation and strategic planning.
33
30
ESRS2, SBM-1 40 d) i
31
SBM-1, 40 d) ii, iii, iv
32
SBM-1 40.e), f), g)
33
SBM-1 42.a)
43
Current and Expected Benefits
The Čakovečki mlinovi Group is dedicated to improving the quality of life through its core businesses in
trade and food. Through its operations, it contributes to the local economy and ensures a stable supply of
food products, thereby strengthening its position as a reliable partner in the community. A significant part
of its revenue comes from the trade segment, which includes retail and wholesale, while the food segment
includes milling, baking and oil production. The Group supplies its products to the local population and
wholesale partners, ensuring the availability of quality products and a wide range of products.
Investors benefit from a stable business model that generates significant revenues through retail and
wholesale.
Key Resources and Value Chain Overview
The Group’s resources include a wide network of retail stores, milling facilities, bakery facilities and oil
mills, as well as employees who ensure high quality standards.
34
The Group uses modern technologies and
management systems to optimize production processes and logistics. Quality resource management enables
efficient distribution and sales of products, which contributes to customer satisfaction and sustainable growth
of the Group.
The Group’s value chain encompasses all stages from the procurement of raw materials to the distribution
of final products to end users. In the upstream part, the Group cooperates with reliable suppliers who provide
quality raw materials for production. Throughout the procurement and production process, the Group relies
on quality and safety standards to ensure the reliability of its products.
Downstream, the Group focuses on delivering value through its retail and wholesale channels, providing end
users with access to a wide range of food products. Cooperation with partners and constant communication
with customers are key to maintaining a high level of satisfaction and trust in the Group’s products. Good
relations with all stakeholders allow the Group to remain competitive and adaptable to changes in the
market.
35
Potential Impacts, Risks, and Opportunities in Key Sectors and Their Possible Relationship with the Business
Model and Value Chain
Most of the identified significant impacts, risks and opportunities are directly linked to the Group’s business
model or value chain. In the environmental domain, significant impacts are Scope 1 and 2 greenhouse gases
generated by energy consumption for the transport of goods and employees, as well as the storage of goods
in special conditions and the use of energy for office space, shops and production facilities. Also, Scope 3
greenhouse gas emissions occur within the value chain, during the production process, transport and waste
disposal. In addition, significant impacts arising from the Group’s activities include energy consumption for
heating, cooling, lighting and other needs, the generation of hazardous and non-hazardous waste and the
inflow of resources resulting from the procurement of virgin and/or non-renewable raw materials, supplies
and products.
In the social domain, the Group has identified several impacts on its own workforce related to its own
activities and the Group’s business model. These impacts include employee data privacy, adequate wages,
retail-related robberies, occupational safety, potential safety incidents, overtime, consumer complaints,
potential product contamination, and equal treatment and opportunity. In the domain of its own workforce,
the Group has identified the risk of labour shortages and employee turnover that is related to the Group's
sector and business model.
34
SBM-1; AR 14. a)
35
SBM-1; 42. c), AR 14. b)
44
Also, in relation to the effects on consumers and end users, the Group has identified an impact related to
consumer complaints and possible product contamination with an impact on product quality that are directly
linked to the business model.
In relation to governance, the Group has identified a positive impact of reduced payment terms for small
suppliers that is linked to both the value chain and the Group’s business model.
36
A full overview of all
risks, impacts and opportunities is provided on page 23.
SBM-2 - Stakeholder interests and views
Two main stakeholder groups have been identified for the purposes of dual materiality, namely affected
stakeholders and users of the sustainability report. Representatives have been identified for these stakeholder
groups and are involved in the dual materiality assessment. Of the internal stakeholders, representatives and
internal experts who have been involved through interviews are considered affected stakeholders. The
Management Board was involved in the validation phase of the materiality topics and the results were
presented to the Supervisory Board, which represents the users of the sustainability report. External
stakeholders are involved through passive engagement activities through value chain mapping, benchmark
analysis (peer companies, sector-specific materiality topics of reporting standards and rating agencies) and
through the collection of sustainability information from the Group’s largest suppliers and customers through
reports and websites, as specified in the EFRAG Guidelines for the Implementation of Materiality
Assessment.
The following table shows how the Group involves its stakeholders in the dual materiality assessment.
37
Key stakeholders
Purpose of engagement
Channels
Employees
The purpose of the engagement is to gain
insights from its own workforce on
significant impacts, risks and opportunities
that the Group will address in the coming
periods.
In the assessment of dual
significance, representatives and
internal experts were directly
involved through interviews. The
insights of internal experts and the
workforce as an affected
stakeholder shaped the impacts,
risks and opportunities that the
Group will address.
Consumers
(buyers and end
users)
Among the Group's most important
stakeholders are both customers and end
users. We distinguish between wholesale
customers (retail chains, restaurants,
bakeries, manufacturing companies) and
retail customers.
The purpose of the engagement is to adapt
products and services to the needs,
expectations and trends of consumers and
to ensure product quality and customer
trust. Also, the purpose of the engagement
in dual significance is to gain insights into
In the dual materiality assessment,
representatives and internal experts
for customer and end-user
engagement were directly involved
through interviews. In addition, the
largest wholesale customers were
also involved through passive
engagement through reviewing
sustainability information in reports
and on customers' websites.
36
SBM-1; AR 14. d)
37
SBM-2 45.a), b)
45
significant impacts, risks and opportunities
related to consumers and end users that will
shape the Group's sustainability strategy.
Shareholders
The long-term management strategy is
focused on creating greater value for the
share capital. The goal of communication
with shareholders and investors is to
provide access to information that enables
analysis of the Group's performance and
business forecasts through reporting.
This group of stakeholders is among the
users of the sustainability report.
Direct communication at the
Supervisory Board and General
Assembly and indirect
communication through investor
relations, financial statements and
other published data.
In assessing double significance, it
is planned to present the results of
double significance to the
Supervisory Board.
Suppliers
Creating and improving business
relationships tailored to the needs of
consumers and other stakeholders and
contributing to current business results and
long-term sustainable development goals.
In the dual materiality assessment,
suppliers were involved through
passive engagement – collecting
significant ESG information about
suppliers through reports and web
sites. In the dual materiality
analysis, their insights were
included to identify significant
topics, priorities and sustainability
objectives of suppliers. e
Regulatory and
public
administration
bodies
During the normal course of business, the
Group complies with legal requirements
and cooperates with competent regulatory
and other government authorities.
Regular communication and
cooperation to align with regulatory
requirements and public
administration expectations
In the assessment of double
significance, regulatory authorities
and public administration were
involved through monitoring of
laws, EU regulations and the
European Green Deal.
Community
The purpose of the engagement is to build
and maintain good relations with the
community and encourage positive
changes.
Outcomes include engagement in
socially responsible activities and
community development initiatives.
The Management Board participated in the validation of significant impacts, risks and opportunities, while
we plan to inform the Supervisory Board through a presentation of the results of the dual significance
analysis, which includes the views and interests of affected stakeholders.
38
38
SBM-2 45.d)
46
ESRS S1 - ESRS 2 SBM-2 – Stakeholder Interests and Perspectives
The Group actively considers the interests, views and rights of its workforce when shaping its strategy and
business model, thereby ensuring that employees’ human rights are respected. Key activities include regular
consultation with the trade union and workers’ representatives, enabling employees to indirectly participate
in strategic decision-making. Transparency of work is supported by accessible internal acts such as the Work
Regulations, the Organization and Systematization Regulations, and the Wage Regulations. Regular annual
employee meetings allow for direct expression of proposals and suggestions, while feedback is used to
improve the business model.
The Group continuously analyses the impact of its strategy and business model on its workforce,
implementing measures to mitigate negative effects, such as optimizing work processes and distributing
tasks in the event of increased workload. The introduction of digital internal communication via applications
improves two-way communication between management and employees, enabling transparent access to
business information. These activities contribute to reducing administrative burden and increasing employee
productivity, while maintaining a healthy work-life balance.
The Group recognizes the importance of workforce views when assessing strategy and actively involves
employees in decision-making processes. Employee suggestions and comments are monitored through
internal communication channels, and their application is evaluated when making new decisions about work
processes and work organization. In this way, the Group adapts its business model to the needs and interests
of the workforce, ensuring that the interests of employees, including respect for their human rights, are
adequately represented and integrated into the overall business strategy.
39
Considering the increase in the number of foreign workers, the Group is implementing activities to
integrate foreign workers and promote gender equality. Employee satisfaction is also sought by analysing
risks and opportunities related to working conditions, employee rights, and where and how to improve
them.
39
ESRS2, SBM-2, S1 12, AR 4
47
ESRS S4 - ESRS 2 SBM-2 – Stakeholder Interests and Perspectives
When developing the Group's business model, we pay special attention to respecting the interests, opinions
and rights of consumers and end users. In doing so, we use different tools:
• Conducting market research – Special emphasis is placed on market research to gather
information on current consumer needs, trends, and beliefs
• Attending trade fairs and various training sessions to stay informed about market
developments
• Regularly informing our consumers through various marketing channels
• Ensuring user privacy and data protection
• Utilizing social media as a communication tool
• Providing an email contact for complaints and inquiries
Dissatisfaction of customers and end consumers with the quality of products or services can have a
significant negative impact on the Group's operations. Therefore, in the Group, we pay great attention to
the satisfaction of our consumers so that there is no loss of customers, negative reviews and similar
negative consequences. Detailed in section S4.
48
SBM-3 - Significant impacts, risks and opportunities and their interaction with the strategy and business model
Table 1. Overview of significant impacts, risks and opportunities of the Čakovečki mlinovi Group
40
Location in the value chain
Time horizon
Topic
Sustainability issues and
related IROs
U/R/P
Location in
the business
model
Upstream
Own
business
Downstre
am
Short term
Medium
term
Long term
E1 Climate
change
Climate change mitigation
Greenhouse gases with
higher global warming
potential (GWP)
Negative
effect
Manufacturin
g; Retail
●
●
Scope 1 and 2 GHG
Emissions
Negative
effect
All
operations
●
●
Scope 3 GHG Emissions
Negative
effect
-
●
●
●
Energetics
Energy consumption
Negative
effect
All
operations
●
●
40
SBM-3; 48. a), c) iii., iv.
49
Location in the value chain
Time horizon
Topic
Sustainability issues and
related IROs
U/R/P
Location in
the business
model
Upstream
Own
business
Downstre
am
Short term
Medium
term
Long term
E5 Resource
use and
circular
economy
Waste
Waste
Negative
effect
All
operations
●
●
Inflows of funds, including
resource exploitation
Inflow of resources
Negative
effect
All
operations
●
●
Resource outflows associated with products and services
Location in the value chain
Time horizon
Topic
Sustainability issues and related
IROs
U/R/P
Location in
the
business
model
Upstrea
m
Own
business
Downstr
eam
Short term
Medium
term
Long term
S1 Own
workfor
ce
Other rights arising from
employment - Privacy
Privacy of employee data
Negative
effect
All
operations
●
●
Working conditions - Appropriate
salaries
Adequate wages
Negative
effect
All
operations
●
●
Working conditions - Health and
safety
Trade robberies
Negative
effect
Retail
●
●
50
Protection at work
Negative
effect
All
operations
●
●
Fires and explosions
Negative
effect
Production
●
●
Equal treatment and opportunities
for all - Training and skills
development
Equal treatment and opportunities,
including training and skills
development
Negative
effect
All
operations
●
●
Working conditions - Working
hours
Overtime
Negative
effect
Manufacturi
ng, Retail
●
●
S4
Consum
ers and
end
users
Impacts related to information for
consumers and/or end users -
Access to (quality) information
Consumer complaints
Negative
effect
All
operations
●
●
Personal safety of consumers
and/or end users - Health and
safety
Contaminated products
Negative
effect
All
operations
●
●
51
Location in the value chain
Time horizon
Topic
Sustainability issues and related
IROs
U/R/P
Location in
the
business
model
Upstream
Own
business
Downstream
Short term
Medium
term
Long
term
G1
Business
Conduct
Supplier relationship
management, including
payment
Payment deadlines to suppliers
Positive
effect
Purchase
●
●
Significant effects
41
Topic
Sustainabili
ty issues
and related
IROs
Negative/pos
itive effect
Description
Real/potential
Affected
stakehold
er
E1
Climate
change
Climate change mitigation
Greenhouse
gases with
higher
global
warming
potential
(GWP)
Negative
effect
Refrigerants used in cold storage, refrigerators and air conditioners contain
greenhouse gases with a higher global warming potential (GWP) than CO2.
Fugitive emissions of refrigerant gases are released into the atmosphere and,
given their higher global warming potential, contribute significantly to the
increase in the greenhouse gas effect.
Real
Nature
Negative
effect
For the purposes of transporting goods and employees (own fleet of cars, vans
and trucks) as well as storing goods in special conditions (respecting
temperature regimes) and using energy for office spaces, shops, and
Real
Nature
41
SMB-3; 48. b), c) i. ii., ESRS-2 SBM-3, 13 a)
52
Scope 1 and
2 GHG
Emissions
production facilities, various energy sources are used (gas, electricity,
gasoline, diesel, heating oil), which generate greenhouse gas emissions
through combustion.
Scope 3
GHG
emissions
Negative
effect
Greenhouse gas emissions created in the value chain (upstream and
downstream), and for the purposes of production of goods and services,
transport of goods and services, business trips, waste disposal, and others
(Categories according to the GHG Protocol).
Real
Nature
Energetics
Energy
consumptio
n
Negative
effect
The use of gas, electricity, gasoline, diesel for the purposes of heating,
cooling, lighting, auxiliary aggregates and starting vehicles has a significant
impact on energy consumption and greenhouse gas emissions. This results in
a negative impact on the environment, especially if measures are not applied
to reduce energy consumption and introduce energy from renewable energy
sources.
Real
Nature
Resource use and circular economy
Waste
Negative
effect
The generation of hazardous and non-hazardous waste can significantly
endanger the environment and community health. Inadequate management of
this waste can lead to the release of harmful chemicals into the environment
and overloading of landfills, further damaging the ecosystem and human
health.
Real
Nature
Inflow of
resources
Negative
effect
Procurement of original and/or non-renewable raw materials, supplies,
equipment and products (including packaging) relies on the
extraction/excavation of non-renewable resources.
Real
Nature
Other rights arising from employment - Privacy
S1 own
workfor
ce
Employee
data privacy
Negative
effect
Mishandling of workers' personal data can expose them to negative impacts
such as identity theft, financial fraud, and privacy breaches. Such data leaks
can have serious consequences for workers and their safety.
Potential
Own
workforce
Working conditions - Appropriate salaries
Appropriate
salaries
Negative
effect
Failure to ensure equal treatment and opportunity, including fair pay, can lead
to a discriminatory workplace culture and low employee morale.
Potential
Own
workforce
53
Working conditions - Health and safety
Trade
robberies
Negative
effect
Shoplifting has a serious negative impact on a company's workforce. Such
incidents not only threaten the physical safety of employees but also leave
long-term psychological consequences.
Real
Own
workforce
Protection
at work
Negative
effect
Working in different parts of the company carries specific risks to the safety
and health of workers and leads to injuries (e.g. handling machinery, ovens,
working with salt cutters, knives, slippery floors, heavy loads, pallet
deliveries, etc.). Violations of occupational health and safety policies and/or
poor working conditions result in poor health outcomes for workers, such as
work-related injuries.
Potential
Own
workforce
Fires and
explosions
Negative
effect
Fires can occur in the mill parts of production due to the release of static
electricity and the explosiveness of flour - a large potential negative effect on
the safety and health of workers.
Potential
Own
workforce
Equal treatment and opportunities for all - Training and skills development
Equal
treatment
and
opportunitie
s, including
training and
skills
developmen
t
Negative
effect
The inability to ensure equal skill development can lead to employee
dissatisfaction.
Potential
Own
workforce
Working conditions - Working hours
Overtime
Negative
effect
Workers often work overtime which can lead to fatigue, potential injuries and
general dissatisfaction due to a lack of work-life balance.
Real
Own
workforce
54
S4
Consume
rs and
end users
Consumer
complaints
Negative
effect
Dissatisfaction of customers and end consumers with the quality of the
product or service may result in complaints.
Potential
Consumer
s and end
users
Personal safety of consumers and/or end users - Health and safety
Contaminat
ed products
Negative
effect
Contamination of food products with pathogens, hazardous substances or
spoilage can lead to potential health risks for end consumers, negatively
impacting public health.
Real
Consumer
s and end
users
G1
Business
Conduct
G1 Business Conduct
Payment
deadlines to
suppliers
Positive
effect
The practice of paying in advance allows small suppliers to have better
control over costs and financial flows and ensures stability in the supply
chain.
Potential
Own
workforce
All identified impacts originate from or are linked to the Group's strategy and business model through the Group's activities. Negative impacts related to energy
consumption and emissions as well as waste generation are by-products of the Group's operations. Impacts related to the Group's own workforce are linked to the
business model through business and sector specificities such as overtime or individual cases of work-related injuries, fires and explosions or shoplifting. Impacts
related to consumers and end users are linked to the Group's business model and strategy and may arise from interactions with consumers and end users or individual
cases if there is a violation of consumer health and safety. Also, a potential positive impact in the domain of business conduct may be linked to the strategy through
enabling more favourable conditions for small suppliers.
42
42
SBM-3 48.c) ii.; S-4, 9 a), b)
55
Significant risks and opportunities
43
Topic
Sustainability issues and related IROs
Risk /
opportunity
Description
S1 Own workforce
Working conditions - Working hours
Labor shortage
Risk
Labor shortages and employee turnover can have negative
consequences for business continuity and productivity, especially
if they occur in critical departments such as warehousing and
transportation. Increased costs for hiring and training new
employees and reduced productivity can negatively impact
profitability.
During 2024, the Group identified significant impacts and risks. In future periods, the Group will develop a sustainability strategy and set sustainability-related
objectives to address these challenges, reduce negative impacts, manage risks and enhance positive impacts. As stated throughout the report, the Group is already
implementing measures related to significant impacts and risks. We do not expect the identified significant risks and opportunities to have an increased risk of adjusting
the value of assets and liabilities presented in the financial statements.
44
The Group has not analysed the resilience of its business model to identify, understand and manage significant impacts, risks and opportunities. This will be reviewed
in the future to gain insights into how the Group can respond to these challenges. During this reporting period, the Group has not conducted a resilience analysis for
other identified significant impacts and risks related to sustainability factors. The Group plans to conduct an analysis that will provide more detailed information on
impacts, risks and opportunities in the medium term.
45
In this period, the Group has identified significant impacts, risks and opportunities for the first time. All significant impacts, risks and opportunities are included in the
disclosure requirements under ESRS, which are listed in Table 1. Overview of significant impacts, risks and opportunities of the Čakovečki mlinovi Group, and there
are no significant impacts, risks and opportunities specific to the entity.
46
43
SBM.3; 48. b)
44
SBM-3 48.d)
45
SBM-3; 48. f)
46
SBM-3 48. g) h)
56
IRO-1 – Description of the process for identifying and assessing significant impacts, risks and
opportunities
In 2024, the Group conducted a dual materiality assessment in accordance with ESRS guidelines. This
process involved identifying and assessing impacts, risks and opportunities to determine the importance of
different sustainability factors.
This assessment was conducted in collaboration with internal stakeholders and passively involving external
stakeholders, covering impacts, risks and opportunities across the value chain, including upstream activities,
internal operations and downstream activities. The dual materiality assessment is the foundation for
sustainability reporting, ensuring consistency in the identification and assessment of sustainability topics that
are key to the Group and its stakeholders.
The methodology for conducting the double significance assessment is described below.
Stakeholder identification and involvement
During the dual materiality assessment, the views of the Group’s stakeholders were taken into account to
understand which topics were potentially key. Internal stakeholders, including representatives and experts
from various areas and segments of the Group, participated in interviews. External stakeholders were
involved passively, through value chain mapping and peer analysis, and by collecting information from
publicly available sources on the sustainability of the largest suppliers and customers from.
47
Identification of impacts, risks and opportunities
Based on engagement with internal stakeholders, value chain mapping, peer review and passive involvement
of external stakeholders, as well as sector analyses, a list of potentially important sustainability factors was
compiled. Resources, locations and business activities were analysed to assess actual and potential impacts
as well as risks within the Group and its value chain, including people and the environment.
48
Impact identification: Relevant impacts are identified and mapped to specific business segments, value chain
stages and affected stakeholders, in accordance with ESRS requirements.
Identification of risks and opportunities: Potential risks and opportunities are documented, including location
in the value chain and financial implications. Interdependencies between impacts and risks are considered to
consider the possibility that sustainability impacts could become financial risks or opportunities.
49
Assessment of impact significance and financial significance
After the identification of potential effects, risks and opportunities, the phase of quantification and assessment
of these elements began.
In assessing the impacts, the Group followed the materiality criteria of ESRS 1. In assessing the impacts, the
criteria of scale, scope and, in the case of adverse impacts, irreparability were applied, as well as the
probability of occurrence for potential impacts. For actual impacts, the Group did not assess probability, in
accordance with the ESRS 1 guidelines. The significance of impacts was assessed according to severity,
which includes scale, scope and irreparability (in the case of adverse impacts) and probability (in the case of
potential impacts).
50
47
IRO-1; 52. b) iii.
48
IRO-1; 53. b) i.
49
IRO-1; 53. a)
50
IRO-1 53. a).
57
In assessing risks and opportunities, the Group has included the criteria of probability and scale of financial
impact in the assessment. The analysis has considered factors that are likely to have a significant impact on
the Group's financial results, reputation or ability to achieve its strategic objectives, such as workforce
shortages and employee turnover. Financial significance: Risks and opportunities have been assessed
according to the scale and probability of financial consequences.
A scale of 1 to 5 was used to rate the severity of impacts. For potential impacts, in addition to the severity
scale, a probability scale of 1 to 4 was used. A scale of 1 to 5 was used to rate the magnitude of the potential
financial impact and the likelihood of risks and opportunities. The materiality threshold was set at 3.0 for
impact significance, as well as for financial significance, on a scale of 1 to 5. Below these materiality
thresholds, impacts, risks and opportunities are not considered significant enough to be defined as material
under section 3.2 of ESRS 1, “Significant factors and materiality of information”. The scoring was validated
by key internal stakeholders.
51
The thresholds were determined based on qualitative and quantitative criteria. Quantitative criteria were
applied when measurable data were available, such as greenhouse gas emissions. On the other hand,
qualitative criteria, such as reputational impact or importance to stakeholders, were used when quantitative
data were insufficient to assess materiality.
The dual materiality assessment provides the Group with a framework for evaluating sustainability impacts,
risks and opportunities across all business segments. This methodology enables the Group to identify and
address priority sustainability issues, aligning with stakeholder expectations and regulatory requirements,
while integrating sustainability into strategic decision-making and operational management. During the
identification process, impacts and dependencies were considered in relation to risks and opportunities. Each
impact was analysed to determine whether it could have a financial impact on the Group and, if so, was
classified as a risk. Dependencies were also assessed for each risk and opportunity.
52
Risks are assessed according to their financial impact, including those related to sustainability and other
areas. Thus, sustainability risks are considered in the context of their connection with financial risks, such as
liquidity risk, credit risk, collection risk, price risk, and macroeconomic and political risks. In the coming
period, strategies will be defined to mitigate the identified significant risks, and their progress will be
monitored over time.
53
Currently, there is no specific system for identifying and prioritizing sustainability-
related risks, nor are specialized tools used for these assessments, other than double significance analysis.
54
Once the assessment results identified significant impacts, risks and opportunities, they were reviewed with
key stakeholders to ensure that all relevant aspects were considered. The results were then presented to the
Management Board for validation. Procedures and controls have not yet been established, nor has the
integration of sustainability risks into the Group's risk management system.
55
The process of identifying, assessing and managing impacts, risks and opportunities is carried out at the
Controlling Department level, to ensure that impacts, risks and opportunities related to sustainability are
systematically incorporated into the overall risk management processes and contribute to the assessment of
the Group's overall risk profile. Training for Controlling Department employees was carried out through the
process of implementing ESRS requirements, or the requirements of the CSRD directive (Corporate
Sustainability Reporting Directive). However, the dual materiality assessment according to the European
51
IRO-1; 53. b) iv., g)
52
IRO-1; 53. c) i.
53
IRO-1; 53. e)
54
IRO-1; 53. c) ii., iii.
55
IRO-1; 53. d), e)
58
Sustainability Reporting Standards (ESRS) uses a more advanced and detailed methodology, emphasizing
the assessment from the aspect of impact materiality and financial importance.
The materiality assessment process is based on reliable input data to ensure an accurate and objective
assessment. Data sources include internal metrics such as operational reports and employee feedback, as well
as external benchmarks such as ESG scores and regulatory standards, including ESRS and EU taxonomy.
The scope of the assessment covers the value chain, including the largest producers with which the Group
cooperates, its own operations and downstream stakeholders such as customers, end users and local
communities. To ensure thoroughness, the process also integrates industry-specific standards and
benchmarks, along with assumptions such as probability and financial scale estimates, which are based on
historical data and future projections.
56
IRO-1 E1 Climate Change
During the dual materiality analysis, the Group examined in detail the impacts, risks and opportunities
associated with climate change. The Group identified and assessed actual and potential impacts on climate
change and calculated total Scope 1, 2 and 3 greenhouse gas emissions.
57
The double significance analysis resulted in significant impacts including scope 1, 2 and 3 greenhouse gases,
with a particular focus on greenhouse gases with higher global warming potential due to fugitive emissions
of refrigerant gases and energy consumption. The Group identified potential physical risks from adverse
weather conditions on transportability, temperature increases and precipitation affecting the quality and
availability of cereals, as well as transition risks associated with increased cold chain costs, rising energy
prices and power outages. Based on the assessment results, the physical risks were not assessed as significant,
as the Group believes that by diversifying its business model and sources of raw materials for production,
these risks are already mitigated. The Group also identified potential transition opportunities such as the
transition to a low-carbon economy and more sustainable transport solutions, and the transition to renewable
energy sources through diversification of sources and efficient energy management, but the opportunities
were not assessed as significant. Accordingly, no significant risks and opportunities related to climate change
were identified.
58
At higher and lower levels of the value chain, the level of impact and mitigation options for climate risks are
lower. This requires proactive engagement with other stakeholders to ensure progress in addressing climate
change in the short, medium and long term. The Group plans to conduct a resilience analysis in future periods,
including active engagement with value chain participants.
59
IRO-1 E5 Resource use and circular economy
In the process of identifying key impacts, risks and opportunities related to resource use and the circular
economy, the Group assessed its resources, with a particular focus on the main activities in milling, baking
and retail. As a result of the analysis, waste was identified as an important sub-topic for the business,
especially in the context of efficient waste management and raw material procurement. This process included
a comparative analysis of similar companies, consultations with internal experts and a review of reports from
major suppliers and customers.
60
56
IRO-1; 53. g)
57
IRO-1; 20. a, AR 9.
58
IRO-1 ESRS E1; 20. b), AR 11.; AR 12
59
IRO-1, Appendix C, ESRS E1; 20., 21., AR 13.
60
E5 IRO-1 11. a) b)
59
IRO-1 G1 Business Conduct
In the process of identifying significant impacts, risks and opportunities related to business conduct, the focus
was on the Group's business and sector as a food company. This process included a competitive analysis,
consultations with internal experts, a review of supplier reports and customer relations, along with the
specifics of transaction structures in the Croatian food sector. As a result of the assessment, a significant
positive impact of supplier relationship management, namely the practice of paying in advance to smaller
suppliers, was identified.
61
IRO-1 E2 Pollution, IRO-1 E3 Water and Marine Resources, IRO-1 E4 Biodiversity and Ecosystems
The double materiality analysis included the Group's tangible and intangible assets, locations and business
activities to assess the actual and potential impacts, risks and opportunities in its own operations and value
chain, which are related to pollution, water and marine resources, biodiversity and ecosystems, through desk
research and interviews with internal stakeholders and experts. Given the first year of the analysis and the
10.2. Transitional provision that allows a three-year period for the establishment of a process for collecting
data from the value chain, the Group did not conduct a specific stakeholder engagement for this purpose but
used previously collected information and existing processes and channels of communication with local
communities and the general public.
62
IRO-2 – ESRS Disclosure Requirements Covered in the Corporate Sustainability Statement
The Group has determined what information it should disclose about its significant impacts, risks and
opportunities, using the principles and criteria set out in section 3.2 of ESRS 1, "Significant factors and
materiality of information". The process is designed to ensure that the information disclosed accurately
reflects the Group's impact on sustainability and its exposure to risks and opportunities that could
significantly affect its business model, strategy and financial performance. The table below sets out all
significant disclosure requirements that the Group has included in this report, with the page number on which
the requirement is located.
63
According to the double significance analysis, the topics Pollution (ESRS E2), Water and Marine Resources
(ESRS E3), Biodiversity and Ecosystems (ESRS E4), Workers in the Value Chain (ESRS S2) and Affected
Communities (ESRS S3) were not identified as significant. Chapter IRO-1 Description of the process for
identifying and assessing significant impacts, risks and opportunities explains in detail the process of
identifying significant sustainability factors.
List of publication requirements fulfilled by the Group's sustainability report
Standard
Request for publication
Page number
ESRS 2
BP-1 - General basis for drawing up sustainability statements
Page 30
BP-2 – Announcements in special circumstances
Page 31
GOV-1 – The role of administrative, management and
supervisory bodies
Page 32
GOV-2 – Information provided to administrative,
management and supervisory bodies and sustainability
factors addressed by these bodies
Page 38
61
IRO-1; ESRS G1; 6.
62
IRO-1, Appendix C, ESRS E2, 11.; ESRS E3, 8.; ESRS E4, 17-19
63
IRO-2; 56th, 59th
60
GOV-3 - Inclusion of sustainability-related results in
incentive programs
Page 39
GOV-4 - Due Diligence Report
Page 39
GOV-5 – Risk management and internal controls for
sustainability reporting
Page 39
SBM-1 – Strategy, business model and value chain
Page 40
SBM-2 – Stakeholder interests and views
Page 44
SBM-3 - Significant impacts, risks and opportunities and
their interaction with the strategy and business model
Page 48
IDO-1 – Description of procedures for identifying and
assessing significant impacts, risks and opportunities
Page 56
IRO-2 – ESRS Disclosure Requirements Covered in the
Corporate Sustainability Statement
Page 59
MDR-P – Policies adopted to manage significant
sustainability factors
It is found in policy-related
publications in thematic
standards.
MDR-A – Measures and resources related to significant
sustainability factors
It is found in announcements
related to measures in thematic
standards.
MDR-M – Indicators of significant sustainability factors
It is found in the announcements
related to indicators in thematic
standards.
MDR-T - Monitoring the effectiveness of policies and
measures based on target values
It is found in the announcements
related to indicators in thematic
standards.
Standard
Request for publication
Page number
ESRS E1
ESRS 2 GOV-3 - Inclusion of sustainability results in
incentive programs
Page 39
E1-1 – Transition Plan for Climate Change Mitigation
Page 89
ESRS 2 SBM-3 - Significant impacts, risks and opportunities
and their interaction with strategy and business model
Page 89
ESRS 2 IDO –1 – Description of procedures for identifying
and assessing significant impacts, risks and opportunities
associated with climate change
Page 56
E1-2 – Policies related to climate change mitigation and
adaptation
Page 89
E1-3 – Measures and resources related to climate change
Page 90
E1-4 – Target values related to climate change mitigation
and adaptation
Page 90
E1-5 - Energy consumption and combination of energy
sources
Page 90
E1-6 – Gross greenhouse gas emissions of scopes 1,2,3 and
total greenhouse gas emissions
Page 93
ESRS E2
ESRS 2 IRO-1 - Description of the process for identifying
and assessing material impacts, risks and opportunities
associated with pollution
Page 89
61
ESRS E3
ESRS 2 IRO-1 - Description of the process of identification
and assessment of material impacts, risks and opportunities
related to water and marine resources
Page 89
ESRS E4
ESRS 2 IRO-1 - Description of the process for identifying
and assessing material impacts, risks and opportunities
associated with biodiversity and ecosystems
Page 89
Standard
Request for publication
Page number
ESRS E5
ESRS 2 IRO-1 - Description of the process of determining
and assessing the material effects, risks and opportunities
associated with the use of resources and the circular
economy
Page 89
E5-1 – Policies related to resource use and the circular
economy
Page 99
E5-2 – Measures and resources related to resource use and
circular economy
Page 99
E5-3 – Target values related to resource use and circular
economy
Page 100
E5-5 – Resource drain
Page 101
ESRS S1
ESRS 2 SBM-2 – Stakeholder Interests and Views
Page 44
SBM–3 Significant impacts, risks and opportunities and their
interaction with strategy and business model
Page 48
S1-1 – Policies related to own workforce
Page 105
S1-2 – Procedures for engaging with your own workforce
and worker representatives regarding impacts
Page 106
S1-3 – Procedures for remediating adverse impacts and
channels through which your own workforce can express
concerns
Page 108
S1-4 – Taking measures for significant impacts on own
workforce, approaches to managing significant risks and
realizing significant opportunities related to own workforce,
and the effectiveness of these measures
Page 108
S1-5 – Target values related to managing significant
negative impacts, fostering positive impacts, and managing
significant risks and opportunities
Page 112
S1-6 – Characteristics of company employees
Page 113
S1-9 – Diversity indicators
Page 113
S1-10 – Appropriate salaries
Page 113
S1-16 - Compensation indicators (wage gap and total
compensation)
Page 114
S1-17 - Cases, complaints and serious impacts related to
human rights
Page 114
Standard
Request for publication
Page number
ESRS S4
ESRS 2 SBM-2 – Stakeholder Interests and Views
Page 44
ESRS 2 SBM-3 – Significant impacts, risks and
opportunities and their interaction with strategy and business
model
Page 48
S4-1- Consumer and end-user policies
Page 114
62
S4-2 – Procedures for engaging with consumers and end
users regarding impacts
Page 114
S4-3 – Procedures for remediation of adverse effects and
channels through which consumers and end users can
express concerns
Page 115
S4-4 – Taking measures for significant impacts on
consumers and end users, approaches to managing
significant risks and realizing significant opportunities
related to consumers and end users, and the effectiveness of
these measures
Page 116
S4-5 – Targets for managing significant negative impacts,
promoting positive impacts, and managing significant risks
and opportunities
Page 116
ESRS G1
ESRS 2 GOV-1 – The role of administrative, supervisory
and management bodies
Page 32
ESRS 2 IRO-1 – Description of procedures for identifying
and assessing significant impacts, risks and opportunities
Page 56
G1-1 - Business conduct policies and corporate culture
Page 117
G1-2 Supplier relationship management
Page 118
G1-3 Preventing and detecting corruption and bribery
Page 118
G1-6 Payment practices
Page 119
63
Table Appendix B: List of data in cross-sectoral and thematic standards deriving from other EU
regulations
Publication
request and
associated data
point
Reference to
the Regulation
on publication
of information
on sustainable
financing (1)
Referral to
the third
pillar (2)
Reference to
benchmark
regulations
(3)
Reference to
the European
Climate Law
(4)
Page in your
sustainabilit
y report
Not
significant
ESRS 2 GOV-1
Gender diversity
in administration
point 21.
subpoint (d)
Indicator No.
13 from Table
1 of Annex I.
Delegated
Regulation
Commission
(EU)
2020/1816
(5), Annex II.
ESRS 2 GOV-1
Percentage of
management
board members
who are
independent item
21.
subitem (e)
Delegated
Regulation
(EU)
2020/1816,
Annex II.
ESRS 2 GOV-4
Due Diligence
Statement
point 30.
Indicator No.
10 from Table
3 of Annex I.
ESRS 2 SBM-1
Participation in
activities related
to fossil and
energy item 40.
subitem (d)
subitem i.
Indicator No. 4
from Table 1 of
Annex I.
Regulation
(EU)
no. 575/2013,
article
449.a
Implementing
regulation
Commission
(EU)
2022/2453 (
6), table 1:
Qualitative
information
about
environmenta
l risk and
table 2:
Qualitative
Delegated
Regulation
(EU)
2020/1816,
Annex II.
64
information
about
social risk
ESRS 2 SBM-1
Participation in
activities related
to the production
of chemicals
item 40.
subitem (d) ii.
Indicator No. 9
from Table 2 of
Annex I.
Delegated
Regulation
(EU)
2020/1816,
Annex II.
ESRS 2 SBM-1
Participation in
activities related
to controversial
weapons, item
40, subparagraph
(d) iii.
Indicator No.
14 from Table
1 of Annex I.
Delegated
Regulation
(EU)
2020/1818
(7),
Delegated
Regulation
(EU)
2020/1816,
Article
12(1),Annex
II.
ESRS 2 SBM-1
Participation in
activities related
to tobacco
growing and
production
point 40,
subpoint (d) iv.
Delegated
Regulation
(EU)
2020/1818,
Delegated
Regulation
(EU)
2020/1816,
Article
12(1),Annex
II.
65
ESRS E1-1
Transition plan
for
achieving
climate
neutrality until
2050.
point 14.
Regulation
(EU)
2021/1119,
Article 2(1).
ESRS E1-1
Companies
excluded from
the Paris
Agreement
benchmarks
point 16,
subpoint (g)
Article 449.a
Regulation
(EU)
no. 575/2013;
Implementing
regulation
Commission
(EU)
2022/2453,
form
1.: Book of
positions –
Transition
risk
climate
change:
Credit quality
exposures by
sector,
emissions and
the remaining
term
maturity
Delegated
Regulation
(EU)
2020/1818,
Article
12(1)(d) to
(g) and
Article 12(2).
ESRS E1-4
Greenhouse gas
emission
reduction targets,
point 34.
Indicator No. 4
from Table 2 of
Annex I.
Article 449.a
Regulation
(EU) no.
575/2013;
Implementing
regulation
Commission
(EU)
2022/2453,
form
3.: Book of
positions –
Transition
risk
climate
change:
Indicators
Delegated
Regulation
(EU)
2020/1818,
Article 6.
66
compliance
ESRS E1-5
Fossil energy
consumption
broken down by
source (only
sectors with a
significant
impact on the
climate)
point 38.
Indicator No. 5
from
Table 1 and
Indicator No. 5
from
Table 2
Annex I.
ESRS E1-5
Energy
consumption
and the
combination of
energy sources,
point 37.
Indicator No. 5
from Table 1 of
Annex I.
ESRS E1-5
Energy intensity
associated with
activities in
sectors with
significant
climate impacts
points from 40 to
43
Indicator No. 6
from Table 1 of
Annex I.
67
ESRS E1-6
Gross
greenhouse gas
emissions from
scopes 1, 2, 3
and total
greenhouse gas
emissions point
44.
Indicators No.
1 and 2 from
Table 1 of
Annex I.
Article 449a
Regulation
(EU) no.
575/2013;
Implementing
regulation
Commission
(EU)
2022/2453,
form
1.: Book of
positions –
Transition
risk
climate
change:
Credit quality
exposure by
sector,
emissions and
the remaining
term
maturity
Delegated
Regulation
(EU)
2020/1818,
Article 5(1),
Article 6 and
Article 8(1)
ESRS E1-6
Intensity of gross
emissions
greenhouse gas
point from
53. to 55.
Indicator No. 3
from Table 1 of
Annex I.
Regulation
(EU)
no. 575/2013,
article
449.a
Implementati
on
Commission
Regulation
(EU)
2022/2453,
Form 3:
Position
Book -
Transition
Risk
climate
change:
Indicators
compliance
Delegated
Regulation
(EU)
2020/1818,
Article 8(1).
ESRS E1-7
Greenhouse gas
removal and
carbon credits
point 56.
Regulation
(EU)
2021/1119,
Article 2(1).
Not
significant
68
ESRS E1-9
Exposure of the
reference
portfolio to
physical risks
related to climate
change point 66.
Delegated
Regulation
(EU)
2020/1818,
Delegated
Regulation
(EU)
2020/1816,
Annex II.
ESRS E1-9
Analysis of
monetary
amounts
by acute and
chronic
physical risk,
paragraph 66.
subparagraph (a)
ESRS E1-9
Location of
significant assets
exposed to
significant
physical
risk paragraph
66.
subparagraph (c)
Regulation
(EU)
no. 575/2013,
Article 449.a
Implementati
on
Commission
Regulation
(EU)
2022/2453,
items 46 and
47. Form 5:
Position book
–
Physical risk
Climate
change:
Exposures
that
subject to
physical
risk.
ESRS E1-9
Analysis of the
book value of the
company's real
estate according
to energy
efficiency
classes, point 67,
subpoint (c).
Regulation
(EU) No
575/2013,
Article
449a
Commission
Implementing
Regulation
(EU)
2022/2453,
point 34,
template 2:
Position book
– Climate
change
transition
risk: Loans
69
with real
estate as
collateral –
Energy
efficiency
collateral
ESRS E1-9
The degree of
portfolio
exposure to
climate change-
related events
point 69.
Delegated
Regulation
(EU)
2020/1818,
Annex II.
ESRS E2-4
The quantity of
each pollutant
listed in Annex
II of the E-PRTR
Regulation
(European
Pollutant Release
and Transfer
Register)
released into air,
water and soil,
point 28.
Annex I.
indicator
No. 8 table 1,
Annex I.
indicator No. 2
Table 2, Annex
I.
indicator No. 1
Table 2, Annex
I.
indicator No. 3
Table 2
Not
significant
ESRS E3-1
Water and
marine
resources, point
9.
Indicator No. 7
from Table 2 of
Annex I.
Not
significant
ESRS E3-1
Special policy,
point 13.
Indicator No. 8
from Table 2 of
Annex I.
Not
significant
ESRS E3-1
Sustainable
oceans and seas
point 14.
Indicator No.
12 from Table
2 of Annex I.
Not
significant
70
ESRS E3-4
Total amount of
recycled and
reused water,
point 28(c)
Indicator No.
6.2. from Table
2 of Annex I.
Not
significant
ESRS E3-4
Total water
consumption in
m3 per net
income from
own business
point 29.
Indicator No.
6.1. from Table
2 of Annex I.
Not
significant
ESRS 2- IRO 1 –
E4 point 16.
subpoint (a) sub-
subpoint i.
Indicator No. 7
from Table 1 of
Annex I.
ESRS 2- IRO 1 –
E4 point 16.
subpoint (b)
Indicator No.
10 from Table
2 of Annex I.
ESRS 2- IRO 1 –
E4 point 16.
subpoint (c)
Indicator No.
14 from Table
2 of Annex I.
ESRS E4-2
Sustainable
land/agricultural
practices or
policies point 24.
subpoint (b)
Indicator No.
11 from Table
2 of Annex I.
Not
significant
ESRS E4-2
Sustainable
practices or
policies for
oceans/seas point
24 subpoint (c)
Indicator No.
12 from Table
2 of Annex I.
Not
significant
ESRS E4-2
Policies to
resolve
problems of
deforestation,
point 24,
subpoint (d)
Indicator No.
15 from Table
2 of Annex I.
Not
significant
71
ESRS E5-5
Non-recycled
waste,
point 37.
subpoint (d)
Indicator No.
13 from Table
2 of Annex I.
ESRS E5-5
Hazardous waste
and radioactive
waste, point 39.
Indicator No. 9
from Table 1 of
Annex I.
ESRS 2 – SBM3
– S1 Risk of
forced labour,
point 14.
subpoint (f)
Indicator No.
13 from Table
3 of Annex I.
ESRS 2 – SBM3
– S1 Risk of
child labour
point 14.
subpoint (g)
Indicator No.
12 from Table
3 of Annex I.
ESRS S1-1
Commitments in
the field of
human rights
policy, point 20.
Indicator No. 9
from
Table 3 and
Indicator No.
11 from Table
1
Annex I.
ESRS S1-1
Due Diligence
Policies on
Matters Covered
fundamental
conventions of
1 to 8
International
of labour
organizations,
point 21.
Delegated
Regulation
(EU)
2020/1816,
Annex II.
ESRS S1-1
Procedures and
measures for
preventing
trafficking in
human beings,
item 22.
Indicator No.
11 from Table
3 of Annex I.
72
ESRS S1-1
Occupational
accident
prevention
policy or
management
system, point 23.
Indicator No. 1
from Table 3 of
Annex I.
ESRS S1-3
Grievance
Redress
Mechanism,
point 32.
subpoint (c)
Indicator No. 5
from Table 3 of
Annex I.
ESRS S1-14
The number of
deaths and the
number
and the rate of
accidents at
work, point 88,
subpoint (b) and
(c)
Indicator No. 2
from Table 3 of
Annex I.
Delegated
Regulation
(EU)
2020/1816,
Annex II.
ESRS S1-14
Number of days
lost due to
injuries,
accidents,
fatalities or
illnesses point
88. subpoint (e)
Indicator No. 3
from Table 3 of
Annex I.
ESRS S1-16
Unadjusted
gender pay gap
paragraph 97,
point (a)
Indicator No.
12 from Table
1 of Annex I.
Delegated
Regulation
(EU)
2020/1816,
Annex II.
Not
significant
ESRS S1-16
Excessive
difference in
salary between
director and
employee, point
97, subpoint (b)
Indicator No. 8
from Table 3 of
Annex I.
Not
significant
73
ESRS S1-17
Discrimination
Cases,
point 103,
subpoint(a)
Indicator No. 7
from Table 3 of
Annex I.
ESRS S1-17
Non-compliance
with
UN Guiding
Principles on
Business and
Human Rights
and OECD
Guidelines
point 104(a)
Indicator No.
10 from
Table 1 and
Indicator No.
14 from Table
3
Annex I.
Delegated
Regulation
(EU)
2020/1816,
Delegated
Regulation
(EU)
2020/1818,
Annex II,
Article 12,
paragraph 1.
ESRS 2 – SBM3
– S2
High risk of
child labour or
forced labour in
the value chain,
point 11. (b)
Indicators No.
12 and 13
from Table 3 of
Annex I.
Not
significant
ESRS S2-1
Commitments in
the field of
human rights
policy, point 17.
Indicator No. 9
from
Table 3 and
Indicator No.
11 from Table
1
Annex I.
Not
significant
ESRS S2-1
Policies relating
to workers in the
value chain
point18.
Indicators No.
11 and 4 from
Table 3 of
Annex I.
Not
significant
ESRS S2-1
Non-compliance
with the
UN Guiding
Principles on
Business and
Human Rights
and the OECD
Guidelines
point 19.
Indicator No.
10 from Table
1 of Annex I.
Delegated
Regulation
(EU)
2020/1816,
Delegated
Regulation
(EU)
2020/1818,
Annex II,
Article 12,
Not
significant
74
paragraph 1.
ESRS S2-1
Due Diligence
Policies on
Matters Covered
Basic
conventions of
1 to 8
International
of labour
organizations,
point 19.
Delegated
Regulation
(EU)
2020/1816,
Annex II.
Not
significant
ESRS S2-4
Human rights
issues and
incidents related
to higher and
lower levels of
the value chain
item 36.
Indicator No.
14 from Table
3 of Annex I.
Not
significant
ESRS S3-1
Commitments in
the field of
human rights
policy,
point 16.
Indicator No. 9
from Table 3 of
Annex I and
Indicator No.
11 from Table
1 of Annex I
Not
significant
ESRS S3-1
Non-compliance
with the UN
Guiding
Principles on
Business and
Human Rights,
ILO Principles
and OECD
Guidelines, point
17.
Indicator No.
10 from Table
1 of Annex I.
Delegated
Regulation
(EU)
2020/1816,
Delegated
Regulation
(EU)
2020/1818,
Annex II,
Article 12,
paragraph 1.
Not
significant
ESRS S3-4
Human rights
issues and
Indicator No.
14 from Table
3 of Annex I.
Not
significant
75
incidents, item
36.
ESRS S4-1
Policies related
to consumers and
final
users, point 16.
Indicator No. 9
from
Table 3 and
Indicator No.
11 from Table
1
Annex I.
ESRS S4-1
Non-compliance
with the UN
Guiding
Principles on
Business and
Human Rights
and OECD
Guidelines, point
17.
Indicator No.
10 from Table
1 of Annex I.
Delegated
Regulation
(EU)
2020/1816,
Delegated
Regulation
(EU)
2020/1818,
Annex II,
Article 12,
paragraph 1.
ESRS S4-4
Human rights
issues and
incidents, item
35.
Indicator No.
14 from Table
3 of Annex I.
ESRS G1-1
United
Convention
of the people
against
corruption, item
10, sub-item (b)
Indicator No.
15 from Table
3 of Annex I.
ESRS G1-1
Whistleblower
Protection
Section 10.
Subsection (d)
Indicator No. 6
from Table 3 of
Annex I.
ESRS G1-4
Fines for
violation of anti-
corruption and
bribery
Indicator No.
17 from Table
3 of Annex I.
Delegated
Regulation
Commission
(EU)
2020/1816,
Annex II.
Not
significant
76
regulations, item
24, sub-item (a)
ESRS G1-4
Suppression
standards
corruption and
bribery
point 24.
Subpoint (b)
Indicator No.
16 from Table
3 of Annex I.
Not
significant
(1) Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on
sustainability-related disclosures in the financial services sector (OJ L 317, 9.12.2019, p. 1).
(2) Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on
prudential requirements for credit institutions and investment firms and amending Regulation (EU) No
648/2012 (Capital Requirements Regulation or CRR) (OJ L 176, 27.6.2013, p. 1).
(3) Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices
used as benchmarks in financial instruments and financial contracts or to measure the performance of
investment funds and amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU) No 596/2014
(OJ L 171, 29.6.2016, p. 1).
(4) Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing
a framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU)
2018/1999 (‘European Climate Law’) (OJ L 243, 9.7.2021, p. 1).
(5) Commission Delegated Regulation (EU) 2020/1816 of 17 July 2020 amending Regulation (EU)
2016/1011 of the European Parliament and of the Council with regard to the explanation in the benchmark
statement on how environmental, social and governance factors are taken into account in each provided and
published benchmark values (OJ L 406, 3.12.2020, p. 1).
(6) Commission Implementing Regulation (EU) 2022/2453 of 30 November 2022 amending implementing
technical standards laid down in Implementing Regulation (EU) 2021/637 with regard to disclosure of
environmental, social and governance risks (OJ L 324, 19.12.2022, p. 1).
(7) Commission Delegated Regulation (EU) 2020/1818 of 17 July 2020 supplementing Regulation (EU)
2016/1011 of the European Parliament and of the Council with regard to minimum standards for EU climate
transition benchmarks and EU Paris-aligned benchmarks (OJ L 406, 3.12.2020, p. 17).
77
1. Environmental information within the sustainability report
Publication in accordance with Article 8 Regulation 2020/852 (EU Taxonomy Regulation)
The Čakovečki mlinovi Group actively works on the sustainable and responsible management of production
and sales locations, processes and technologies that have an impact on the environment and ensures their
compliance with laws and regulations.
The Group is committed to transparency regarding its environmentally sustainable activities and investments
in accordance with Regulation (EU) 2020/852 on taxonomy. Based on the requirements of Article 8 of this
Regulation, we provide the following information:
1. Description of environmentally sustainable activities
Our business includes various economic activities that meet the technical criteria for environmental
sustainability according to the EU taxonomy. Activities that are aligned with environmental objectives
include:
• Renewable energy production (solar panels)
• Energy efficiency in industrial processes
• Sustainable agriculture and biodiversity conservation practices
• Services and products that support the circular economy (recycling, reuse).
2. Environmental sustainability criteria
All our economic undertakings that are covered by the EU taxonomy must meet specific conditions,
including:
• Reducing greenhouse gas emissions and complying with CO₂ emission reduction targets under the
Paris Agreement.
• Preserving biodiversity and minimizing negative impacts on nature.
• Efficient use of resources, including water and energy, and waste reduction.
3. Percentage of environmentally sustainable activities
According to the latest calculation according to the EU taxonomy criteria for 2024, the following
taxonomically acceptable amounts are: 0.32% of revenue, 54.55% of total CapEx and 86.39% of OpEx.
4. Transfer of environmental risks
We continuously monitor and manage environmental risks associated with our operations, including risks
related to climate change, biodiversity loss and other environmental threats. Our processes include regular
risk assessments and strategies to reduce negative environmental impacts.
5. Measures taken to comply with the taxonomy
To ensure full compliance with the EU taxonomy, we have implemented the following measures:
• Sustainability is integrated into our business strategy.
• Training employees to understand and apply ecological taxonomy criteria.
Activities are subject to regular audits to ensure compliance with new legislation and environmental
objectives.
The Group's environmental protection policy includes:
- drafting new and updating existing general acts (rulebooks, plans, decisions) in the field of
environmental protection
78
- supervision of the implementation of waste management regulations, identification and elimination of
identified deficiencies
- training of workers involved in temporary waste disposal in containers
- organization of timely waste removal, and handing it over exclusively to legal entities authorized for
disposal by the Ministry of Economy and Sustainable Development
- preparation and management of waste data (waste tracking sheets, waste generation records),
preparation of waste management plans, and submission to competent state bodies
- organization and monitoring of deadlines for measuring emissions from stationary sources (boilers,
bakery ovens, dryers, etc.), wastewater sampling in accordance with water permits, and permeability
testing of cooling and air conditioning equipment and devices at an authorized legal entity
- submission of annual emissions reports and preparation of emission calculations
- daily monitoring of amendments to legislation, professional literature, attending seminars.
The Group's emissions and energy consumption monitoring system enables quality analysis and
improvements in terms of their reduction. Emissions are additionally compared with the prescribed emission
limit values in accordance with the Regulation on limit values for emissions of pollutants into the air from
stationary sources (Official Gazette 42/2021).
The Group has prepared the tables in accordance with the obligation to publish the Report. The approach to
calculating the Group's indicators is at the individual company level, with the same approach as in the
consolidation of financial statements.
The aim of the publication is to ensure the transparency of operations and investments, and to inform the
market, investors and all interested parties about the environmentally sustainable economic activities of the
Group.
79
ČAKOVECKI MLINOVI – CONSOLIDATED DISCLOSURES IN ACCORDANCE WITH
ARTICLE 8 OF THE TAXONOMY REGULATION
INTRODUCTION TO THE TAXONOMY REGULATION
With the adoption of the European Green Deal, the European Union set a net-zero energy goal by 2050. In
line with this, the European Commission has developed a comprehensive sustainable financing programme
to ensure that the set targets are met. One of the key pillars for encouraging investment in sustainable projects
is the Taxonomy Regulation (EU) 2020/852.
The Taxonomy Regulation (EU) 2020/852 established a framework to facilitate sustainable investment and
sets out comprehensive conditions that an economic activity must meet in order to qualify as environmentally
sustainable.
This Regulation requires companies to disclose the proportion of their activities that are taxonomically
acceptable and taxonomically compliant.
DEFINITIONS
An activity is considered eligible under the Taxonomy if it makes a significant contribution to at least one of
the following environmental protection objectives defined in Article 9 of the Taxonomy Regulation:
1. climate change mitigation,
2. adaptation to climate change,
3. sustainable use and protection of water and marine resources,
4. transition to a circular economy,
5. pollution prevention and control,
6. protection and restoration of biodiversity and ecosystems,
Activities aligned with the Taxonomy, on the other hand, in addition to being acceptable, must also comply
with additional criteria that classify them as environmentally sustainable:
- the activity must comply with the significant contribution criteria established for each of the
environmental objectives of the EU Taxonomy
- the activity must not cause significant harm to any other EU ecological objective Taxonomy
- The activity must be carried out in accordance with minimum safeguards, ensuring compliance with
the Organisation for Economic Co-operation and Development (OECD) Guidelines for
Multinational Enterprises and the United Nations (UN) Guiding Principles on Business and Human
Rights. The activity should also be in line with the principles and rights set out in the eight core
conventions set out in the International Labour Organization (ILO) Declaration on Fundamental
Principles and Rights at Work and the International Bill of Human Rights.
A taxonomically unacceptable economic activity is any economic activity that is not described in the
delegated acts supplementing the Taxonomy Regulation.
For the 2024 business year, the EU Taxonomy focuses on compliance with climate change issues (the first
two objectives) and eligibility for the other four environmental objectives for the activities described in the
Delegated Act of the Taxonomy Regulation.
80
PREPARATION BASICS
This report assesses the eligibility and, where applicable, compliance of the economic activities of the
Čakovečki mlinovi Group for the financial year 2024, based on the Taxonomy Regulation and its related
legislative acts (Delegated Acts) described below, as well as any additional guidance published since their
adoption:
- Delegated act on climate (2021/2139)– establishes technical screening criteria (TSC) for
determining the qualification conditions under which an economic activity contributes significantly
to climate change mitigation (Annex 1) or climate change adaptation (Annex 2), and for determining
that that economic activity does not cause significant harm (DNSH) to any of the other
environmental objectives
- Delegated act on publications (2178/2021) - Determines the content and presentation of
information to be published in connection with ecologically sustainable economic activities and
specifies the methodology for carrying out this assessment
- Delegated Act of the Regulation on Taxonomy(2023/2486) - Establishes technical screening
criteria for determining the conditions under which an economic activity qualifies as one that
significantly contributes to the sustainable use and protection of water and marine resources, the
transition to a circular economy, the prevention and control of pollution or the protection and
restoration of biodiversity and ecosystems, and for determining whether that economic activity
causes significant harm to any of the other environmental objectives and amending Commission
Delegated Regulation (EU) 2021/2178 as regards specific public notices for those economic
activities.
The analysis of economic activities includes the entire portfolio of the Čakovečki mlinovi Group. By
implementing four new environmental targets for fiscal year 2024 and amending existing targets, it is
expected that the scope of business activities and taxonomic acceptability of the Čakovečki mlinovi Group
will be increased.
For details and templates, see the “Key Performance Indicators” section below.
TAXONOMICALLY ACCEPTABLE ECONOMIC ACTIVITIES
Section 1.2.2.1 (a) of Annex I to the Delegated Act on Publications
The Čakovečki mlinovi Group generates most of its revenue from retail and wholesale of food and non-food
products. The above income-generating activities are not acceptable according to the EU Taxonomy.
The Čakovečki mlinovi Group has reviewed all economic activities that meet the requirements of the
Taxonomy set out in the Climate Delegated Act and the Taxonomy Regulation Delegated Act based on
expenditure and investment. They have been identified acceptable share of revenue, capital expenditures
(CapEx) and operating expenses (OpEx)which can be identified with the so-called output procurement (in
accordance with Commission Delegated Regulation (EU) 2021/2178). Activities from the following areas
are eligible within revenue, CapEx and OpEx: transport, construction and real estate activities, water supply,
wastewater disposal, waste management and environmental remediation, the table Taxonomically eligible
economic activities of the Čakovečki mlinovi Group is shown below.
In 2024, taxonomically acceptable is: 0.32% of revenue, 54.55% of total CapEx, and 86.39% of OpEx.
81
The table below shows the environmental objective for which activities qualify as eligible. By analysing the
technical criteria for each eligible activity, the Group concluded that it does not meet the compliance criteria
according to the EU Taxonomy. The templates also provide a clear indication of which environmental
objective a particular activity is aiming for.
Taxonomically acceptable economic activities of the Čakovečki mlinovi Group
Sector
Eligible activity
Environmental
goal
Construction activities
and Real estate
business
3.2. Renovation of existing buildings
CCM
CCC
CE
3.3. Demolition and demolition of buildings and other
structures
CE
7.3. Installation, maintenance and repair of energy efficiency
equipment
CCM
CCC
7.5. Installation, maintenance and repair of instruments and
devices for measuring, regulating and controlling the energy
efficiency of buildings
CCM
CCC
7.7. Purchase of buildings and ownership of buildings
CCM
CCC
Water supply;
wastewater disposal,
waste management
and environmental
remediation
5.1. Construction, expansion and operation of water
collection, purification and supply systems
CCM
CCC
Transport
6.5. Transportation by motorcycles, cars and commercial
vehicles
CCM
CCC
6.6. Road freight transport services
CCM
CCC
CCM: Climate Change Mitigation
CCA: Climate Change Adaptation
WTR: Sustainable use and protection of water and marine resources
CE: Transition to a circular economy
PPC: Pollution Prevention and Control
BIO: Protection and restoration of biodiversity and ecosystems
MINIMUM PROTECTIVE MEASURES
Article 18 of the Taxonomy Regulation
Minimum protective measures are the basis for compliance with the EU Taxonomy, in accordance with
Article 18 of the Regulation. They include all procedures implemented to ensure that economic activities are
carried out in accordance with:
- OECD Guidelines for Multinational Enterprises (OECD MNE Guidelines)
- The UN Guiding Principles on Business and Human Rights (UNGPs), including the principles and
rights set forth in the eight core conventions identified in the International Labor Organization's
Declaration on Fundamental Principles and Rights at Work
- The International Bill of Human Rights.
82
The minimum safeguards cover four topics: human rights (including labour and consumer rights), corruption
and bribery, taxation, and fair competition.
KEY PERFORMANCE INDICATORS
Section 1.2.1(a), (b) and Section 1.2.2.1(c) of Annex I to the Delegated Act on Publications
Key performance indicators include indicators of revenue (Turnover), capital expenditure (CapEx) and
operating expenditure (OpEx). The templates set out in Annex II of the Delegated Act of the Taxonomy
Regulation shall be used to present the key indicators of the Taxonomy.
Since the Čakovečki mlinovi Group does not perform any activities related to natural gas and nuclear energy
(activities 4.26 - 4.31), the dedicated templates introduced by the Supplementary Delegated Act for activities
in individual energy sectors are not used.
Only capital expenditure and operating expenditure can qualify as eligible for the Taxonomy, or capital
expenditure/operating expenditure related to the procurement of outputs from economic activities eligible for
the Taxonomy and individual measures that enable the targeted activities (non-eligible activities of the
Čakovečki mlinovi Group) to become low-carbon or lead to greenhouse gas reductions (Section 1.1.2.2.(c)
of Annex I to the Delegated Act on Publications).
KEY REVENUE INDICATOR
Definition
Section 1.2.1(a), (b) of Annex I to the Delegated Act on Publications
The key revenue indicator is defined as net revenue derived from taxonomically acceptable and
taxonomically compliant economic activities (numerator) divided by net revenue (denominator).
The denominator of the Key Income Indicator is based on consolidated revenue recognized in accordance
with paragraph 82(a) of IAS 1. Additional details on accounting policies related to consolidated revenue can
be found within the Consolidated Annual Report of the Čakovečki mlinovi Group for 2024, p. 151 and 152.
All income-generating activities that occurred in 2024 were analysed in accordance with the Taxonomy
Regulation and eligible income was identified under the EU Taxonomy on an individual basis. This approach
sought to ensure that each capital amount was counted only once.
Section 1.2.1 (second subparagraph) of Annex I to the Delegated Act on publications
Consolidated net income can be reconciled to the consolidated financial statements, Income Statement within
the Consolidated Annual Report of the Čakovečki mlinovi Group for 2024, p. 169 (“<<Operating
income>>”).
83
TURNOVER TEMPLATE FOR 2024.
Financial year 2024
Economic activities
Code
Turnov
er
Proportion of
Turnover
Climate
Change
Mitigation
Climate
Change
Adaption
Water Pollution
Circular
Economy
Biodiversity
Climate
Change
Mitigation
Climate
Change
Adaption
Water Pollution
Circular
Economy
Biodiversity
Minimum
Safeguards
Taxonom y aligned
proportion (A.1.) or
eligible (A.2.)
Turnover, 2023
Category -
enabling
activity
Category -
transitional
activity
Text m€ %
Y; N; N/EL (b)
(c)
Y; N; N/EL (b)
(c)
Y; N; N/EL (b)
(c)
Y; N; N/EL (b)
(c)
Y; N; N/EL (b)
(c)
Y; N; N/EL (b)
(c)
Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A.1. Turnover of environm entally sustainable activities (Taxonom y-aligned)
- 0,00 0,00%
N/EL N/EL N/EL N/EL N/EL N/EL N N N N N N N
0,00% - -
Turnover of environmentally sustainable activities (Taxonomy-
aligned) (A.1)
0,00 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% N N N N N N N 0,00% - -
Proportion of enabling 0,00 0,00%
Proportion of transitional 0,00 0,00%
A.2. Taxonom y-Eligible but not environm entally sustainable
activities (not Taxonom y-aligned)
EL; N/EL (f) EL; N/EL (f) EL; N/EL (f) EL; N/EL (f) EL; N/EL (f) EL; N/EL (f)
Acquisition and ow nership of buildings
CCM 7.7 / CCA 7.7
0,66 0,32%
EL EL N/EL N/EL N/EL N/EL
0,19%
Turnover of Taxonom y-eligible but not environm entally
sustainable activities (not Taxonomy-aligned activities) (A.2)
0,66 0,32% 0,32% 0,00% 0,00% 0,00% 0,00% 0,00% N 0,19%
A. Turnover from eligible activities (A.1 + A.2) 0,66 0,32% 0,32% 0,00% 0,00% 0,00% 0,00% 0,00% 0,19%
Turnover of Taxonom y-non-eligible activities (B) 206,46 99,68%
TOTAL 207,12 100,00%
2024
Substantial Contribution Criteria
DNSH criteria ("Does Not Significantly Harm")
A. TAXONOMY-ELIGIBLE ACTIVITIES
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
84
KEY CAPITAL INVESTMENT INDICATORS (CAPEX)
Section 1.2.1 (a), (b) of the Annex and the Delegated Act on Publications
The key indicator CapEx is defined as taxonomically acceptable and taxonomically aligned capital
investments (numerator) divided by total capital investments (denominator).
Total capital investment consists of increases in property, plant and equipment (IAS 16) and intangible fixed
assets (IAS 38) including right-of-use assets (IFRS 16) during the financial year, before depreciation and any
remeasurements, including those resulting from revaluations and impairments. Additional information is
presented on pages 173 and 174. Additions resulting from business combinations are also included. Goodwill
is not included in capital investments because it is not defined as an intangible asset in accordance with IAS
38. Additional details on accounting policies related to capital investments can be found in the Consolidated
Annual Report of Čakovečki Mlinovi Group for 2024, page 153.
All types of capital investments that took place in 2024 in accordance with the Regulation on Taxonomy
were analysed and investments related to defined economic activities eligible for the Taxonomy were
identified on an individual basis. This approach sought to ensure that each capital amount was counted only
once.
Section 1.2.1 (second subparagraph) of the Annex and the Delegated Act on publications
Total capital investments can be reconciled with the consolidated financial statements, consolidated annual
report Čakovec Mills Group for 2024, p. 174. to 176. (“<<table of changes in intangible assets, in right-of-
use assets, and in real estate, plant and equipment and equipment>>”).
They are the sum of the following types of movements (acquisition and production costs):
- Accessories and
- Additions from business combinations
for intangible assets, right-of-use assets and property, plant and equipment.
85
CAPITAL INVESTMENT (CAPEX) TEMPLATE FOR 2024.
Financial year 2024
Economic activities Code
CapEx
Proportion of
CapEX
Climate
Change
Mitigation
Climate
Change
Adaption
Water Pollution
Circular
Economy
Biodiversity
Climate
Change
Mitigation
Climate
Change
Adaption
Water Pollution
Circular
Economy
Biodiversity
Minimum
Safeguards
Taxonom y aligned
proportion (A.1.) or
eligible (A.2.) CapEx,
2023
Category -
enabling
activity
Category -
transitional
activity
Text m€ %
Y; N; N/EL (b)
(c)
Y; N; N/EL (b)
(c)
Y; N; N/EL (b)
(c)
Y; N; N/EL (b)
(c)
Y; N; N/EL (b)
(c)
Y; N; N/EL (b)
(c)
Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
- 0,00 0,00%
N/EL N/EL N/EL N/EL N/EL N/EL N N N N N N N
0% - -
CapEx of environm entally sustainable activities (Taxonomy-
aligned) (A.1)
0,00 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% N N N N N N N 0% - -
Proportion of enabling 0,00 0,00%
Proportion of transitional 0,00 0,00%
A.2. Taxonom y-Eligible but not environmentally sustainable
activities (not Taxonom y-aligned)
EL; N/EL (f) EL; N/EL (f) EL; N/EL (f) EL; N/EL (f) EL; N/EL (f) EL; N/EL (f)
Renovation of existing buildings CE 3.2 0,11 1,20%
N/EL N/EL N/EL N/EL EL N/EL
2,03%
Demolition and w recking of buildings and other structures CE 3.3 0,00 0,00%
N/EL N/EL N/EL N/EL EL N/EL
0,19%
Construction, extension and operation of w ater collection, treatment
and supply systems
CCM 5.1 / CCA 5.1 0,00 0,00%
EL EL N/EL N/EL N/EL N/EL
0,13%
Transport by motorbikes, passenger cars and light commercial
vehicles
CCM 6.5 / CCA 6.5 0,07 0,72%
EL EL N/EL N/EL N/EL N/EL
1,37%
Freight transport services by road CCM 6.6 / CCA 6.6 0,53 5,82%
EL EL N/EL N/EL N/EL N/EL
9,24%
Installation, maintenance and repair of energy efficiency equipment CCM 7.3 / CCA 7.3 0,19 2,10%
EL EL N/EL N/EL N/EL N/EL
3,01%
Installation, maintenance and repair of instruments and devices for
measuring, regulation and controlling energy performance of buildings
CCM 7.5 / CCA 7.5 0,00 0,00%
EL EL N/EL N/EL N/EL N/EL
0,38%
Acquisition and ow nership of buildings CCM 7.7 / CCA 7.7 4,09 44,70%
EL EL N/EL N/EL N/EL N/EL
45,26%
CapEx of Taxonomy-eligible but not environmentally
sustainable
activities (not Taxonom y-aligned activities) (A.2)
5,00 54,55% 54,55% 0,00% 0,00% 0,00% 1,20% 0,00% N 61,62%
A. CapEx from eligible activities (A.1 + A.2) 5,00 54,55% 54,55% 0,00% 0,00% 0,00% 1,20% 0,00% 61,62%
CapEx of Taxonomy-non-eligible activities (B) 4,16 45,45%
TOTAL 9,16 100,00%
2024
Substantial Contribution Criteria
DNSH criteria ("Does Not Significantly Harm ")
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. CapEx of environmentally sustainable activities (Taxonom y-aligned)
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
86
KEY OPERATING EXPENSES (OPEX) INDICATOR
Section 1.2.1(a), (b) of Annex I to the Delegated Act on Publications
Section 1.2.3.3(c) of Annex I to the Delegated Act on Publications
The key indicator OpEx is defined as taxonomically acceptable and taxonomically aligned operating
expenses (numerator) divided by total operating expenses as defined by the EU Taxonomy (denominator).
Total operating expenses consist of direct non-capitalized costs related to research and development, building
renovation measures, short-term rent, maintenance and repairs. This includes:
- The scope of non-capitalized leases is determined in accordance with IFRS 16 and includes the costs
of short-term leases and leases of low value (Consolidated annual report of the Čakovečki mlinovi
Group for 2024, p. 158. to 159.) Although low-value leases are not explicitly listed in Article 8 of
the Delegated Act, the Čakovečki mlinovi Group interprets the act in such a way as to include these
leases.
- The maintenance and repair costs of property, plant and equipment are determined based on the
maintenance and repair costs allocated to the internal cost centres of the Čakovečki mlinovi Group.
The related cost items can be found in various line items in the Čakovečki mlinovi Group's income
statement, including production costs (maintaining operations), sales and distribution costs
(maintaining logistics) and administrative costs (such as maintaining IT systems). This also includes
building renovation measures.
In general, this includes personnel costs, service costs and material costs for day-to-day servicing, as well as
for regular and unscheduled maintenance and repair measures. These costs are directly allocated to NPO
(Property, Plant and Equipment). This does not include expenses related to the day-to-day operation of the
NPO such as: raw materials, costs of employees operating machinery and electricity or fluids required for
the operation of the NPO. Direct training costs and other human resource adjustment needs are excluded
from the denominator and numerator.
By analysing the operating costs of the Čakovečki mlinovi Group, costs associated with defined activities
that meet the requirements of the Taxonomy were identified.
87
OPERATING EXPENSES (OPEX) TEMPLATE FOR 2024.
Financial year 2024
Economic activities Code
OpEx
Proportion of
OpEX
Climate Change
Mitigation
Climate
Change
Adaption
Water Pollution
Circular
Economy
Biodiversity
Climate
Change
Mitigation
Climate Change
Adaption
Water Pollution
Circular
Economy
Biodiversity
Minimum
Safeguards
Taxonomy aligned
proportion (A.1.) or
eligible (A.2.)
OpEx, 2023
Category -
enabling
activity
Category -
transitional
activity
Text m€ %
Y; N; N/EL (b)
(c)
Y; N; N/EL (b)
(c)
Y; N; N/EL (b)
(c)
Y; N; N/EL (b)
(c)
Y; N; N/EL (b)
(c)
Y; N; N/EL (b)
(c)
Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
- 0,00 0,00%
N/EL N/EL N/EL N/EL N/EL N/EL N N N N N N N
0,00% - -
OpEx of environmentally sustainable activities (Taxonomy-
aligned) (A.1)
0,00 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% N N N N N N N 0,00% - -
Proportion of enabling 0,00 0,00%
Proportion of transitional 0,00 0,00%
A.2. Taxonomy-Eligible but not environmentally sustainable
activities (not Taxonomy-aligned)
EL; N/EL (f) EL; N/EL (f) EL; N/EL (f) EL; N/EL (f) EL; N/EL (f) EL; N/EL (f)
Transport by motorbikes, passenger cars and light commercial vehicles CCM 6.5 / CCA 6.5
0,093 3,21%
EL EL N/EL N/EL N/EL N/EL
2,97%
Freight transport services by road
CCM 6.6 / CCA 6.6
0,096 3,30%
EL EL N/EL N/EL N/EL N/EL
3,66%
Acquisition and ownership of buildings
CCM 7.7 / CCA 7.7
2,32 79,88%
EL EL N/EL N/EL N/EL N/EL
79,10%
OpEx of Taxonomy-eligible but not environmentally sustainable
activities (not Taxonomy-aligned activities) (A.2)
2,51 86,39% 86,39% 0,00% 0,00% 0,00% 0,00% 0,00% N 85,74%
A. OpEx from eligible activities (A.1 + A.2)
2,51 86,39% 86,39% 0,00% 0,00% 0,00% 0,00% 0,00% 85,74%
OpEx of Taxonomy-non-eligible activities (B) 0,40 13,61%
TOTAL 2,90 100,00%
2024
Substantial Contribution Criteria
DNSH criteria ("Does Not Significantly Harm")
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. OpEx of environmentally sustainable activities (Taxonomy-aligned)
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
88
KEY INDICATORS RECAPITULATION
The tables introduced by the Delegated Act of the Taxonomy Regulation are intended to provide information if companies have activities that are eligible under multiple
objectives. This way, companies can show all their contributions as double counting is allowed within these new smaller tables, which is not allowed in the standard table
(templates).
Turnover share/total turnover
Share of CapEx/Total CapEx
Share of OpEx/ Total OpEx
Taxonomically
aligned by target
Taxonomically
acceptable by
purpose
Taxonomically
aligned by target
Taxonomically
acceptable by
purpose
Taxonomically
aligned by target
Taxonomically
acceptable by
purpose
CCM
%
0.32%
CCM
%
53.34%
CCM
%
86.39%
CCC
%
%
CCC
%
%
CCC
%
%
WTR
%
%
WTR
%
%
WTR
%
%
CE
%
%
CE
%
1.20%
CE
%
%
PPC
%
%
PPC
%
%
PPC
%
%
BIO
%
%
BIO
%
%
BIO
%
%
CCM: Climate Change Mitigation
CCA: Climate Change Adaptation
WTR: Sustainable use and protection of water and
marine resources
CE: Transition to a circular economy
PPC: Pollution Prevention and Control
BIO: Protection and restoration of biodiversity and
ecosystems
89
E1 Climate change
E1-1 - Transition plan for climate change mitigation
Čakovečki mlinovi Group recognize climate change as a key factor that can impact our business model and
long-term sustainability. Currently, the Čakovečki mlinovi Group has not adopted a transition plan for
climate change mitigation.
The management will consider the deadline for adopting the transition plan.
64
ESRS 2 SBM-3 - Significant impacts, risks and opportunities and their interaction with strategy and
business model
The Group did not identify any significant climate risks during the dual significance assessment.
65
In accordance with the climate risk analysis, conducted through a double significance assessment, the Group
has identified potential physical risks of weather events on the possibility of transportation, temperature
increases and precipitation affecting the quality and availability of cereals, as well as transition risks
associated with increased costs of maintaining the cold chain and rising energy prices and interruptions in
electricity supply. Based on the results of the climate risk analysis and double significance assessment, the
transition and physical risks are not assessed as significant, as the Group believes that by diversifying the
business model and sources of raw materials for production, investing in energy-efficient technologies and
adapting infrastructure, it already mitigates these potential risks.
66
All climate risks that were considered in the context of the dual materiality assessment related to the value
chain and the Group's own operations.
The Group has not conducted an analysis of the transition to a resilient, low-carbon economy, and therefore
cannot assess the impact on macroeconomic trends in the environment, nor the estimated financial
consequences of significant physical and transition risks, or mitigation measures and resources.
67
In the dual significance assessment process conducted in 2024, the Group did not identify significant physical
and transition risks related to climate, and accordingly, no resilience analysis to climate-related risks was
performed.
68
ESRS 2 IRO-1 - Description of procedures for identifying and assessing significant impacts, risks and
opportunities associated with climate change
A detailed description of the procedures for determining and assessing significant effects, risks and
opportunities related to climate change can be found in the general disclosures section (ESRS 2) of this
Report.
E1-2 - Policies related to climate change mitigation and adaptation
The Čakovečki mlinovi Group has not developed a specific policy related to climate change and climate
change mitigation and adaptation because in the reporting period it conducted a double significance analysis
for the first time and determined its significant impacts in the domain of climate change. Bearing in mind
64
E1-1 17.
65
ESRS2, SBM-3, 18
66
ESRS2, SBM-3, 19
67
ESRS 2, SBM-3, AR 7 a), b), c)
68
ESRS 2, SBM-3, AR 6,7,8
90
that the Group has recognized significant impacts related to climate change, it plans to adopt a policy related
to climate change issues in the medium term.
69
E1-3 – Measures and resources related to climate policies
In connection with the significant effects of energy consumption and GHG emissions of scope 1 and 2, the
Group initiated the issues of introducing solar energy. The measures implemented in 2024 refer to the
installation of a smaller volume of solar panels specifically on one building owned by Trgovina Krk Cvijet
Kvarnera. For now, this is the first such investment in the Group and a key step in the desire to use renewable
energy sources.
The solar power plant was put into operation in April 2024 and is currently showing positive environmental
effects. The implementation of this measure did not require significant financial investments at the Group
level.
70
E1-4 - Target values related to climate change mitigation and adaptation
Given that the Group calculated its carbon footprint (Scope 1, 2 and 3 emissions) for the first time in 2024,
no targets for reducing greenhouse gas emissions have been set, nor have any other targets related to climate
change mitigation and adaptation. The Group's management will consider setting climate change-related
targets in the medium term.
71
For now, the Group has not set an ambition related to the solar installation measure nor does it monitor the
effectiveness of the said measure.
72
E1-5 – Energy consumption and combination of energy sources
Information on the Group's energy consumption and the combination of energy sources below in the table.
Energy consumption and combination of energy sources
Year 2024.
Year N-1
(1) Consumption of coal and coal products (MWh)
-
n.a.
(2) Fuel consumption from crude oil and petroleum products (MWh)
63
n.a.
(3) Fuel consumption from natural gas (MWh)
9,709
n.a.
(4) Fuel consumption from other fossil sources (MWh)
-
n.a.
(5) Consumption of purchased or acquired electricity, heating
energy, steam and cooling energy from fossil sources (MWh)
15,198
n.a.
(6) Total energy consumption from fossil sources (MWh) (calculated
as the sum of rows 1 to 5)
24,970
n.a.
Share of energy from fossil sources in total energy consumption (%)
99.43%
n.a.
(7) Consumption from nuclear sources (MWh)
-
n.a.
69
E1-2, 22
70
MDR-A 68.a), b), c); MDR_A 69
71
E1-4, 8
72
E1-4, MDR-T 81
91
Share of energy from nuclear sources in total energy consumption
(%)
-
n.a.
(8) Consumption of renewable fuels including biomass (which
includes industrial and municipal waste of biological origin, biogas,
hydrogen from renewable sources, etc.) (MWh)
-
n.a.
(9) Consumption of purchased or acquired electricity, heating
energy, steam and cooling energy from renewable sources (MWh)
-
n.a.
(10) Consumption of energy from renewable sources from own
production, excluding fuel (MWh)
142
n.a.
(11) Total renewable energy consumption (MWh) (calculated as the
sum of rows 8 to 10)
142
n.a.
Share of energy from renewable sources in total energy consumption
(%)
0.0056%
n.a.
Total energy consumption (MWh) (calculated as the sum of rows 6
and 11)
25,112
n.a.
Energy intensity per net income
N
N-1
%N / N-1
Total energy consumption from activities in sectors with a
significant impact on the climate per net revenue from
activities in sectors with a significant impact on the climate
(MWh/monetary unit)
0.12
n.a.
n.a.
Total consumption of energy from fossil sources under the control of the Group
73
Consumption includes primary energy from crude oil, petroleum products and natural gas, as well as the
consumption of secondary non-renewable energy purchased externally, such as electricity, heat used for
heating, cooling, lighting and fuel use in vehicles. Energy consumption is based on invoices from suppliers
of individual energy sources. In relation to energy consumption, the Group only reports on energy consumed
during processes owned or controlled by the Group, applying the same scope as that used for reporting on
greenhouse gas emissions from scopes 1 and 2.
74
Total energy consumption from renewable energy sources from own production
75
The Group has one photovoltaic power plant at the Baška – Cvijet Kvarnera location, and the electricity
produced is used for its own needs. The consumption of this energy is based on readings from the power
plant's monitoring software.
76
73
MDR-M 77 c)
74
MDR-M 77 a), AR 32 a)
75
MDR-M 77 c)
76
MDR-M 77 a)
92
Energy intensity per net income
77
The Group's total net income amounts to EUR 207,123 thousand (Note 4, p.169). Total energy consumption
from activities in sectors that significantly impact the climate amounts to 25,072 MWh.
The total energy intensity calculated as energy consumption from activities in sectors that significantly affect
the climate, per net income from activities in sectors that significantly affect the climate, amounts to 25,072
MWh/ 207,122,618 EUR.
Given that the Group's activity is covered by sectors that significantly affect the climate, the Group's entire
net revenue was considered (10.61 Manufacture of milling products, 47.19 Retail sale of food, beverages and
tobacco in specialized stores and 10.71).
78
77
E1-5, 43.
78
E1-5, 42 MDR-M 77.a)
93
E1-6 – Gross greenhouse gas emissions from scopes 1, 2, 3 and total greenhouse gas emissions
The table below shows the greenhouse gas emissions of Scope 1, 2 and 3 Groups. Target values have not
been adopted.
79
Retrospect
Key milestones and target
years
Reference
year
Parallel
2024.
%N/N-1
2025
2030
2050
Annual
Scope 1
greenhouse
gas emissions
Gross
emissions of
greenhouse
gases from
emission range
1 (tons of CO2
equivalent)
5.149
-
-
-
-
Percentage of
Scope 1
greenhouse
gas emissions
from regulated
emissions
trading
programs (%)
-
Scope 2
greenhouse
gas emissions
Scope 2 gross
greenhouse
gas emissions
based on
location in
tonnes of CO2
equivalent
2,283
Gross
greenhouse
gas emissions
from scope 2
Greenhouse
gas emissions
from scope 2
(tons of CO2
equivalent)
8,362
79
E1-6, 44,45, and 52
94
Significant
Scope 3
greenhouse
gas emissions
Total gross
indirect Scope
3 greenhouse
gas emissions
(tonnes of
CO2
equivalent)
220,712
1. Purchased
goods and
services
184,542
[Optional
subcategory:
Cloud
computing and
data center
services
-
2. Capital
goods
1,899
3 Activities
related to fuel
and energy
(not included
in scope 1 or
2)
4,358
4 Higher-level
transportation
and
distribution
325
5 Waste
generated
during
business
operations
380
6 Business
trips
1
7 Employee
travel to work
1,583
8 Leased
assets at a
higher level of
the value chain
3,568
9 Lower level
transportation
231
10 Processing
of sold
products
-
11 Use of sold
products
12,717
12 End-of-life
processing of
sold products
8,171
13 Leased
assets at a
829
95
lower level of
the value chain
14 Franchises
-
15 Investments
2.109
Total
greenhouse
gas emissions
Total
greenhouse
gas emissions
(based on
location) (tons
of CO2
equivalent)
227,165
Total
greenhouse
gas emissions
(market-based)
(tonnes of
CO2
equivalent)
233,827
Greenhouse gas intensity per net income
Parallel
N
%N/N-1
Total greenhouse gas emissions (based on location) by
net income (tons of CO2 equivalent/monetary unit)
n.a.
1.10
n.a.
Total greenhouse gas emissions (market-based) per net
revenue (in tonnes of CO2 equivalent/monetary unit)
n.a.
1.13
n.a.
The Group's total net revenue is EUR 207,123 thousand (Note 4, p.169). Total greenhouse gas emissions by
location are 227,165 tonnes of CO2 equivalent. Total greenhouse gas emissions by location by net revenue
(in tonnes of CO2 equivalent/monetary unit) are 227,165 tonnes of CO2 equivalent/EUR 207,123. Total
greenhouse gas emissions by market are 233,827 tonnes of CO2 equivalent. Total greenhouse gas emissions
by market are 233,827 tonnes of CO2 equivalent/EUR 207,123.
Amount (EUR)
Net income for calculating greenhouse gas
intensity
207,122,618
Net income (other)
-
Total net income (in financial statements)
207,122,618
96
Methodology for calculating greenhouse gas emissions Scope 1, 2 and 3:
Scope 1 and Scope 2 greenhouse gas emissions are calculated based on the provisions of the ESRS methods
of the Protocol on Greenhouse Gases, version from 2004 (The GHG Protocol Corporate Accounting and
Reporting Standard, GHG Protocol Scope 2 Guidance) based on available information within the Group.
80
Methodology for calculating Scope 1:
Scope 1 emissions by source were calculated using methodologies and emission factors appropriate to each
source as follows:
Stationary combustion (liquid and gaseous fuels): Greenhouse gas (GHG) emissions from the combustion
of liquid and gaseous fuels are calculated using DEFRA emission factors. The amount of fuel consumed is
multiplied by the applicable fuel type-specific emission factor to determine the resulting emissions. This
approach takes into account direct emissions of CO₂, CH₄ and N₂O from fuel use.
81
Refrigerants (Fugitive emissions): Emissions from fugitive releases of greenhouse gases, such as
refrigerants or equipment leaks, were calculated using the global warming potential (GWP) obtained from
the Intergovernmental Panel on Climate Change (IPCC) AR6. The amount of greenhouse gases emitted is
multiplied by the GWP of each gas to reflect their relative impact on climate change.
82
Mobile combustion (vehicles): Greenhouse gas emissions from mobile combustion sources, such as Group-
owned vehicles, have been calculated using DEFRA emission factors. The total fuel quantity has been
multiplied by the relevant emission factor to determine CO₂, CH₄ and N₂O emissions from fuel combustion
(from IPCC AR 6).
83
Methodology for calculating Scope 2:
Scope 2 emissions are calculated based on the total amount of electricity delivered to the Group's facilities
or operations under its financial control. Electricity consumption data is multiplied by relevant location-based
(source of emission factor is IEA) and market-based emission factors (source of emission factor is AIB).
Location-based method: This method uses average grid emission factors based on the geographic location
of electricity consumption, reflecting the regional energy mix.
84
Market-based method: This method uses market-specific emission factors to reflect the amounts of energy
obtained from renewable sources or special contracts, ensuring that emissions reflect the type of electricity
purchased.
85
Overview of the methodology for calculating individual Scope 3 categories:
Individual categories from Scope 3 were calculated by selecting applicable methods from the Protocol on
Greenhouse Gases, version from 2004 (GHG Protocol Technical Guidance for Calculating Scope 3
Emissions v1.0 – Supplement to the Corporate Value Chain (Scope 3) Accounting and Reporting Standard)
based on available information. When determining the reporting limit, it was concluded that categories 10.
80
AR 39. a)
81
AR 39. b)
82
AR, 3 b); AR 39. d)
83
AR 39. b)
84
AR 39. b)
85
AR 39. b)
97
Processing of sold products, 14. Franchises and 15. Investments do not need to be calculated due to the
specifics of the Group's operations, which are additionally explained in the information below.
86
1. Purchased goods and services: Calculated based on the consumption-based method.
2. Capital goods: Calculated based on the consumption-based method.
3. Fuel and energy related activities (not included in Scope 1 or 2): Calculated based on energy consumption
data obtained from energy suppliers.
4. Higher-level transportation and distribution: Calculated based on average kilometres travelled and modes
of transportation.
5. Waste generated during operations: Calculated based on the waste type-based method.
6. Business trips: Calculated using a method based on information on the number of overnight stays.
7. Employee travel to work: Calculated using a method based on average kilometres travelled and types of
transportation.
8. Leased assets at a higher level of the value chain: Calculated based on a method based on the specificity
of the asset (square footage) and for part of the data based on the energy consumption of the leased assets at
a higher level of the chain.
9. Downstream transport: Calculated using a consumption-based method.
10. Processing of sold products: Not applicable, the Group does not produce semi-finished products that are
processed by third parties.
11. Use of products sold: Calculated using a method based on the direct use of products that directly consume
energy, products that emit greenhouse gases during their life cycle, and emissions from the sale of petroleum
products.
12. End-of-life treatment of products sold: Calculated based on data on the type of waste and the method of
waste disposal.
13. Leased assets at a lower level of the value chain: Calculated based on a method based on the specificity
of the asset (square footage) and for part of the data based on the energy consumption of the leased assets at
a lower level of the chain.
14. Franchises: Not applicable, the Group does not own any franchises.
15. Investments: Calculated based on shares in associated companies or based on investments in equity
instruments.
After calculating the total amount of greenhouse gases in Scope 3 and based on a comparison of the results
obtained after calculating individual categories, it was concluded that the most significant categories for the
Group are category 1. Purchased goods and services and category 11. Use of products sold. Category 1 thus
generates 185,542 tCO₂ (eq), which is 84.3% of the total greenhouse gases generated in Scope 3, while
category 11 generates 4,358 tCO₂ (eq), which is 2.0% of the total greenhouse gases generated in Scope 3.
Primary data obtained from suppliers were not used for significant Scope 3 categories (category 1 and
category 11).
87
88
Detailed methodology for calculating Category 1:
Emissions in this category were calculated based on financial expenditures for purchased goods and services
using Exiobase emission factors. This process involved collating financial spending data across operations
to show total spending by relevant location- and product-specific purchasing categories. Specific Exiobase
emission factors were applied to each purchasing category based on the purchasing category description to
calculate total emissions. These emission factors were further adjusted to account for inflation using the
86
AR 39. b)
87
E1-6, AR 46 g)
88
AR 39. (b)
98
Consumer Price Index (CPI). The emission factors used are from 2022 and the inventory data is from 2024.
The inflation adjustment is based on the CPI ratio between 2022 and 2023 for the country of operation.
Excluded from the calculation:
Quantification based on financial expenditure for key operational inputs is estimated to capture a large
proportion of emissions arising from activities related to the procurement of these goods and services. In this
regard, rental of real estate and utilities, energy and fuels, electricity, business travel activities, waste
management activities, logistics services (transport) and employee transportation services are excluded from
the calculation of Category 1, as they are covered by other categories in Scope 3.
Assumptions used during the calculation:
Suppliers of goods and services are assumed to generate emissions in line with industry average estimates,
allowing for the application of generic emission factors to specialist materials where appropriate. The
financial data used does not distinguish between product, transport and use costs. Therefore, assumptions are
made as to whether these costs should be separated to account for both product and transport or attributed
directly to the product. Product costs are assumed to include transport costs, without separating them into
different categories. Exiobase emission factors are calculated on a ‘cradle-to-gate’ basis, covering the entire
life cycle of the goods, including emissions from upstream transport.
Detailed methodology for calculating category 11:
The calculation was made by selecting the applicable methods from the Greenhouse Gas Protocol, version
from 2004 (GHG Protocol Technical Guidance for Calculating Scope 3 Emissions v1.0 – Supplement to the
Corporate Value Chain (Scope 3) Accounting and Reporting Standard) based on available information and
IPCC Guidelines for National Greenhouse Gas Inventories, Chapter 3: Mobile Combustion.
The following methodologies were applied for the different main product categories:
1. Products that directly consume energy:
For products that directly consume energy (fuel or electricity) during use, emissions are calculated according
to the following formula: Σ (total expected use of the product during its lifetime × number sold in the
reporting period × electricity consumed per use (kWh) × emission factor for electricity (kg CO2e/kWh))
2. Products that contain or generate greenhouse gas emissions:
For products containing or emitting greenhouse gases during use, the following formula was used: Σ
(expected product use over the entire lifetime × number sold in the reporting period × refrigerant leakage per
use (kg) × global warming potential (GWP) (kg CO2e/kg)). In this calculation, refrigerant leakage per use
was applied from IPCC Table 3: Default Emission Factors for Refrigeration/Air Conditioning Equipment. A
conservative approach was taken by choosing the upper bound of the estimated ranges for both refrigerant
leakage per use (kg) and the lifetime (years) of the refrigeration and air conditioning system. This decision
was made due to the lack of precise data on refrigerant leakage and product lifetime, thus ensuring a more
accurate emission estimate.
99
3. Fuels and petroleum raw materials:
Emissions from fuels and petroleum feedstocks were calculated using the following formula: Σ (total amount
of fuel/feedstock sold (e.g. kWh) × combustion emission factor for the fuel/feedstock (e.g. kg CO2e/kWh)).
In addition, IPCC guidelines were applied to calculate CO2 emissions from AdBlue (urea-based catalyst).
AdBlue typically contains 32.5% urea by weight. CO2 emissions from urea application can be estimated
using the following formula: CO2 emissions = Σ Activity x (12/60) x Purity x (44/12) Where: Emissions =
CO2 emissions from urea-based additives in catalysts Activity = amount of urea-based additives consumed
for use in catalysts Purity = mass fraction (= percentage by 100) of urea divided by urea-based additive Factor
(12/60) includes the stoichiometric conversion from urea (CO(NH2)2) to carbon, while the factor (44/12)
converts carbon to CO2.
Assumptions used during the calculation:
For products containing refrigerants, refrigerant leakage per use is estimated based on IPCC Table 3: Default
Emission Factors for Refrigeration/Air Conditioning Equipment (IPCC Table 3: Default Emission Factors
for Refrigeration/Air Conditioning Equipment). A conservative assumption is made by selecting the highest
values for refrigerant leakage per use and product life to account for the lack of specific data related to each
refrigeration and air conditioning system. CO2 emissions from AdBlue (urea-based catalyst) are calculated
according to the IPCC formula for urea application. The purity of urea in AdBlue is assumed to be 32.5% by
weight, which is the industry standard value. This assumption was applied to all urea-based catalyst
applications in the absence of specific purity data.
ESRS E5 - Resource use and circular economy
The Group believes that the circular economy is an important aspect to foster in customer relations. The
commitment to the circular economy stems from the awareness that sustainability is a fundamental corporate
responsibility and contributes to long-term business.
The group consists of several key business units in the business process, mill production, bakery production
and sale of trade goods through wholesale and retail. The significant impacts, risks and opportunities
associated with the circular economy are concentrated in the following units.
Production: In this phase, we use large quantities of raw materials of various grains (such as wheat and corn).
Risks include changes in raw material prices and reduced availability of materials. Of the other resources,
we use electricity and gas, as well as packaging (paper, plastic).
Distribution: Transportation of grains and finished products and packaging used for packing finished
products.
Sales: Packaging used in the sale of all merchandise.
E5-1 – Policies related to resource use and the circular economy
There is no specific policy related to resource use and circular economy at the Group level, as the Group
conducted a dual significance analysis for the first time in the reporting period and identified its significant
impacts related to waste and resource inflow. The Group manages waste according to the rules on waste
disposal and collection by category, to mitigate negative impacts on the environment.
100
E5-2 – Measures and resources related to resource use and circular economy
Related to the significant negative effect of waste generation, in the production process of mill and bakery
products there are products that can be additionally used without throwing them into the waste. In this way,
we have the sale of broken grains mainly as feed for cattle. Old bread and bread from returns that can be used
can also be bought to feed livestock, while that which is not edible can be used as raw material for a biogas
plant.
Additionally, the production process of processing grains into flour creates a by-product that is used as
livestock feed, with waste generated during the milling process being minimized.
89
Until now, all this was a process that was considered normal in the business of milling and baking, for which
an action plan and the necessary resources for implementation were not developed, and we will take this
process into account during the development of the environmental protection and circular economy policy.
90
In the trade segment, promotional sales of products are made before the expiration date, which reduces the
need to write off products and create waste.
Comprehensive measures will be defined in accordance with the definition of target values.
E5-3 – Target values related to resource use and circular economy
The Group has not developed targets related to resource use and the circular economy, as it conducted a dual
materiality assessment for the first time in 2024 and identified significant impacts, risks and opportunities.
This will be reviewed in the medium term.
91
E5-4 - Inflow of resources
The key raw material for the Group is wheat, which is mainly of domestic origin.
Key raw materials include corn and rye, most of which are sourced from Croatia. Packaging is mainly sourced
from Croatia. In terms of quantity, around 67% of the required raw materials and around 100% of the
packaging material is sourced from the Croatian market.
The Group used the following significant resources during 2024:
Key resources for production
Quantity (tons)
Biological material (Yes/No)
Cereals
74,676
Yes
Merchandise
26,194
No
Total raw materials
100,870
-
Packaging
257
No
Total (raw materials and
packaging)
101,127
-
The data presented in the table on key resources was obtained by direct measurement or based on the
quantities received by the Group during 2024, except for the category of trade goods for which the quantity
data is approximated.
92
89
MDR-A 68.a),b)
90
MDR-A 68.c), MDR-A 69.
91
E5-3, 23
92
E5-4, 30. 32., 31.a), b), c), MDR-M 77.a)
101
E5-5 – Resource drain
The total amount of waste in 2024 was 2,486 tons
93
Hazardous waste accounts for 9 tons and non-hazardous waste amounts to 2,477 tons
94
Amount of waste according to recovery process
95
HAZARDOUS WASTE
Quantity (tons)
Total quantity by weight diverted from disposal -
preparation for reuse
8.97
Total quantity by weight diverted from disposal - recycling
8.97
Total quantity by weight diverted from disposal - other
recovery operations
-
NON-HAZARDOUS WASTE
Quantity (tons)
Total quantity by weight diverted from disposal -
preparation for reuse
1,791.26
Total quantity by weight diverted from disposal - recycling
1,791.26
Total quantity by weight diverted from disposal - other
recovery operations
-
Waste by mass to be disposed of
96
Quantity (tons)
Hazardous waste
8.97
Non-hazardous waste
1,791.26
93
E5-5, 37 a)
94
E5-5, 37 b)
95
E5-5 37. b)
96
E5-5 37. c)
102
Waste according to treatment process
97
HAZARDOUS WASTE
Quantity (tons)
Total quantity by mass diverted from disposal -
incineration
-
Total quantity by mass diverted from waste disposal -
disposal
-
Total quantity by weight diverted from disposal - other
disposal operations
-
NON-HAZARDOUS WASTE
Quantity (tons)
Total quantity by mass diverted from disposal -
incineration
-
Total quantity by mass diverted from waste disposal -
disposal
694,84
Total quantity by weight diverted from disposal - other
disposal operations
-
Unrecycled waste
98
Unrecycled waste
Quantity (tons)
Percentage (%)
Total amount of unrecycled waste
694,84
27.9%
The Group's activities include sorting waste according to key waste numbers and containers without
additional waste treatment procedures. All waste is sent for further treatment to legal entities that hold
environmental permits for waste treatment or disposal.
99
All waste generated in the Group relates to food waste and waste from other commercial goods. Food waste
is generated as part of technological processes in production or at the end of the shelf life. In the case of other
commercial goods, in the event of a product failure or malfunction. Waste is classified according to the nature
of the waste type, stored and handed over to specialized waste disposal companies.
100
The data on the amount of waste obtained is based on weighing by companies that take over the waste for
further processing (landfill, recovery and similar procedures).
101
97
E5-5 37. c)
98
E5-5 37. d)
99
E5-5, 40
100
E5-5, 40
101
E5-5, 40 MDR-M 77.a)
103
2. Social information within the sustainability report
ESRS-2 SBM-3 Significant impacts, risks and opportunities and their interaction with strategy and business
model
The Group's business model is focused on ensuring a balance between permanent and temporary workers.
Currently, the Group invests in education and training of workers to improve their productivity, while
temporary employment through agencies allows for a quick solution to the labour shortage. In the long term,
the Group plans to automate heavy manual tasks through the modernization of machinery, thereby reducing
the need for hard labour.
Improving working conditions, such as providing quality work clothes, refreshments for night shift workers
and increasing transparency of wages, is also a priority. The introduction of an internal communication app
makes it easier for workers to stay informed, and adapting working hours to the needs of employees with
family responsibilities demonstrates the Group's flexibility. In the event of health crises such as a pandemic,
the Group further adjusts its strategy by introducing stronger health and safety measures.
102
Risks to the Group arise if the well-being of the workforce is not ensured, such as poor working conditions
or low wages, which can result in negative reactions in the media and among consumers and threaten the
Group's reputation. High workforce turnover also increases costs, undermines the quality of work and makes
it difficult to inherit skills.
On the other hand, investing in the education and development of young workers provides opportunities to
increase engagement and efficiency. Also, the Group could build a positive reputation through a just
transition strategy, which includes improving working conditions and ethically sourcing products. This can
attract customer loyalty and ensure competitive advantages in the market.
103
In the structure of the Group's employees, in addition to the regular employment of the Group, there are
also:
• Agency workers – employed through third parties to perform temporary or seasonal work.
• Students and pupils – employed through work contracts or student contracts for professional practice
and auxiliary work.
• Mentors – external associates who provide education and professional guidance to employees and
interns.
104
The identified significant negative impacts are widespread (e.g. data privacy, adequate wages, occupational
safety, equal treatment and opportunities including training), while the negative impacts associated with retail
robberies, mill fires and explosions and overtime are systemic as they relate to a specific population of Group
employees.
105
According to the Group's previous experience, we have positive experiences in working with students and
pupils, whereby providing these groups with professional practice and education, we improve their
employability and secure future staff. For agency workers and mentors, we create opportunities for long-term
cooperation and professional development.
106
102
ESRS-2 SBM-3, 13 a), b)
103
ESRS-2 SBM-3, 13 b)
104
ESRS-2 SBM-3, 14 a)
105
ESRS-2 SBM-3, 14 b)
106
ESRS-2 SBM-3, 14 c)
104
The Group has identified a significant risk related to labour shortages. A shortage of qualified personnel
(millers and bakers) makes it difficult to maintain production standards and increases operational risks, while
a shortage of labour in retail may affect the operation of the retail network. In general, a general labour
shortage may create additional pressure on existing employees, higher labour costs and reduced operational
flexibility.
107
108
The Čakovečki mlinovi Group has not developed a transition plan for moving to greener and more climate-
neutral operations, and consequently there are no significant impacts on its own workforce.
109
Based on the significance assessment (ESRS 2 IRO-1), we identified the following risk groups in the mill
and bakery industry and in trade:
1. Workers in the bakery industry
o Exposure to high temperatures in bakeries can lead to heat stress and dehydration.
o Long-term work in such conditions increases the risk of exhaustion and health problems.
2. Milling industry workers
o Exposure to flour and dust particles increases the risk of respiratory diseases and allergic
reactions.
o Insufficient ventilation and protective equipment can exacerbate respiratory problems.
3. Workers exposed to airborne allergens
o Allergens from flour are present in the bakery and milling industry, which can cause
occupational asthma and skin irritations.
o Long-term exposure without adequate protection increases health risks.
The Group is taking measures to reduce negative effects through ventilation systems, protective equipment
and health checks to ensure worker safety.
4. Retail employees – the risk of turnover is particularly sensitive in the season when it is more difficult to
find employees due to tourism. It is of utmost importance for the Group to ensure quality staff throughout
the year and great efforts are made to retain existing staff.
110
107
ESRS-2 SBM-3, S1, 14 d)
108
ESRS2, SBM_3, S1 16
109
ESRS2, SBM-3, S1 14 e)
110
ESRS2, SBM-3, S1 15
105
ESRS S1 Own workforce
S1-1
The Čakovečki mlinovi Group implements a policy related to its own workforce through adopted Regulations
related to its own workforce. An independent policy related to its own workforce. Thus, at the level of each
individual company, the Group has in force the Regulations on Salaries and Other Material Rights, the
Regulations on Labor, the Regulations on Handling Personal Data, the Regulations on the Management
Board's Work, the Regulations on the Supervisory Board's Work, the Regulations on the Procedure for
Internal Reporting of Irregularities, the Regulations on Handling Inside Information, the Regulations on
Occupational Safety and Health, and others.
111
The Labor Code regulates working conditions, rights and obligations of employees and the Company,
promotes worker dignity, protection from discrimination, wages and other work-related issues. This reduces
the risk of labour disputes and dissatisfaction among employees.
The Regulations on Salaries and Other Material Rights regulate the bases and criteria for the calculation and
payment of salaries and other material rights of workers, this reduces the possibility of misunderstandings
and disputes over payments, contributes to the financial stability of workers and encourages their motivation.
The Regulations on the Handling of Personal Data regulate the implementation of the Company's current
Personal Data Protection Policy, or the rules for the processing and protection of personal data of respondents,
to ensure the legality of processing and adequate protection of personal data that will be processed in its
business by the Company as the controller of personal data. It is applicable to all employees, persons working
under a contract of employment, service providers, volunteers, students, members of the Management Board
and Supervisory Board. It defines the principles of processing, types of processing, purposes of processing,
retention periods, transfer to third countries and the rights of respondents. This reduces the risk of data misuse
and legal consequences due to non-compliance with data protection regulations.
The Regulations on the Internal Whistleblowing Procedure regulate the procedure for reporting irregularities
in the ČKML company and the procedure for appointing a confidential person and their deputy. It provides
a mechanism for reporting irregularities within the Company, reduces the fear of retaliation and contributes
to the creation of a transparent and ethical working environment.
The Ordinance on the Organization of the Implementation of Occupational Safety and Health, and the Rights,
Obligations and Responsibilities of Authorized Persons and Workers defines the responsibilities and
obligations of all participants in relation to occupational safety and health, reducing the risk of injuries and
occupational diseases, thereby increasing the safety and well-being of workers.
112
Internal regulations apply to all employees unless the rights and obligations of an individual employee, or
the rights and obligations of the company, are otherwise regulated by an employment contract or some other
type of agreement concluded between the company and the employee.
Operations – All policies apply to all employees, but specific provisions may vary depending on the
workplace (e.g. occupational health and safety is particularly relevant to operational workers).
Value chain level – Policies cover internal employees and can be extended to external collaborators and
suppliers (e.g. personal data protection and whistleblowing).
Geographical features – These apply to all business locations.
111
S1-1, AR 11
112
S1-1 19. MDR-P 65 a), e)
106
Stakeholders – In addition to employees, policies affect management, regulators, and external partners (e.g.,
a data protection policy may also apply to customers and suppliers).
The management of the Company is responsible for the implementation of these activities. Implementation
and supervision are carried out by the Managers of business units and Managers, with the support of the
Service for General and Legal Affairs.
113114
All the described documents and regulations related to its own workforce are issued by the Management in
consultation with the trade union and are available on the company's bulletin boards and in the relevant
departments, primarily in the General and Legal Affairs Department, while the Occupational Safety
Regulations are available in the Technical Department.
115
Although the company does not monitor compliance with the UN-leading principles and rules at work and
human rights, the Declaration of the International Labor Organization on fundamental principles and rights
at work and the OECD Guidelines for multinational companies, it monitors and ensures compliance with all
laws of the Republic of Croatia.
Through internal company documents, respect for human rights is ensured, such as:
116
- Fair working conditions (safety at work, fair wages, prohibition of forced and child labour),
- Workers have the right to form unions and negotiate working conditions,
- Discrimination based on gender, race, ethnicity, religion, disability, sexual orientation, etc. is
prohibited.
- The employer ensures equal pay for equal work and equal opportunities for advancement,
- The right of workers to be informed and participate in decision-making is respected,
- The privacy of employees and personal data is protected,
- Working hours and work-life balance are respected.
The protection of our employees is a priority for the Group, and all our employees are covered by an
occupational safety system in accordance with the provisions of the Occupational Safety and Health Act, to
prevent accidents, create safe working conditions and protect the health of employees.
117
There are no separate policies aimed at protecting dignity and harassment, but it is mentioned and prescribed
in the Group's Rules of Procedure.
The rulebook defines the protection of workers' dignity and harassment. The group is obliged by the rulebook
to protect workers from direct or indirect discrimination in the field of work and working conditions,
including selection criteria and conditions for employment, promotion, career guidance, professional training
and development and retraining, in accordance with the Labor Act and special laws. The rulebook also
defines the process for filing a complaint and ensuring legal remedy - which includes appointing two persons
of different genders to receive complaints.
This process, and the protection of the person submitting the report, is also defined in the Regulations on the
procedure for internal reporting of irregularities and the appointment of a confidential person.
118
S1-2 – Procedures for engaging with your own workforce and worker representatives regarding
impacts
114
S1-1 19. MDR-P 65 c)
115
S1-1 19. MDR-P 65 e), f)
116
S1-1 20.
117
S1-1 23.
118
S1-1 24. a),b),c),d)
107
The Group considers the perspectives of its workforce in making decisions related to workforce impacts
through collaboration with employee representatives and unions.
Cooperation with workers takes place directly with worker representatives on the supervisory board and
unions, who regularly consult on issues affecting the workforce.
Types of cooperation:
• Information: Workers are regularly informed about changes that affect them. Such as changes in
working conditions and obligations. Unions and workers' representatives also inform management
about priority issues for workers, including their expectations and wishes related to working
conditions.
• Consultation: Unions and workers' representatives advise management on relevant issues.
• Participation: Worker representatives actively participate in decision-making on important issues.
• Frequency of cooperation: Regular: Cooperation is continuous, and meetings are held monthly.
Human resources coordinate cooperation, with the active role of worker representatives in the supervisory
board.
The group does not have a global framework agreement but adheres to local laws and treaties.
The Group considers the explanations and comments when conducting the consultation or co-decision
process with the union representative and takes corrective measures when necessary.
119
Measures to gain insight into the perspectives of the workforce, especially vulnerable and
marginalized groups:
We have introduced an internal communication application to facilitate two-way communication between
employees and management and to ensure that all employees could express their views, suggestions and
concerns. In addition to the application, we organize employee meetings twice a year and provide individual
discussions at least once a year, or more often if the employee wishes. In addition, we regularly hold meetings
with departments to analyse employee needs and ensure timely support measures.
120
Recording and integrating feedback:
We collect feedback through the app, regular meetings, and anonymous surveys. All feedback is analysed by
relevant teams and management, and key findings are integrated into the decision-making process. After
implementing certain measures, we inform employees through the app, internal newsletters, and meetings so
that they can see concrete changes that are a result of their suggestions.
Collaboration within the organization:
We conduct collaboration activities at the organization-wide level, as well as at the level of individual
locations and departments. We centralize the information collected from various initiatives through our
application and regular internal reports, so that it is available to all decision-makers.
Resources allocated for collaboration:
To implement the cooperation activities, we provide financial resources for the development and maintenance
119
S1-1 27. a), b), c), d), e)
120
S1-1 28.
108
of a communication application, the organization of employee meetings and gatherings, and training for
managers on the importance of inclusive communication. Also, human resources include the internal
communications team, HR department, and employee representatives who actively participate in the
implementation of the measures.
Cooperation in the context of transitioning to green business:
A transition plan has not been developed, and no analysis of the impact of the transition to climate-neutral
operations and the link to its impact on jobs has been conducted.
121
S1-3 – Procedures for remediating adverse impacts and channels through which your own workforce
can express concerns
Our disciplinary procedure provides legal remedy in cases of all identified significant adverse effects on
workers. The procedure includes a report and a formal investigation, during which relevant evidence is
collected and all parties involved are heard. Based on the established facts, a decision is made in accordance
with internal acts and applicable regulations.
Workers are allowed to file a complaint, and the effectiveness of the legal remedy is assessed through the
analysis of repeated cases, feedback and the assessment of the corrective measures applied. The General and
Legal Affairs Department monitors the implementation of procedures and ensures their compliance with
regulations.
122
Specific channels for expressing concerns
Workers can express concerns through a direct channel to the manager, the general and legal affairs
department, or anonymously through an internal application. Also, a third-party channel is available through
an external application. Questions put to the manager are immediately resolved orally, while written inquiries
to the general and legal services are followed up until they are answered.
123
Monitoring and supervision of the questions asked and processed
Through the application, we provide an overview of the questions raised and processed. Questions raised
directly to the manager are resolved immediately, while written inquiries to the general and legal departments
are recorded and the timeliness of responses is monitored. We assess the effectiveness of the channel by
analysing reports and employee feedback.
We have publicly announced the method for reporting irregularities and relevant regulations and have
appointed a confidential person to receive reports. We also have an authorized person to receive and resolve
complaints related to worker dignity.
We regularly inform employees about these structures through internal notifications and training and monitor
their awareness and trust through feedback. We have established policies to protect whistleblowers and other
involved persons from retaliation, ensuring confidentiality and impartiality in the treatment.
124
S1-4 – Taking measures for significant impacts on own workforce, approaches to managing significant
risks and realizing significant opportunities related to own workforce, and the effectiveness of these
measures
In the reporting year, we took the following key measures to prevent and mitigate negative impacts on
employees, identified through the assessment of dual significance on employees:
125
121
S1-1 AR 24.e), S1-4. AR 43.
122
S1-1 32. a),c)
123
S1-1 32. b),d)
124
S1-3 33., 34.
125
S1-4 37., 38. a), MDR 68. a), b)
109
Increasing material benefits
Expected outcomes:
- Greater employee motivation and engagement.
- Increasing employee satisfaction, which can result in lower turnover rates and higher engagement.
- Attracting new candidates thanks to additional benefits.
Rewards for successful referrals can increase the pool of qualified candidates, while financial assistance for
new-borns and mentoring allowances demonstrate concern for employees' personal and professional goals.
This also contributes to a sense of value and belonging to the Group, thereby achieving loyalty and motivation
goals.
Improving the balance of business and private life
Expected outcomes:
- Better work-life balance increases employee satisfaction, reduces stress, and increases
productivity.
- Employees feel supported and respected, which can reduce turnover
By allowing flexible working hours and working from home, employees can better balance family and
professional responsibilities, which leads to greater satisfaction and engagement. An additional day off for
parents of first graders further facilitates family adjustments, which contributes to long-term employee
loyalty.
Improving the working environment
Expected outcomes:
- A positive atmosphere in the team, which leads to better interpersonal relationships and stronger
cooperation.
- Increased productivity, motivation and reduced stress
- Reduced employee turnover
- Attracting qualified workers
The introduction of coffee machines and the organization of team building activities contribute to a more
relaxed working atmosphere and better employee bonding.
110
Employee development and evaluation system
Expected outcomes:
- Increasing the qualifications of workers,
- better adaptation of the workforce to the labour market,
- faster integration process of new employees,
- clearer and fairer evaluation of employee performance, which improves professional development
- reducing the need for external experts
Implementing onboarding systems and mentoring programs helps new employees integrate into the work
environment more easily and quickly, improving their experience and reducing initial stress. Employee
appraisals contribute to clarity regarding expectations, provide employees with feedback for improving their
work, and enable the recognition of excellent employees, which strengthens their engagement and
motivation. Organizing seminars, educational programs for training. Qualified employees can perform more
complex tasks, which reduces the need for additional employment and increases competitiveness and quality
of work.
Employee turnover analysis
Expected outcomes:
- Collecting useful data to identify the causes of employee turnover.
- Increasing employee retention through improving working conditions.
By conducting surveys and analysing exit interviews, we gain insight into the reasons why employees leave
the Group. Based on this data, we take concrete steps to improve working conditions and ensure better
employee retention.
Setting up cameras, alarms and access control:
Expected outcomes:
- Increased safety and a sense of security among employees.
- Reduced risks of accidents and security threats.
By implementing cameras, alarms and access control systems, we ensure a safer working environment for
our employees. People who monitor the entrances and exits of the facility help monitor security, thereby
increasing the feeling of security among employees. This approach reduces the risk of accidents.
Automation and digitalization and reduction of overtime
Expected outcomes:
- Increasing efficiency,
- reducing human errors
- increasing the speed of completing tasks.
Implementation of new technologies, procurement of automated equipment, training of workers to work with
new tools. Automation enables a reduction in the need for manual workers in some areas and overtime,
thereby reducing the pressure on employment and increasing the Group's competitiveness.
111
Protection of employee personal data
126
Expected outcomes:
- Compliance with GDPR and other relevant data protection regulations
- Restricted access to personal data to authorized persons only.
- Transparency policies, so employees know how their data is being used.
- Anonymizing data, when possible, to protect employee privacy.
- Clear internal regulations on the use of employee data for analytics and business decisions.
The Group strictly adheres to the General Data Protection Regulation (GDPR) and other relevant regulations,
ensuring that all procedures are in line with legal requirements. Furthermore, access to personal data is strictly
limited to authorized persons, thereby minimizing the risk of unauthorized use or disclosure. Transparency
is a key component of these measures, and the Group implements policies that provide employees with clear
information about how their data is used. Whenever possible, data is anonymized to further protect employee
privacy. Finally, the Group has established clear internal policies that govern the use of employee data for
analytics and business decision-making purposes, ensuring that every step is taken with ethical standards and
employee well-being in mind.
Conducting training related to occupational safety and workplace risk assessment
Related effects: occupational safety and fires and explosions.
Expected outcomes: Reduction of occupational injuries.
The above measures apply to all employees, with adjustments for specific groups (e.g. parents, mentors,
workers with specific needs), and are being implemented continuously, with some already implemented (e.g.
material benefits, adjusted working hours), while others are being gradually introduced (e.g. additional
teambuilding activities, flexible working). The implemented measures have already resulted in an improved
working atmosphere, and their effectiveness is continuously monitored through the analysis of employee
feedback and exit surveys. Confidential whistleblowers have been appointed to ensure legal redress and
worker dignity, and the procedures have been made public.
127
The process of determining the necessary and appropriate measures is based on collecting information from
workers and managers. The specific actual or potential negative impact on the workforce is analysed, and
based on this data, appropriate measures are taken to prevent or reduce the risk, such as training, adjustment
of working conditions, medical assistance or changes to the work process.
128
The process of determining the necessary and appropriate measures involves identifying adverse impacts
through feedback from workers and managers. It includes an analysis of monetary resources, human
resources, and specific individuals responsible for specific tasks, such as those responsible for occupational
health and safety, and team members who verify compliance with obligations (e.g. wearing protective
equipment). Dedicated resources for privacy are also included, depending on the nature of the adverse impact.
Based on this information, appropriate measures are taken to reduce or eliminate the risks.
129
126
S1-4 41
127
MDR 68. b), c), d), e)
128
S1-4, 39
129
S1-4, 43
112
To mitigate the risk of labour shortages, we are implementing several key measures:
130
• Expanded recruitment and referral programs: We have introduced rewards for successful
referrals to motivate our employees to bring in new candidates and expand our team with
qualified workers.
• Mentoring system: We have provided additional fees for mentors who help newly employed
persons, thereby speeding up their integration process and increasing the chances of retaining
new employees.
• Flexibility and work-life balance: We have enabled flexible working hours, working from home,
and an additional day of vacation for parents of first-year students, creating a more attractive
work environment that meets the diverse life circumstances of employees.
• Employee development: We have implemented an onboarding system for new employees, as
well as an assessment system that helps identify talents and enables their professional
development within the Group.
• Improving working conditions and well-being: Investing in better working conditions, such as
teambuilding activities and improving material benefits, increases employee satisfaction and
reduces turnover.
Given that the assessment of double materiality under the ESRS was conducted for the first time this year,
we have not currently integrated this risk into our existing risk management systems.
131
The implementation of the above measures did not require significant expenditures at the Group level.
132
The process of determining the necessary and appropriate measures is based on collecting information from
workers and managers. The specific actual or potential negative impact on the workforce is analysed, and
based on this data, appropriate measures are taken to prevent or reduce the risk, such as training, adjustment
of working conditions, medical assistance or changes to the work process.
133
S1-5 – Target values related to managing significant negative impacts, fostering positive impacts, and
managing significant risks and opportunities
The Čakovečki mlinovi Group has not adopted targets related to its own workforce. In 2024, the Group
conducted a dual significance assessment for the first time, the results of which showed significant impacts
and risks related to its own workforce, so this analysis will only serve to enable the Group to adopt strategic
guidelines and targets related to its own workforce.
134
We do not monitor the effectiveness of our policies and measures in relation to significant impacts and risks
arising from sustainability as we do not currently have established targets. Therefore, we do not have specific
monitoring procedures.
We do not have a set level of ambition or qualitative or quantitative indicators to assess progress. We do not
currently use a reference period to measure progress.
130
S1-4, 40 a)
131
S1-4, AR 47
132
MDR-A 69 c)
133
S1-4 39.
134
S1-5, ESRS 2, 72
113
S1-6 - Characteristics of Group employees
Sex
Number of employees
Men
501
Women
1,786
Else
-
Not reported
-
Total employees
2,287
Reporting period 1.1.2024 - 31.12.2024.
Čakovec Mills Group
MEN
WOMEN
NOT PUBLISHED
TOTAL
Number of employees (number)
501
1,786
2,287
Number of permanent employees
(number)
417
1,554
1,971
Number of temporary employees
(number)
82
235
317
Number of employees with non-
guaranteed working hours
(number)
Number of full-time employees
(number)
470
1,752
2,222
Number of part-time employees
(number)
31
34
65
In the reporting period, there were 482 employee departures at the end of the period and the total number of
employees at the end of the period was 2,287. Based on this number of departures (482/2,287), the average
turnover rate was 21%.
For employee characteristics indicators, the number of employees at the end of the reporting period, or on
31.12.2024, was used.
135
To properly understand employee turnover data, it is important to provide additional information that
explains the specific reasons for changes in the number of employees:
136
Reasons for fluctuation:
Employee turnover in the Group is primarily a consequence of the shortage of labour, both at the national
level in the Republic of Croatia and in the Međimurje County. The proximity of neighbouring countries such
as Slovenia, Austria and Germany additionally affect the labour market, encouraging worker mobility. In
addition, turnover is also driven by intense competition in the labour market and the development of strong
industrial sectors, which makes it difficult to retain qualified personnel. Factors contributing to turnover
include the expiration of fixed-term contracts, retirement, mutual termination of employment and
extraordinary dismissals.
135
S1-6, 50 days)
136
114
S1-10 – Appropriate salaries
Everyone in the Group receives wages in accordance with labour law, meaning no one has an income lower
than the legally prescribed minimum wage.
S1-14 – Health and safety indicators
All Group employees are covered by the health and safety management system.
137
There were 30 work-related injuries, with no work-related fatalities, in 2024. The injury rate is 13.11 per
1,000 employees, indicating a relatively low number of accidents at work.
S1-17 - Cases, complaints and serious impacts related to human rights
There were no complaints during 2024, nor any discrimination including harassment, nor any human rights
violations in the observed period.
S4 Consumers and end users
S4-1- Consumer and end-user policies
The group has not adopted an independent policy related to customers and end users, but the issues of
customers and end users are regulated by the internal act Sales procedure as part of the ISO 9001 standard.
138
S4-2 – Procedures for engaging with consumers and end users regarding impacts
Collaboration takes place directly with consumers and end users, as well as with their legitimate or trusted
representatives who have insight into their needs and situation. This approach allows the Group to better
understand users' needs and adapt its products and services to meet their specific requirements and increase
satisfaction rates.
139
Cooperation with consumers and end users takes place through several key phases:
140
• Product/service development phase: In this phase, the Group collaborates with users to gather
feedback and understand their needs, which enables the development of a product or service that
will meet market demands.
• Marketing and sales phase: The collaboration includes activities such as product promotion,
educating users about its benefits, and providing support during the purchasing decision-making
process.
• Post-sales support phase: After the sale, the collaboration continues through customer support,
resolving complaints, and providing additional information to ensure customer satisfaction and
encourage loyalty.
137
S1-14, 80 a
138
S4-1, AR 10, 15
139
S4-2 20. a)
140
S4-2 20. b)
115
The type of collaboration varies from direct communication through various channels (phone, email, social
media) to organizing workshops, webinars or focus groups. The frequency of collaboration depends on the
phase and needs of the user; it can be a one-time event during a specific phase or continuous throughout the
entire life cycle of the product or service.
141
Key functions and roles responsible for achieving collaboration with consumers include:
142
• Marketing: Responsible for developing strategies for attracting and retaining customers,
implementing marketing campaigns and analysing market trends.
• Sale: Focused on direct interaction with users, understanding their needs and providing solutions
that meet those needs.
• Customer service: Provides post-purchase customer support, resolves complaints, and ensures a
high level of customer satisfaction.
• Product development: Collaborates with users to gather feedback and integrate it into the
development process of new products or services.
These functions ensure that the results of customer engagement are integrated into the Group's strategy and
are continuously adapted to meet changing market needs.
All agreements or outcomes of collaboration, such as increased customer satisfaction, increased sales, or
reduced complaints, are carefully analysed to inform future strategies and ensure continuous adaptation to
customer needs.
143
The Group does not take measures to gain insight into the perspectives of consumers and/or end users who
may be particularly vulnerable to the effects and/or marginalized.
144
S4-3 – Procedures for remediation of adverse effects and channels through which consumers and end
users can express concerns
The Group conducts internal investigations to determine the cause of adverse impacts and takes measures to
correct the procedures or change the business practices that led to these impacts. Depending on the results of
the investigation, the responsible persons face appropriate sanctions or training for improvement.
145
In the event that the Group determines that its actions have had a significant adverse impact on consumers
and/or end users, the following steps are taken to ensure appropriate remedies:
146
1. Active recognition and recognition of problems: The Group immediately recognizes and acknowledges
the negative effects of its products or services on consumers. This step involves analysing the situation and
identifying the cause of the problem.
2. Consumer information: Consumers are informed in a timely manner about the problem that has arisen,
including information about the nature of the effect, possible consequences and steps the Group is taking to
correct the situation.
141
S4-2 20. b)
142
S4-2 20. c)
143
S4-2 20. d)
144
S4-2 21.
145
S4-3 23.
146
S4-3 25. a)
116
3. Provision of appropriate legal remedies: The Group provides consumers with access to legal remedies,
such as:
• Product repair or replacement: If the product is defective, the option of free repair or replacement
is provided.
• Price reduction or refund: In cases where repair or replacement is not possible, consumers are
offered a price reduction or a full refund.
The Group has established various channels to enable consumers and end users to directly express their
concerns or needs. These channels include email address telephone contact.
147
The group actively collects feedback through various channels, such as user satisfaction surveys and analysis
of complaints.
148
S4-4 – Taking measures for significant impacts on consumers and end users, approaches to
managing significant risks and realizing significant opportunities related to consumers and end
users, and the effectiveness of these measures
The Group takes the following measures to prevent and mitigate negative effects on consumers:
149
• Continuous quality control: We implement strict quality control procedures to ensure that our
products meet high safety standards. These procedures include regular analyses of product
composition and safety, as well as monitoring the microbiological integrity of raw materials.
• Proactive consumer education: Through marketing campaigns and educational initiatives, we inform
consumers about the importance of healthy eating and safe consumption of our products.
The Group has taken the following measures to provide legal redress for consumers:
150
• Introduction of a complaints system: A clear system for submitting complaints through our official
channels (email, phone call, online platforms) has been introduced so that consumers can quickly
and efficiently report any dissatisfaction with products or services.
• Return and complaint policy: We have provided a policy that allows for product returns or
replacements if consumers are not satisfied with the purchased products, thus providing them with
a legal and quick legal remedy.
The Group does not currently have measures in place to assess the implementation of the impacts.
151
The Group has not established target values related to consumers and end users. The measures will be
determined according to the determination of the target values.
152
147
S4-3 25. b), 27.
148
S4-3 25.d)
149
S4-4 31.a)
150
S4-4 31.b), 32.c)
151
S4-4 31.d)
152
S4-5; MDR-T 80 b
117
3. Management information within the sustainability report
The Group does not have its own Corporate Governance Code or Code of Ethics but adheres to the
recommendations and guidelines of the Corporate Governance Code of the Zagreb Stock Exchange.
However, we understand that for the long-term sustainability of the Group, this is an important document
that ensures transparency, accountability and compliance with best business practices, and we plan to adopt
it in the appropriate medium term.
The establishment, development, promotion and evaluation of corporate culture is based on transparency,
responsibility, ethics and compliance with the best corporate practices. Management bodies (Supervisory
Board, Board) play an important role in shaping the corporate culture.
The members of the supervisory board and management act in the best long-term interest of the company,
not in their own interest or the interest of individual shareholders or other parties. The supervisory board has
ensured formal and transparent procedures for the appointment of members of the management board and
the supervisory board and for the selection of senior management. Each individual member has the
appropriate expertise required for their specific duties. The company has ensured that shareholders and other
stakeholders have simple and non-discriminatory access to information about the company's ownership
structure, corporate governance mechanisms, and financial and operational results. Members of the
supervisory board and management must act with integrity and in accordance with the law and the company's
code of conduct and set an example for all employees with their behaviour. Compliance with high standards
of business ethics and transparency is ensured.
153
In the event of illegal behaviour or behaviour that violates internal rules, the Rules on the Internal Reporting
Procedure and the Appointment of a Confidential Person have been adopted, which are easily accessible
(General and Legal Affairs, Company website). The Rules clearly define the procedure for reporting
irregularities, including information on how to file a report, who to contact and what types of reports are
covered by the procedure. A Decision on the Appointment of a Confidential Person and their Deputy has
been adopted.
The company plans to train and raise awareness among its employees through education on whistleblower
rights, reporting procedures, and the importance of complying with whistleblower protection regulations.
154
A report on irregularities is prepared once a year and presented to the Company's Supervisory Board.
The group does not have an established anti-corruption policy but plans to establish one by the end of 2025.
155
The Group has established legal standards for financial reporting, which include the obligation to
transparently present operations and transactions. The above can help detect and prevent corruption.
It is necessary:
• establish and conduct regular internal audits and supervision to identify and correct potential
corruption risks,
• develop and implement a code of ethics that sets high standards of behaviour for all employees,
management personnel, suppliers and customers,
• clearly define responsibilities for violating anti-corruption policies and apply appropriate sanctions,
• ensure that the Company complies with all relevant laws and regulations on the fight against
corruption.
153
G1-1 9.
154
G1-1 10.a)
155
G1-1 10.b)
118
Whistleblowers are allowed to submit reports anonymously or with guaranteed confidentiality of their
identity. Whistleblowers are protected from all forms of retaliation, including dismissal, demotion, threats,
intimidation, discrimination or other adverse actions that would have a negative impact on their work or
professional status. The company is obliged to conduct a prompt, impartial and thorough investigation into
the whistleblower's allegations. The investigation must be conducted by independent persons, as this ensures
objectivity. Whistleblowers are provided with information about the progress and outcome of the
investigation. All employees are informed about the procedure and the designated person to whom they can
contact regarding the application through notice boards and internal notices.
156
The riskiest functions in terms of corruption and bribery have not been identified in the Group.
157
G1-2 Supplier relationship management
Internal acts establish the rules of conduct for internal participants in procurement processes. The Internal
Decision on Procedures during the Procurement Procedure and the Invitation to Submit Bids, as well as the
Bid Evaluation Form, define the criteria for selecting suppliers, tender procedures and the method of
evaluating bids.
All relations with suppliers are regulated by written contracts that define rights, obligations, prices, delivery
terms and payment methods. Contracts include clauses on quality, deadlines and liability in case of default.
158
The risk of delivery delays is addressed by supplier diversification and contractual penalty clauses.
The issue of the supplier's financial stability is carried out by checking the creditworthiness before concluding
a contract.
The group prefers to collaborate with multiple SME suppliers to reduce vulnerability.
The Group has not yet established social and environmental criteria as criteria for selecting suppliers.
159
160
156
G1-1 10 c) i. ii.
157
G1-1 10.h)
158
G1-2 14.
159
G1-2 15 a), b)
160
G1-6 33 a)
119
G1-6 Payment practices
In Čakovečki mlinovi Inc. - the average delay in paying invoices in 2024 is 5.46 days. It takes an average of
6 days from the day the invoice is entered into the system until it is posted. We do not have separate records
for partners by company size. In Trgovina Krk Inc. the average delay is 2 days, we also do not have data by
company size. For Radnik Opatija Inc. the following applies: for the main category of suppliers, which
accounts for 65% of annual invoices, the payment terms are defined by contracts. 19% are paid upon receipt
of the invoice, 43% of invoices are paid within 30 days, 10% within 15 days, 9% within 45 days, 9% within
60 days, while about 10% of invoices are paid within 7 to 20 days.
161
Regarding the payment terms, they are defined by contract and range from 30 days to 60 days. The average
payment days for Trgovina Krk Inc. and Čakovečke mlinove Inc. were calculated based on all invoices
received in 2024 that were paid by the date of analysis, while for Radnik Opatija Inc. the methodology is
described in detail above..
162
163
We have no ongoing proceedings related to late payment.
164
161
G1-6 33.a)
162
G1-6 33.b)
163
MDR-M 77.a), G1-6 33.d)
164
G1-6 33.c)
120
STATEMENT OF MANAGEMENT'S RESPONSIBILITY FOR THE SUSTAINABILITY
REPORT
In accordance with the provisions of Articles 32 and 36 of the Accounting Act (Official Gazette 135/24),
the Management Board of the Čakovečki mlinovi Group is responsible for the preparation of the
Consolidated Sustainability Report in accordance with the European Sustainability Reporting Standards
(ESRS), and for:
• preparing the disclosures in the section "Disclosures in accordance with Article 8 of Regulation
2020/852 (Taxonomy Regulation)" of the Consolidated Sustainability Report, in accordance with
the reporting requirements of Article 8 of Regulation (EU) 2020/852 (EU Taxonomy);
• designing, implementing and maintaining such internal control systems as the Management Board
considers necessary to ensure the preparation of the Consolidated Sustainability Report that is free
from material misstatement, whether due to fraud or error;
• selecting and applying appropriate sustainability reporting methods, as well as making reasonable
estimates and judgments regarding individual disclosures, considering the specific circumstances
of the Group's operations.
The Management Board is also responsible for the design and implementation of the process for identifying
information to be disclosed in the consolidated Sustainability Report in accordance with ESRS, and for
disclosing this process in the section “ESRS 2: IRO-1 – Description of the process for identifying and
assessing significant impacts, risks and opportunities” and “IRO-2 – Disclosure requirements in ESRS
included in the sustainability statement”.
This responsibility includes:
• understanding the context in which the Čakovečki mlinovi Group operates and its business
relationships and stakeholders;
• identifying actual and potential impacts, both negative and positive, related to sustainability
issues, as well as risks and opportunities that affect or could reasonably be expected to affect the
Group's financial position, operating results, cash flows, access to financing or cost of capital, in
the short, medium and long term;
• assessing the significance of identified impacts, risks and opportunities through the application of
appropriate materiality thresholds;
• making assumptions that are reasonable given the circumstances in which the Group operates.
The Consolidated Sustainability Report, which covers pages 26 to 119, has been approved by the
Management Board.
In Čakovec, 22 April 2025
For Čakovečki mlinovi d.d.:
The company was registered at Zagreb Commercial Court: MBS 030022053; paid-in initial capital: EUR 5,930.00; Company Directors: Katarina Kadunc, Goran Končar
and Helena Schmidt, Bank: Privredna banka Zagreb d.d., Radnička cesta 50, 10 000 Zagreb, bank account no. 2340009–1110098294; SWIFT Code: PBZGHR2X IBAN:
HR3823400091110098294.
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© 2025. For information, contact Deloitte Croatia.
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INDEPENDENT LIMITED ASSURANCE REPORT
To the Shareholders of Čakovečki mlinovi d.d.
We have conducted a limited assurance engagement on the Sustainability Report included in section Management
Report for the year 2024 of the Annual Report of Čakovečki mlinovi d.d. (the “Company”) and its subsidiaries (“the
Group”) as at 31 December 2024 and for the period from 1 January 2024 to 31 December 2024 (the “Sustainability
Statement”).
Identification of Applicable Criteria
The Sustainability Statement was prepared by the Management Board of the Company in order to satisfy the
requirements of article 32 and 36 of Accounting Act implementing 29(a) of the EU Directive 2013/34/EU, including:
• Compliance with the European Sustainability Reporting Standards introduced by Commission
Delegated Regulation (EU) of 31 July 2023 supplementing Directive 2013/34/EU of the European
Parliament and of the Council (“ESRS”), including that the process carried out by the Company to
identify the information reported in the Sustainability Statement (the “Process”) is in accordance
with the description set out in note ESRS 2 IRO-1; and
• Compliance of the disclosures in subsection Čakovečki mlinovi – consolidated disclosures in
accordance with article 8 of the Taxonomy regulation within the Sustainability Statement with
Article 8 of EU Regulation 2020/852 (the “Taxonomy Regulation”).
Inherent Limitations in Preparing the Sustainability Statement
The criteria, nature of the Sustainability Statement, and absence of long-standing established authoritative guidance,
standard applications and reporting practices allow for different, but acceptable, measurement methodologies to be
adopted which may result in variances between entities. The adopted measurement methodologies may also impact
the comparability of sustainability matters reported by different organizations and from year to year within an
organization as methodologies evolve.
In reporting forward looking information in accordance with ESRS, management of the Company is required to
prepare the forward-looking information on the basis of disclosed assumptions about events that may occur in the
future and possible future actions by the Group. Actual outcome is likely to be different since anticipated events
frequently do not occur as expected.
In determining the disclosures in the Sustainability Statement, management of the Company interprets undefined
legal and other terms. Undefined legal and other terms may be interpreted differently, including the legal conformity
of their interpretation and, accordingly, are subject to uncertainties.
This version of the independent limited assurance report is translation from the original, which was prepared in the Croatian language. All possible care has been
taken to ensure that the translation is an accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the
original language version of the report takes precedence over this translation.
5D3F03297FE8B5919175610E44DD3702
INDEPENDENT LIMITED ASSURANCE REPORT (continued)
Responsibility of the Management Board of the Company
Management of the Company is responsible for designing and implementing a process to identify the information
reported in the Sustainability Statement in accordance with the ESRS and for disclosing this process in note ESRS 2
IRO-1 of the Sustainability Statement. This responsibility includes:
• Understanding the context in which the Group’s activities and business relationships take place and
developing an understanding of its affected stakeholders;
• The identification of the actual and potential impacts (both negative and positive) related to sustainability
matters, as well as risks and opportunities that affect, or could reasonably be expected to affect, the Group’s
financial position, financial performance, cash flows, access to finance or cost of capital over the short,
medium, or long-term;
• The assessment of the materiality of the identified impacts, risks and opportunities related to sustainability
matters by selecting and applying appropriate thresholds; and
• Making assumptions that are reasonable in the circumstances.
Management of the Company is further responsible for the preparation of the Sustainability Statement, in
accordance with article 32 and 36 of Accounting Act implementing 29(a) of the EU Directive 2013/34/EU, including:
• Compliance with the ESRS;
• Preparing the disclosures in subsection Čakovečki mlinovi – consolidated disclosures in accordance with
article 8 of the Taxonomy regulation of the Sustainability Statement, in compliance with Article 8 of EU
Regulation 2020/852 (the “Taxonomy Regulation”);
• Designing, implementing and maintaining such internal controls that management determines are necessary
to enable the preparation of the Sustainability Statement that is free from material misstatement, whether
due to fraud or error; and
• The selection and application of appropriate sustainability reporting methods and making assumptions and
estimates about individual sustainability disclosures that are reasonable in the circumstances.
Those charged with governance are responsible for overseeing the Group’s sustainability reporting process.
Practitioner’s Responsibility
We conducted our limited assurance engagement in accordance with International Standard on Assurance
Engagements (ISAE) 3000 (Revised), Assurance Engagements other than Audits or Reviews of Historical Financial
Information.
The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent
than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance
engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance
engagement been performed.
Our objectives are to plan and perform the assurance engagement to obtain limited assurance about whether the
Sustainability Statement is free from material misstatement, whether due to fraud or error, and to issue a limited
assurance report that includes our conclusion. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence decisions of users taken
on the basis of the Sustainability Statement as a whole.
As part of a limited assurance engagement in accordance with ISAE 3000 (Revised) we exercise professional judgment
and maintain professional skepticism throughout the engagement.
5D3F03297FE8B5919175610E44DD3702
INDEPENDENT LIMITED ASSURANCE REPORT (continued)
Practitioner’s Responsibility (continued)
Our responsibilities in respect of the Sustainability Statement, in relation to the Process, include:
• Obtaining an understanding of the Process but not for the purpose of providing a conclusion on the
effectiveness of the Process, including the outcome of the Process; and
• Designing and performing procedures to evaluate whether the Process is consistent with the Group’s
description of its Process, as disclosed in note ESRS 2 IRO-1.
Our other responsibilities in respect of the Sustainability Statement include:
• Obtaining an understanding of the entity’s control environment, processes and information systems relevant
to the preparation of the Sustainability Statement but not evaluating the design of particular control
activities, obtaining evidence about their implementation or testing their operating effectiveness;
• Identifying disclosures where material misstatements are likely to arise, whether due to fraud or error; and
• Designing and performing procedures responsive to disclosures in the Sustainability Statement where
material misstatements are likely to arise. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
Our Independence and Quality Management
We complied with the applicable independence and other ethical requirements of the International Code of Ethics
for Professional Accountants (including International Independence Standards) issued by the International Ethics
Standards Board for Accountants (the “Code”). The Code is founded on fundamental principles of integrity, objectivity,
professional competence and due care, confidentiality and professional behavior.
We applied International Standard on Quality Management (ISQM) 1, Quality Management for Firms that Perform
Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements, and accordingly
maintain a comprehensive system of quality control including documented policies and procedures regarding
compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.
Summary of Work Performed
A limited assurance engagement involves performing procedures to obtain evidence about the Sustainability
Statement.
The nature, timing and extent of procedures selected depend on professional judgement, including the
identification of disclosures where material misstatements are likely to arise, whether due to fraud or error, in the
Sustainability Statement.
In conducting our limited assurance engagement, with respect to the Process, we:
- Obtained an understanding of the Process by:
o performing inquiries to understand the sources of the information used by management (e.g.,
stakeholder engagement, business plans and strategy documents); and
o reviewing the Group’s internal documentation of its Process; and
- Evaluated whether the evidence obtained from our procedures about the Process implemented by the
Group was consistent with the description of the Process set out in note ESRS 2 IRO-1.
5D3F03297FE8B5919175610E44DD3702
INDEPENDENT LIMITED ASSURANCE REPORT (continued)
Summary of Work Performed (continued)
In conducting our limited assurance engagement, with respect to the Sustainability Statement, we:
- Obtained an understanding of the Group’s reporting processes relevant to the preparation of its
Sustainability Statement by:
o performing inquiries to understand the Group’s control environment, processes and information
systems relevant to the preparation of the sustainability statements;
- Evaluated whether material information identified by the Process to identify the information reported in the
Sustainability Statement is included in the Sustainability Statement;
- Evaluated whether the structure and the presentation of the Sustainability Statement is in accordance with
the ESRS;
- Performed inquires of relevant personnel and analytical procedures on selected disclosures in the
Sustainability Statement;
- Performed substantive assurance procedures on a sample basis on selected disclosures in the Sustainability
Statement;
- Obtained evidence on the methods for developing material estimates and forward-looking information and
on how these methods were applied; and
- Obtained an understanding of the process to identify taxonomy-eligible and taxonomy-aligned economic
activities and the corresponding disclosures in the Sustainability Statement.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion.
Limited Assurance Conclusion
Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention
that causes us to believe that the Sustainability Statement is not prepared, in all material respects, in accordance
with article 32 and 36 of Accounting Act implementing 29(a) of the EU Directive 2013/34/EU, including:
• Compliance with the European Sustainability Reporting Standards (ESRS), including that the process carried
out by the Company to identify the information reported in the Sustainability Statement is in accordance
with the description set out in note ESRS 2 IRO-1; and
• Compliance of the disclosures in subsection Čakovečki mlinovi – consolidated disclosures in accordance with
article 8 of the Taxonomy regulation of the Sustainability Statement with Article 8 of EU Regulation 2020/852
(the “Taxonomy Regulation”).
5D3F03297FE8B5919175610E44DD3702
INDEPENDENT LIMITED ASSURANCE REPORT (continued)
Other Matter
Our assurance engagement does not extend to information in respect of earlier periods.
Goran Končar
Director and Certified auditor
Deloitte d.o.o.
22 April 2025
Radnička cesta 80,
10 000 Zagreb,
Croatia
This version of the independent limited assurance report is translation from the original, which was prepared in the Croatian language. All possible care has been taken
to ensure that the translation is an accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the original language
version of the report takes precedence over this translation
126
STATEMENT ON THE IMPLEMENTATION OF THE CORPORATE GOVERNANCE CODE FOR
2024
ČAKOVEČKI MLINOVI D.D.
CONSOLIDATED STATEMENT
ON THE APPLICATION OF THE GROUP'S
CODE CORPORATE GOVERNANCE
FOR 2024
127
Pursuant to Article 272p, and in conjunction with Article 250a(4) of the Constitution of the Republic of
Croatia. of the Companies Act (Official Gazette, No. 111/93, 34/99, 121/99, 52/00, 118/03, 107/07, 146/08,
137/09, 125/11, 152/11, 111/12, 68/13, 110/15, 40/19, 34/22, 114/22, 18/23, 130/23, 136/24; hereinafter:
ZTD) and Article 25 of the Companies Act. of the Accounting Act ("Official Gazette", No. 85/24, 145/24),
the Management Board of the company Čakovečki mlinovi d.d., Čakovec, Mlinska ulica 1, OIB:
20262622069 (hereinafter: the Company), gives the following
CONSOLIDATED STATEMENT
ON THE APPLICATION OF THE CORPORATE GOVERNANCE CODE
1. The Company voluntarily applies the Code of Corporate Governance jointly developed by the Croatian
Financial Services Supervisory Agency and the Zagreb Stock Exchange (hereinafter: the "Code"), which is
publicly available on the official website of the Zagreb Stock Exchange (www.zse.hr).
2. In the last year, the Company essentially applied the recommendations set out in the Code, publishing all
information whose publication is provided for by positive regulations and the publication of which
information is primarily in the interest of the Company's shareholders. The Supervisory Board of the
Company established the Nomination Committee and the Remuneration Committee, with the tasks stipulated
by the Code. At the same time, in accordance with the provisions of the Audit Act, the Audit Committee
operates in the Company.
Detailed explanations related to deviations from individual recommendations of the Code, the Company
presents in the Compliance Questionnaire for issuers of shares, which is submitted to the Croatian Financial
Services Supervisory Agency and is published on the official website of the Company (www.cak-mlinovi.hr)
as well as on the websites of the Zagreb Stock Exchange d.d. and the Croatian News Agency.
The Company plans to continue to make its operations and business results transparent and available to the
public during 2025.
3. Supervision over the management of the Company's affairs shall be carried out by the Supervisory Board
in accordance with the provisions of the Companies Act. The role of the Supervisory Board is also regulated
by the Company's Articles of Association. Members of the Supervisory Board regularly receive detailed
information on the management and operation of the Company in order to be able to effectively fulfil their
supervisory role. The report of the Supervisory Board on the supervision of the conduct of business shall be
submitted to the General Assembly.
The Audit Committee of the Company acts as an independent board. The Audit Committee provides support
to the Supervisory Board and the Management Board of the Company in the effective execution of corporate
governance, financial reporting and control Liabilities of the Company.
The Company applies the rules on the application of accounting policy, which rules govern the application
of procedures and techniques in the presentation of assets, liabilities, principal, income, expenses and
financial results of the Company in the basic financial statements.
A description of the basic features of risk management in relation to financial reporting is contained in note
32 – Risk exposure and risk management in the accompanying consolidated financial statements.
128
4. The ten largest shareholders, as at 31 December 2024:
Ord.
number
Shareholder
Number of
shares
Share in share
capital
1.
MLIN I PEKARE D.O.O.
3,208,066
31.18%
2.
OTP BANKA D.D./ AZ OMF CATEGORY B
2,853,265
27.73%
3.
ERSTE & STEIERMÄRKISCHE BANK D.D./ PBZ CO
OMF - KATEGORIJA B
2,391,539
23.24%
4.
ZAGREBAČKA BANKA D.D./ AZ PROFIT OPEN-
END VOLUNTARY PENSION FUND
302,624
2.94%
5.
OTP BANKA D.D./ AZ MANDATORY PENSION
FUND CATEGORY A
195,403
1.90%
6.
ERSTE & STEIERMARKISCHE BANK D.D./ PBZ CO
OMF - KATEGORIJA A
160,732
1.56%
7.
ZAGREBAČKA BANKA D.D./OMNINI CUSTONIČKI
ACCOUNT - DOMAĆA PRAVNA
61,534
0.60%
8.
ZAGREBAČKA BANKA D.D./ AZ BENEFIT OPEN-
END VOLUNTARY PENSION FUND (1/1)
60,858
0.59%
9.
FIMA-SECURITIES LTD./ NEKIĆ DANKA
46,500
0.45%
10.
OTP BANKA D.D./ OTP INDEKSNI FOND - OIF
WITH A PUBLIC OFFERING
39,656
0.39%
The Company is aware of the fact of the establishment of joint operations based on the Agreement on the
Regulation of Mutual Relations concluded on September 25, 2023 between the companies: Mlin i pekare
d.o.o., Sisak, OIB: 22260862756, Plodinec Ltd., Staro Čiče, OIB: 93116812695, Allianz ZB d.o.o. mandatory
and voluntary pension fund management company, Zagreb, OIB: 58384724129, in its own name, and on
behalf of certain pension funds under its management, and PBZ CROATIA OSIGURANJE d.d. for
management of mandatory pension funds, Zagreb, OIB: 20455535575, in its own name, and on behalf of
certain pension funds under its management. In accordance with the provision of Article 293a of the
Companies Act, and in connection with the transitional and final provisions of the Act on Amendments to
the Companies Act (Official Gazette 136/2024), Art. 37
th
, parag. 4, within the prescribed deadline, submit an
application for the registration of information on the existence of the Agreement on the Regulation of Mutual
Relations from 25 September 2023 in the court register, stating the purpose of that contract and the manner
of achieving that purpose.
The voting rights of the Company's shareholders are not limited to a certain percentage or number of votes
by the Company's Articles of Association of August 30,2023 which was applied during 2024 nor are their
time limits for exercising voting rights. Each ordinary share gives the right to one vote at the General
Assembly. The Company is authorized to issue ordinary registered shares as well as to issue other types and
types of shares in accordance with the positive regulations of the Republic of Croatia and the Company's
Articles of Association. The decision on the issue of shares, in accordance with Article 172 of the ZTD, is
made by the General Assembly, in accordance with the Company's Articles of Association. The rights and
obligations of the Company arising from the acquisition of own shares are exercised in accordance with the
provisions of the ZTD and in accordance with the decision of the General Assembly of the Company of 30
August 2021 on granting the Management Board of the Company the authority to acquire and dispose of own
shares for a period of five years from the date of the decision.
Amendments to the Company's Articles of Association shall be adopted in the manner determined by the
ZTD. During 2024 the General Assembly of the Company did not decide on amendments to the Company's
Articles of Association of August 30, 2023.
The General Assembly of the Company operates and has authorizations, and the shareholders exercise their
rights, in accordance with the provisions of Companies Act and other applicable regulations.
129
5. The Management Board of the Company consists of three members. On December 31, 2024 the function
of the President of the Management Board of the Company is performed by Mr. Mario Sedlaček, and the
functions of a member of the Management Board of the Company are performed by Mr. Marijan Sršen and
Mr. Krešimir Kvaternik. During 2024 the members of the Management Board shall conduct the Company's
affairs independently and on their own responsibility and represent the Company individually, and certain
tasks, exhaustively determined by Article 28 of the Act. of the Company's Articles of Association of August
30,2023and in other cases, when prescribed by law, the Company's Articles of Association, or a decision of
the Supervisory Board, they are authorized to undertake only with the prior consent of the Supervisory Board.
The Management Board is appointed and recalled by the Supervisory Board for a term of up to five years.
The Supervisory Board of the Company consists of 6 members.
Composition of the Supervisory Board of the Company as of 31 December 2024:
− Damir Metelko, President of the Supervisory Board,
− Franjo Plodinec, Deputy Chairman of the Supervisory Board,
− Igor Komorski, Member of the Supervisory Board,
− Josip Plodinec, Member of the Supervisory Board,
− Mislav Ante Omazić, Member of the Supervisory Board and
− Vanja Kutnjak, Member of the Supervisory Board, workers' representative.
Changes in the composition of the Management Board in 2024
− On March 6, 2024 Nino Varga, President of the Management Board of the Company, submitted his
resignation to the Supervisory Board;
− by the decision of the Supervisory Board of the Company of March 6, 2024 Krešimir Kvaternik was
appointed to the position of Deputy President of the Management Board, for the term of office from
March 7 to October 7, 2024 (the role of Krešimir Kvaternik as the President of the Supervisory
Board of the Company during the performance of the function of the Deputy President of the
Management Board is in the status of rest);
− by the decision of the Supervisory Board of the Company of October 7, 2024 Krešimir Kvaternik's
term of office as Deputy President of the Management Board was extended for the term of office
from October 8 to December 31, 2024 (for the same period of time, the status of suspension of
Krešimir Kvaternik's position as President of the Supervisory Board was continued);
− On November 28, 2024 Krešimir Kvaternik resigned from the position of Deputy President of the
Management Board of the Company (as well as from the position of member and President of the
Supervisory Board of the Company);
− By the decision of the Supervisory Board of the Company of November 28, 2024Mario Sedlaček
was appointed President of the Management Board of the Company, and Krešimir Kvaternik was
appointed a member of the Management Board. Both members of the Management Board were
appointed for a term of office starting from November 29, 2024 to December 31, 2026.
Changes in the composition of the Supervisory Board in 2024
− in the free and direct elections of employees, Vanja Kutnjak was elected as the employee
representative to the Supervisory Board of the Company, for a term of 4 years, starting from March
22, 2024replacing the former representative Lidija Posavec;
− On 26 July 2024 Katarina Varga, a member of the Supervisory Board, the Audit Committee, the
Nomination Committee and the Remuneration Committee, resigned from the Supervisory Board and
its subcommittees as of 28 August 2024;
− by the decision of the General Assembly of the Company of August 28, 2024 Josip Plodinec, Franjo
Plodinec and Mislav Ante Omazić were appointed to the Supervisory Board;
− On November 28, 2024 Krešimir Kvaternik resigned from the position of member and chairman of
the Supervisory Board and subcommittee of the Supervisory Board (he also resigned from the
position of deputy chairman of the Management Board of the Company). Krešimir Kvaternik's
position in the Supervisory Board and its subcommittees in the period from 7 March to 28 November
2024 was suspended for the purpose of performing the function of Deputy President of the
Management Board of the Company.
130
As per the Articles of Association of the Company as of 30 august 2023, the General Assembly elects and
dismisses six members of the Supervisory Board, while one member of the Supervisory Board is elected,
appointed and recalled by the employees of the Company in the manner determined by the regulations of the
Republic of Croatia. The Supervisory Board acts as a collegial body at meetings held at least once quarterly,
where it discusses and decides on all issues within its competence prescribed by the Companies Act and the
Articles of Association of the Company. Decisions of the Supervisory Board shall be made by a majority of
the votes cast except in cases where the Statute of the Company for decision-making provides for anything
else.
All members of the Supervisory Board are also members of the Audit Committee.
The same members of the Supervisory Board have been appointed to the Nomination Committee and the
Remuneration Committee.
There are no restrictions in the executive, management, and supervisory bodies, as well as at all other levels
of the Company, regarding gender, age, education, profession, or other similar restrictions.
On General Assembly held on January 15,2025 Decision on amendments of the Article of Association of the
Company was passed, as per which significant changes were done in part related to responsibilities and
limitations of the Management Board, and responsibilities of the Supervisory Board and General Assembly
of the Company.
6. In accordance with the provisions of Article 250 paragraph 4 and Article 272 of the Companies Act, this
Statement is a separate section and an integral part of the consolidated annual report on the Group's status for
the year 2024.
In Čakovec, April 22, 2025
For Čakovečki mlinovi d.d.:
131
FINANCIAL STATEMENTS FOR 2024
ČAKOVEČKI MLINOVI D.D.
CONSOLIDATED
FINANCIAL STATEMENTS
FOR YEAR 2024
132
RESPONSIBILITY OF THE MANAGEMENT BOARD
FOR THE PREPARATION AND APPROVAL OF THE ANNUAL REPORT
The Management Board of Čakovečki mlinovi d.d., as the Management Board of the parent company of the
Group (the "Management Board"), is obliged to prepare consolidated financial statements for each business
year, which give a true and faithful view of the Group's financial position and the results of its operations
and cash flow, in accordance with applicable accounting standards, and is responsible for keeping appropriate
accounting records that enable the preparation of financial statements at all times.
The Management Board is responsible for selecting appropriate accounting policies that are in accordance
with the International Financial Reporting Standards adopted in the European Union and for their consistent
application, making reasonable and prudent judgments and estimates, and preparing financial statements
based on the going concern principle, unless the assumption that the Group will continue to operate is
inappropriate.
The Management Board reasonably expects that the Group has adequate funds to continue operations in the
foreseeable future. For this reason, the Management Board continues to accept the principle of unlimited
operating time in the preparation of consolidated financial statements.
The Management Board's responsibilities in preparing the consolidated financial statements include the
following:
− the selection and consistent application of appropriate accounting policies;
− making reasonable and prudent judgments and assessments;
− acting in accordance with applicable accounting standards, and
− Preparation of financial statements under the assumption of indefinite time of business.
In accordance with the Accounting Act, the Management Board is obliged to prepare an Annual Report
containing annual financial statements, management report and corporate governance statement. The
Management Report and the Corporate Governance Statement have been prepared in accordance with the
requirements of Articles 21, 22, 24 and 25 of the Accounting Act. Also, the Management Board is responsible
for the preparation of the Sustainability Report, in accordance with Articles 32 and 36 of the Sustainability
Act. Accounting Act implementing Article 29(a) of EU Directive 2013/34/EU. The Management Board has
the overall responsibility for taking steps reasonably available to it to enable it to safeguard the Group's assets
and to prevent and detect fraud and other irregularities.
The Management Board is responsible for submitting the Group's Annual Report, which includes the annual
financial statements, to the Supervisory Board, after which the Supervisory Board needs to approve them for
submission to the General Meeting of Shareholders for acceptance.
Consolidated financial statements are prepared in accordance with the International Financial Reporting
Standards adopted by the European Union ("IFRS"), presented on the following pages, are approved by the
Management Board as of 22 April 2025 and submitted to the Supervisory Board for approval.
In Čakovec, April 22, 2025
For Čakovečki mlinovi d.d.:
133
STATEMENT OF RESPONSIBLE PERSONS
FOR THE PREPARATION OF FINANCIAL STATEMENTS
Based on the provisions of Article 462. of the Capital Market Act (Official Gazette 65/18, 17/20, 83/21,
151/22, 85/24), the President of the Management Board of the Company, Mario Sedlaček, and the members
of the Management Board of the Company, Marijan Sršen and Krešimir Kvaternik, give the following
statement:
To the best of our knowledge:
- The consolidated financial statements for 2024 have been prepared in accordance with IFRS and provide
an objective view of the issuer's assets and liabilities, financial position, profit or loss.
- The Consolidated Management Report for 2024 contains a truthful view of the development and results of
operations and the position of issuers and companies included in the consolidation as a whole, with a
description of the most significant risks and uncertainties to which they are exposed.
In Čakovec, April 22, 2025
For Čakovecke mlinovi d.d.:
The company was registered at Zagreb Commercial Court: MBS 030022053; paid-in initial capital: EUR 5,930.00; Company Directors: Katarina Kadunc, Goran Končar
and Helena Schmidt, Bank: Privredna banka Zagreb d.d., Radnička cesta 80, 10 000 Zagreb, bank account no. 2340009–1110098294; SWIFT Code: PBZGHR2X IBAN:
HR3823400091110098294.
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entities, which cannot obligate or bind each other in respect of third parties. DTTL and each DTTL member firm and related entity is liable only for its own acts and
omissions, and not those of each other. DTTL does not provide services to clients. Please see www.deloitte.com/en/about to learn more.
© 2025. For information, contact Deloitte Croatia.
EFF2D9C750A6AC81821707F9C1015B68
Deloitte d.o.o.
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10 000 Zagreb
Croatia
TAX ID: 11686457780
Tel: +385 (0) 1 2351 900
Fax: +385 (0) 1 2351 999
www.deloitte.com/hr
INDEPENDENT AUDITOR’S REPORT
To the Shareholders of Čakovečki mlinovi d.d.
Report on the Audit of the Financial Statements
Opinion
We have audited the consolidated financial statements of Čakovečki mlinovi d.d. and its subsidiaries (the Group)
which comprise the consolidated statement of financial position as at 31 December 2024, the consolidated statement
of comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash
flows for the year then ended, and notes to the consolidated financial statements, including material accounting
policy information.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the
consolidated financial position of the Group as at 31 December 2024, and its consolidated financial performance and
its consolidated cash flows for the year then ended in accordance with International Financial Reporting Standards
as adopted by the European Union (IFRS).
Basis for Opinion
We conducted our audit in accordance with the International Standards on Auditing (ISAs) and Regulation (EU)
537/2014 of the European Parliament and of the Council, dated 16 April 2014, on specific requirements regarding
statutory audit of public-interest entities. Our responsibilities under those standards are further described in the
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are
independent of the Group in accordance with the International Ethics Standards Board for Accountants’ International
Code of Ethics for Professional Accountants, including International Independence Standards (IESBA Code) and we
have fulfilled our ethical responsibilities in accordance with the IESBA Code. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matter
Key audit matter is that matters that, in our professional judgment, was of most significance in our audit of the
consolidated financial statements of the current period. That matter was addressed in the context of our audit of the
consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on that matter.
This version of the auditor`s report is translation from the original, which was prepared in the Croatian language. All possible care has been taken to ensure that the
translation is an accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of the
report takes precedence over this translation.
EFF2D9C750A6AC81821707F9C1015B68
INDEPENDENT AUDITOR’S REPORT (continued)
Report on the Audit of the Financial Statements (continued)
Key Audit Matter (continued)
Recognition of sales revenue
For the accounting framework see Note 2 “Significant accounting policies“, section 2.17 „Revenue recognition“.
For additional information related to the identified key audit matter, see note 4 to the consolidated financial
statements.
Description of the Key audit matter
How we addressed Key audit matter
As of 31 December 2024, sales revenue amounted to
EUR 200,450 thousand (2023: EUR 193,148 thousand).
In accordance with International Financial Reporting
Standard 15 - Revenue from Contracts with Customers
("IFRS 15"), the Company recognizes sales revenue
when control of the products and goods is transferred
to the customer, or when the obligation is fulfilled, in
an amount that represents the consideration to which
the Company expects to be entitled in exchange for the
agreed products and goods.
Revenue is measured on a net basis, net of rebates and
other trade allowances to customers. Management
includes various judgments when estimating rebates
due to the complex nature of trade agreements and
customer relationships.
The timing of revenue recognition is affected by
different shipping terms agreed with different
customers, and the risk of recognizing sales revenue in
the wrong period is higher at year-end.
Sales revenue is one of the key performance indicators
of the Company and the Management Board, and as
such is exposed to the risk of Management's override
to encourage the recognition of revenue before the
conditions are created and before the transfer of
control over products and goods to the customer.
We consider this area to be a key audit matter during
our audit of the separate financial statements for the
year ended 31 December 2024 due to the possible
significant effects on the financial statements if
revenue is not properly calculated and recognized in a
timely manner.
In order to respond to the risks associated with sales
revenue, identified as a key audit matter, we designed
audit procedures that enabled us to obtain sufficient
appropriate audit evidence to form our conclusion on
this matter.
We performed the following audit procedures with
respect to the area of sales revenue:
• Reviewed and inspected accounting policies applied
for revenue recognition, and comparing them with the
requirements of IFRS 15 – Revenue from Contracts with
Customers;
• Obtained an understanding of the control
environment and internal controls established by the
Management Board in the process of recognizing sales
revenue, including the information technology
applications and tools used;
•Verified the adequacy of the design and effectiveness
of the implementation of the identified internal
controls relevant to the revenue recognition process;
• Determined the scope and type of substantive testing
to verify the correctness of the calculation and
recognition of sales revenue;
• Substantive testing of the recognition and
measurement of sales revenue on a selected sample,
with which we verified the accuracy and timeliness of
revenue recognition;
• Review and vitrification of the sufficiency of
disclosures in accordance with the requirements of
IFRS 15 - Revenue from contracts with customers.
EFF2D9C750A6AC81821707F9C1015B68
INDEPENDENT AUDITOR’S REPORT (continued)
Report on the Audit of the Financial Statements (continued)
Other Matter
Consolidated financial statements of the Group for the year ended 31 December 2023 have been audited by other
auditor, who issued unmodified opinion on those consolidated financial statements as of April 26, 2024.
Other Information
Management is responsible for the other information. The other information comprises the information included in
the Annual Report but does not include the consolidated financial statements and our auditor’s report.
Our opinion on the consolidated financial statements does not cover the other information.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the consolidated
financial statements, or our knowledge obtained in the audit or otherwise appears to be materially misstated. With
respect to the Management Report, the Corporate Governance Report, which is included in the Annual Report, we
have also performed the other procedures prescribed by the Accounting Act. These procedures include examination
of whether the Management Report include required disclosures as set out in the Articles 22 and 24 of the Accounting
Act and whether the Corporate Governance Report includes the information specified in the Articles 22 and 25 of the
Accounting Act.
Based on the procedures performed during our audit, to the extent we are able to assess it, we report that:
1) Information included in the other information is, in all material respects, consistent with the attached
consolidated financial statements.
2) Management Report has been prepared, in all material respects, in accordance with the Articles 22 and 24
of the Accounting Act, which is included as part of the other information and constitutes a separate part of
the Management Report, we performed a limited assurance engagement, the results of which were
presented in a separate limited assurance report with an unmodified conclusion.
3) Corporate Governance Report has been prepared, in all material aspects, in accordance with the Articles 22
and 25 of the Accounting Act.
Based on the knowledge and understanding of the Group and its environment, which we gained during our audit of
the consolidated financial statements, we have not identified material misstatements in the other information.
Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in
accordance with IFRSs and for such internal control as Management determines is necessary to enable the
preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the consolidated financial statements, Management is responsible for assessing the Group’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless Management either intends to liquidate the Group or to cease operations, or has no
realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group’s financial reporting process.
EFF2D9C750A6AC81821707F9C1015B68
INDEPENDENT AUDITOR’S REPORT (continued)
Report on the Audit of the Financial Statements (continued)
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in
accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud
or error and are considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the Group's internal controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by Management.
• Conclude on the appropriateness of Management’s use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that
may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditor’s report to the related
disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated financial statements, including
the disclosures, and whether the consolidated financial statements represent the underlying transactions
and events in a manner that achieves fair presentation.
• Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial
information of the entities or business units within the group as a basis for forming an opinion on the group
financial statements. We are responsible for the direction, supervision and review of the audit work
performed for purposes of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence and communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of
most significance in the audit of the consolidated financial statements of the current period and are therefore the
key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
EFF2D9C750A6AC81821707F9C1015B68
INDEPENDENT AUDITOR'S REPORT (continued)
Report on Other Legal and Regulatory Requirements
Report based on the requirements of Delegated Regulation (EU) No. 2018/815 amending Directive No.
2004/109/EC of the European Parliament and of the Council as regards regulatory technical standards for the
specification of the uniform electronic format for reporting (ESEF)
Auditor’s reasonable assurance report on the compliance of consolidated financial statements (financial statements),
prepared based on the provision of Article 462 (5) of the Capital Market Act by applying the requirements of the
Delegated Regulation (EU) 2018/815 specifying for the issuers a single electronic reporting format (“ESEF
Regulation”). We conducted a reasonable assurance engagement on whether the financial statements of the
Čakovečki mlinovi Group for the financial year ended 31 December 2024 prepared to be made public pursuant to
Article 462 (5) of the Capital Market Act, contained in the electronic file CKMLgroup-2024-12-31-eng.zip, have been
prepared in all material aspects in accordance with the requirements of the ESEF Regulation.
Responsibilities of the Management and Those Charged with Governance
Management is responsible for the preparation and content of the financial statements in line with the ESEF
Regulation.
In addition, Management is responsible for maintaining the internal controls system that reasonably ensures the
preparation of financial statements without material differences with the reporting requirements from the ESEF
Regulation, whether due to fraud or error.
Furthermore, Management is responsible for the following:
• public reporting of financial statements presented in the Annual Report in valid XHTML format
• selection and use of XBRL markups in line with the requirements of the ESEF Regulation.
Those charged with governance are responsible for supervising the preparation of financial statements in ESEF format
as part of the financial reporting process.
Auditor’s Responsibilities
It is our responsibility to carry out a reasonable assurance engagement and, based on the audit evidence obtained,
give our conclusion on whether the financial statements have been prepared without material differences with the
requirements from the ESEF Regulation. We conducted our reasonable assurance engagement in accordance with
the International Standard on Assurance Engagements 3000 (Revised) – Assurance Engagements Other than Audits
or Reviews of Historical Financial Information (ISAE 3000). This standard requires that we plan and perform the
engagement to obtain reasonable assurance for providing a conclusion.
Quality management
We have conducted the engagement in compliance with independence and ethical requirements as provided by the
Code of Ethics for Professional Accountants (including International Independence Standards) issued by the
International Ethics Standards Board for Accountants. The code is based on the principles of integrity, objectivity,
professional competence and due diligence, confidentiality, and professional conduct. We comply with the
International Standard on Quality Management 1, Quality Management for Firms that Perform Audits and Reviews
of Financial Statements, and Other Assurance and Related Services Engagements (ISQM 1) and accordingly maintain
an overall management control system, including documented policies and procedures regarding compliance with
ethical requirements, professional standards, and applicable legal and statutory requirements.
EFF2D9C750A6AC81821707F9C1015B68
INDEPENDENT AUDITOR'S REPORT (continued)
Report on Other Legal and Regulatory Requirements (continued)
Report based on the requirements of Delegated Regulation (EU) No. 2018/815 amending Directive No.
2004/109/EC of the European Parliament and of the Council as regards regulatory technical standards for the
specification of the uniform electronic format for reporting (ESEF) (continued)
Procedures performed
As part of the selected procedures, we have conducted the following activities:
• We have read the requirements of the ESEF Regulation;
• We have gained an understanding of internal controls of the Group, relevant for the application of the ESEF
Regulation requirements;
• We have identified and assessed the risks of material differences with the ESEF Regulation due to fraud or
error;
• We have devised and designed procedures for responding to estimated risks and obtaining reasonable
assurance in order to give our conclusion.
Our procedures focused on assessing whether:
• Financial statements included in the consolidated report have been prepared in valid XHTML format;
• Data included in the consolidated financial statements required by the ESEF Regulation have been marked
up and meet all of the following requirements:
o XBRL has been used for markups.
o Core taxonomy elements stipulated in the ESEF Regulation with the closest accounting meaning
were used unless an extension taxonomy element was created in line with the Annex IV of the ESEF
Regulation;
o Markups comply with the common rules on markups in line with the ESEF Regulation.
We believe the evidence we obtained to be sufficient and appropriate to provide a basis for our conclusion.
Conclusion
We believe that, based on the procedures performed and evidence obtained, the financial statements of the Group
presented in the ESEF format, contained in the aforementioned electronic file, and based on the provision of Article
462 (5) of the Capital Market Act, have been prepared to be published for public, in all material aspects in accordance
with the requirements of articles 3, 4 and 6 of the ESEF Regulation for the year ended 31 December 2024.
In addition to this conclusion, as well as the audit opinion contained in this Independent Auditor's Report for the
accompanying financial statements and Annual Report for the year ended 31 December 2024, we do not express any
opinion on the information contained in these documents or other information contained in the above-mentioned
file.
EFF2D9C750A6AC81821707F9C1015B68
INDEPENDENT AUDITOR’S REPORT (continued)
Report on Other Legal and Regulatory Requirements (continued)
Other reporting obligations as required by Regulation (EU) No. 537/2014 of the European Parliament and the
Council and the Audit Act
We were appointed as the statutory auditor of the Group by the on General Shareholders’ Meeting held on 28 August
2024 to perform audit of accompanying consolidated financial statements. Our total uninterrupted engagement has
lasted one year and covers period 1 January 2024 to 31 December 2024.
We confirm that:
• our audit opinion on the accompanying consolidated financial statements is consistent with the additional
report issued to the Audit Committee of the Group on 22 April 2025 in accordance with the Article 11 of
Regulation (EU) No. 537/2014 of the European Parliament and the Council;
• no prohibited non-audit services referred to in the Article 5(1) of Regulation (EU) No. 537/2014 of the
European Parliament and the Council were provided.
There are no services, in addition to the statutory audit, which we provided to the Company and its controlled
undertakings, and which have not been disclosed in the Annual Report.
The engagement partner on the audit resulting in this independent auditor’s report is Goran Končar.
Goran Končar
Director and certified auditor
Deloitte d.o.o.
22 April 2025
Radnička cesta 80,
10 000 Zagreb,
Croatia
This version of the auditor`s report is translation from the original, which was prepared in the Croatian language. All possible care has been taken to ensure that the
translation is an accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of the
report takes precedence over this translation
ČAKOVEČKI MLINOVI D.D., ČAKOVEC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
(all amounts are presented in thousands of euros)
141
Note | 2024 | 2023 | |
Sales revenue | 4 | ||
Other income | 4 | ||
Operating income | |||
Change in the value of inventories of work in progress and finished products | 5 | ( | |
Costs of raw materials, materials, energy and raw materials | 6 | ( | ( |
Cost of goods sold | ( | ( | |
Other external costs | 7 | ( | ( |
Personnel costs | 8 | ( | ( |
Depreciation | 16,17,18 | ( | ( |
Other costs | 9 | ( | ( |
Value adjustments | 10 | ( | ( |
Reserve | 11 | ( | ( |
Other operating expenses | 12 | ( | ( |
Operating expenses | ( | ( | |
Operating profit | |||
Financial income | 13 | ||
Financial expenditures | 13 | ( | ( |
Net financial result | |||
Share of profits of the associate | 19 | ||
Profit before tax | |||
Corporate Income Tax | 14 | ( | ( |
Net profit | |||
Attributed: | |||
To the Company's shareholders | |||
Owners of non-controlling shares | |||
Earnings per share for profit attributable to the Company's shareholders during the year | |||
(in euros) | |||
-Basic | 15 | ||
-Diluted | 15 |
ČAKOVEČKI MLINOVI D.D., ČAKOVEC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
(all amounts are presented in thousands of euros)
142
Note | 2024 | 2023 | |
Net profit | |||
Other comprehensive gains: | |||
Items that will not be reclassified in profit or loss | |||
Fair valuation of stocks | |||
Total Other Comprehensive Profit for the Year, Net Tax | |||
Total comprehensive profit for the year | |||
Attributed: | |||
To the Company's shareholders | |||
Owners of non-controlling shares |
The accounting policies and notes below form an integral part of these financial statements.
ČAKOVEČKI MLINOVI D.D., ČAKOVEC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
ON 31 DECEMBER 2024
(all amounts are presented in thousands of euros)
143
Note | 31/12/2024 | 31/12/2023 | |
Assets | |||
Fixed assets | |||
Intangible assets | |||
Tangible assets | 16 | ||
Property with the right of use | 17 | ||
Real Estate Investments | 18 | ||
Investments in associates | 19 | ||
Financial assets | 20 | ||
Receivables | 23 | ||
Deferred tax assets | 21 | ||
Current assets | |||
Inventories | 22 | ||
Non-current assets held for sale | 22 | ||
Trades and other receivables | 23 | ||
Financial assets | 24 | ||
Cash and cash equivalents, | 25 | ||
TOTAL ASSETS |
Note | 31/12/2024 | 31/12/2023 | |
Capital and reserves, | |||
Share capital | 26 | ||
Reserves | 26 | ||
Fair value reserves | 26 | ||
Retention | 26 | ||
To owners of non-controlling shares | 26 | ( | ( |
Commitments | |||
Long-term liabilities | |||
Reserve | 27 | ||
Rental obligations | 28 | ||
Loan liabilities | 28 | ||
Deferred tax liability | 29 | ||
Short-term liabilities | |||
Provisions | 27 | ||
Lease liabilities | 28 | ||
Borrowings | 28 | ||
Trade payable | 30 | ||
Employee benefit obligations | 30 | ||
Income tax payable | 30 | ||
Taxes, contributions, and other duties payable | 30 | ||
Liabilities for advances | 30 | ||
Liabilities from equity share in profit | 30 | ||
TOTAL LIABILITIES AND CAPITAL |
The accounting policies and notes below form an integral part of these financial statements.
ČAKOVEČKI MLINOVI D.D., ČAKOVEC
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
(all amounts are presented in thousands of euros)
144
Note | 2024 | 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Profit before tax | |||
Adjustments: | |||
Amortization | 16 | ||
Impairment losses and (gains)/losses on disposal of assets | ( | ||
assets | |||
Value reconciliation of accounts receivable and inventory | 10 | ||
Share in the profit of the associated company | 19 | ( | ( |
Income from interest and dividends | 13 | ( | ( |
Interest expenses | 13 | ||
Provisions | 11,27 | ||
Increase in cash flows before changes in working capital | |||
Changes in working capital | |||
(Decrease) in liabilities | ( | ( | |
Increase in receivables | |||
Decrease in inventory | 22 | ||
Cash generated from operations | |||
Cash paid for interest | ( | ( | |
Paid income tax | ( | ( | |
NET CASH FLOWS FROM OPERATING ACTIVITIES | |||
CASH FLOWS FROM INVESTMENT ACTIVITIES | |||
Cash proceeds from the sale of non - current assets | |||
Cash proceeds from interest | |||
Cash proceeds from dividends | |||
Cash proceeds from loans and deposits | |||
Other cash paid from investment activities | ( | ( | |
Other cash proceeds from investment activities | |||
Cash paid for squeezing out of minority shareholders | ( | ||
Cash paid for buying current asset | ( | ( | |
NET CASH FLOWS FROM INVESTING ACTIVITIES | ( | ( | |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Repaying the principal of loans and credits | 28 | ( | ( |
Repayment of leases liabilities principal amount | 28 | ( | ( |
Dividend paid | 26 | ( | - |
NET CASH FLOWS FROM FINANCIAL ACTIVITIES | ( | ( | |
TOTAL NET CASH FLOW | |||
Cash and cash equivalents at the beginning of the period | |||
Cash and cash equivalents at the end of the period | 25 |
The accounting policies and notes below form an integral part of these financial statements.
ČAKOVEČKI MLINOVI D.D., ČAKOVEC
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
(all amounts are presented in thousands of euros)
145
Attributable to the capital holders of the parent company
The accounting policies and notes below form an integral part of these financial statements.
Share | Legal | Other | Fair value | Retention | Altogether | Non-controlling | Altoget | |
capital | reserves | reserves | reserves | shares | her | |||
Balance on 1/1/2023 | ( | |||||||
Profit/(loss) of the financial year | ||||||||
Other Comprehensive income | ||||||||
Total Comprehensive income | - | |||||||
Dividend | ( | |||||||
Other changes in equity | - | ( | ( | ( | ( | |||
As of 31/12/2023 | ( | |||||||
Balance on 1.1.2024. | ( | |||||||
Transfer to retained earnings | ( | |||||||
Profit/(loss) of the financial year | ||||||||
Other Comprehensive income | ||||||||
Total Comprehensive income | ( | |||||||
Dividend | ( | ( | ( | |||||
Other changes in equity | ||||||||
As of 31/12/2024 | ( |
ČAKOVEČKI MLINOVI D.D., ČAKOVEC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(all amounts are presented in thousands of euros)
146
ČAKOVEČKI MLINOVI D.D., ČAKOVEC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
(all amounts are presented in thousands of euros)
147
Direct | Direct | |||||
ownership/ | ownership/ | |||||
Name | Headquarters | Principal | Accounting | Voting | Voting | |
activity | method | |||||
rights | rights | |||||
31/12/2024 | 31/12/2023 | |||||
Trgovina Krk d.d. | Malinska, | Retail trade | Directly | 100% | 100% | |
Croatia | ||||||
Trgocentar d.d. | Virovitica, | Rental | Indirectly | 49.55% / | 49.55% / | |
Croatia | properties | 52.03 % | 52.03 % | |||
Narodni | trgovački | Soblinec, | Wholesale | |||
lanac d.o.o. | Croatia | and retail | Indirectly | 25% | 25% | |
trade | ||||||
Radnik Opatija d.d. | Lovran, Croatia | Bakery | Directly | 100% | 100% |
ČAKOVEČKI MLINOVI D.D., ČAKOVEC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
(all amounts are presented in thousands of euros)
148
ČAKOVEČKI MLINOVI D.D., ČAKOVEC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
(all amounts are presented in thousands of euros)
149
Construction facilities | 10 – 40 years | 2.5 % - 10% |
Plant and equipment | 2 – 10 years | 10% - 50% |
Tools, Operating Inventory & Transport Assets | 4 – 5 years | 20% - 25% |
ČAKOVEČKI MLINOVI D.D., ČAKOVEC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
(all amounts are presented in thousands of euros)
163
ČAKOVEČKI MLINOVI D.D., ČAKOVEC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
(all amounts are presented in thousands of euros)
164
ČAKOVEČKI MLINOVI D.D., ČAKOVEC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
(all amounts are presented in thousands of euros)
166
ČAKOVEČKI MLINOVI D.D., ČAKOVEC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
(all amounts are presented in thousands of euros)
167
2024 | 2023 | |
Revenues from the sale of goods | 174,589 | 168,109 |
Revenue from the sale of products | 25,384 | 24,384 |
Rental income | 328 | 377 |
Income from other services | 98 | 176 |
Other sales revenues | 51 | 102 |
Total sales revenue | 200,450 | 193,148 |
2024 | 2023 | |
Sales Revenue - Retail | 169,917 | 162,271 |
Sales revenues - wholesale | 30,533 | 30,877 |
Total sales revenue | 200,450 | 193,148 |
2024 | 2023 | |
Revenue from sales in the domestic market | 199,207 | 191,284 |
Revenue from sales on the foreign market | 1,243 | 1,864 |
Total sales revenue | 200,450 | 193,148 |
2024 | 2023 | |
Up to one year | 542 | 538 |
Between one and two years | 442 | 494 |
Between two and three years | 345 | 313 |
Between three and four years | 276 | 230 |
Between four and five years | 186 | 147 |
Over five years | 90 | 130 |
Total gross | 1,881 | 1,852 |
2024 | 2023 | |
Income from operating lease | 328 | 377 |
Total gross | 328 | 377 |
ČAKOVEČKI MLINOVI D.D., ČAKOVEC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
(all amounts are presented in thousands of euros)
168
2024 | 2023 | ||||||||
Fees for assortment, position and advertising of goods, etc. | 5,112 | 4,778 | |||||||
Revenue from surpluses | 511 | 329 | |||||||
Compensation for damages – insurance | 72 | 147 | |||||||
Income from the sale of assets and raw materials | 65 | 73 | |||||||
Revenue | from | the | cancellation | of | provisions | and | value | ||
adjustments | - | 107 | |||||||
Revenues from collected written off receivables, etc. | 19 | 37 | |||||||
State grants, donations, awards, subsidies, etc. | 15 | 182 | |||||||
Other income | 878 | 817 | |||||||
Total Other Operating Income | 6,673 | 6,470 |
ČAKOVEČKI MLINOVI D.D., ČAKOVEC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
(all amounts are presented in thousands of euros)
169
Trade | Food | Eliminations | Consolidation | |
Operating revenues | 183,567 | 33,916 | (10,360) | 207,123 |
Operating profit before depreciation | ||||
and amortization by segment | 10,760 | 3,253 | (761) | 13,252 |
Amortization | 7,030 | 911 | (686) | 7,254 |
Financial revenue | 1,066 | |||
Financial expenses | (137) | |||
Share in the profit of the associated | ||||
company | 1,287 | |||
Profit before tax | 8,213 | |||
Profit tax | (1,407) | |||
Profit of the current year | 6,806 |
Trade | Food | Eliminations | Consolidation | |||
Operating revenues | 176,421 | 34,015 | (10,818) | 199,618 | ||
Operating | profit | before | ||||
depreciation by segment | 12,989 | 2,626 | (698) | 14,917 | ||
Amortization | 7,199 | 1,131 | (623) | (7,707) | ||
Financial revenue | 422 | |||||
Financial expenses | (166) | |||||
Share in the profit of the associated | ||||||
company | 1,336 | |||||
Profit before tax | 8,802 | |||||
Profit tax | (1,547) | |||||
Profit of the current year | 7,255 |
ČAKOVEČKI MLINOVI D.D., ČAKOVEC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
(all amounts are presented in thousands of euros)
170
2024 | 2023 | |
Raw materials and production materials | 16,721 | 19,023 |
Energy | 5,654 | 5,886 |
Spare parts and small inventory | 774 | 192 |
Total cost of raw materials | 23,149 | 25,101 |
2024 | 2023 | |
Transport and telecommunication | 1,868 | 1,658 |
services | ||
Maintenance and service services | 1,708 | 1,516 |
Utilities | 1,157 | 652 |
Intellectual services and education | 867 | 1,142 |
Advertising | 739 | 582 |
Rental costs | 431 | 256 |
Student services | 401 | 141 |
Asset protection services | 338 | 362 |
Other services | 461 | 346 |
Total other external costs | 7,970 | 6,655 |
ČAKOVEČKI MLINOVI D.D., ČAKOVEC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
(all amounts are presented in thousands of euros)
171
2024 | 2023 | |
Net salaries | 21,901 | 18,945 |
Contributions and taxes from salaries | 6,833 | 6,032 |
Contributions on salary | 4,611 | 3,912 |
Total staff costs | 33,345 | 28,889 |
2024 | 2023 | |
Reimbursement of employee expenses, gifts and assistance | 5,160 | 4,632 |
Banking services and payment transaction costs | 1,030 | 931 |
Contributions, membership fees and taxes that do not depend | ||
on the business result | 291 | 659 |
Insurance cost | 275 | 277 |
Supervisory fees | 132 | 97 |
Advertising costs | 79 | 67 |
Daily allowances and other costs of business trips | 47 | 39 |
Legal costs, fees and dunning costs | - | 16 |
Other miscellaneous costs | 586 | 338 |
Total other costs | 7,600 | 7,056 |
2024 | 2023 | |
Value adjustment of current assets | 154 | 191 |
Total value alignment | 154 | 191 |
2024 | 2023 | |
Provisions for jubilee awards | 114 | 89 |
Accruals for unused vacations | 5 | 12 |
Total provisions | 119 | 101 |
ČAKOVEČKI MLINOVI D.D., ČAKOVEC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
(all amounts are presented in thousands of euros)
172
2024 | 2023 | |||||||||
Deficiencies, calo, decay, breakdown and breakage and | 1,152 | 1,007 | ||||||||
write-offs | ||||||||||
Intermediation | 416 | 373 | ||||||||
Costs | from | the | sale | of | assets, | raw | materials, | and | 5 | 6 |
materials, etc. | ||||||||||
Other business expenses | 99 | 120 | ||||||||
Total other business expenses | 1,672 | 1,506 |
2024 | 2023 | |
Exchange differences and other financial income | 940 | 296 |
Other income from interest | 2 | 2 |
Other financial income | 124 | 124 |
Total financial income | 1,066 | 422 |
2024 | 2023 | |
Discount release of IFRS 16 | 126 | 123 |
Interest-based expenses and similar expenses | 9 | 16 |
Exchange rate differences and other expenditure | 2 | 8 |
Unrealized losses (expenses) from fine, property | - | 19 |
Total financial expenditure | 137 | 166 |
Net financial income | 929 | 256 |
ČAKOVEČKI MLINOVI D.D., ČAKOVEC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
(all amounts are presented in thousands of euros)
173
2024 | 2023 | |
Current tax | 1,393 | 1,558 |
Deferred tax | 14 | (11) |
Total cost of income tax | 1,407 | 1,547 |
2024 | 2023 | |
Profit / (loss) before tax | 8,213 | 8,802 |
Income tax at 18% (domestic rate) | 1,478 | 1,584 |
Expenditure not deductible for tax purposes | 221 | 264 |
Tax-free income | (292) | (301) |
Profit tax | 1,407 | 1,547 |
Effective tax rate | 17,1% | 17,6% |
2024 | 2023 | |
Net profit | 6,805,601 | 7,255,348 |
Average weighted number of shares | 10,290,000 | 10,290,000 |
Basic and diluted earnings per share | 0.66 | 0.71 |
ČAKOVEČKI MLINOVI D.D., ČAKOVEC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
(all amounts are presented in thousands of euros)
174
2024, | 2023, | |
Depreciation of intangible assets | 43 | 65 |
Amortization of tangible assets | 5,514 | 5,729 |
Amortization of right-of-use assets | 1,697 | 1,733 |
Amortization investment in real estate | - | 180 |
Total depreciation | 7,254 | 7,707 |
Plant, equipment, | ||||||||
tools, operating | Other | |||||||
inventory, and | Assets in | tangible | ||||||
transport assets | the pipeline | assets | TOTAL | |||||
Purchase Value | ||||||||
On January 1, 2023, | 11,674 | 82,953 | 45,379 | 1,105 | 830 | 141,941 | ||
Additions | 69 | 9 | 437 | 3,625 | 2,041 | 6,181 | ||
Transfer | (79) | 5,582 | (2,824) | (2,344) | (335) | - | ||
Disposal | (2) | (5,170) | (441) | (26) | - | (5,639) | ||
On 2023 | December | 31, | 11,662 | 83,374 | 42,551 | 2,360 | 2,536 | 142,483 |
Plant, equipment, | ||||||||
tools, operating | Other | |||||||
inventory, and | Assets in | tangible | ||||||
transport assets | the pipeline | assets | TOTAL | |||||
Accumulated | ||||||||
depreciation | ||||||||
On January 1, 2023, | - | 66,277 | 41,040 | - | 830 | 108,147 | ||
Disposal | - | 180 | 180 | |||||
Transfer | - | (252) | (5,310) | - | - | (5,562) | ||
Depreciation charge | - | 2,919 | 2,810 | - | - | 5,729 | ||
On 2023 | December | 31, | - | 69,124 | 38,540 | - | 830 | 108,494 |
Net book value as of December 31, 2023 | 11,662 | 14,250 | 4,011 | 2,360 | 1,706 | 33,989 |
ČAKOVEČKI MLINOVI D.D., ČAKOVEC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
(all amounts are presented in thousands of euros)
175
Plant, equipment, | ||||||
tools, operating | Other | |||||
inventory and | Assets in | tangible | ||||
transport assets | the pipeline | assets | TOTAL | |||
Purchase value | ||||||
On January 1, 2024 | 11,662 | 83,374 | 42,551 | 2,360 | 2,536 | 142,483 |
Additions | 27 | - | 264 | 5,090 | 267 | 5,648 |
Transfer | - | 2,951 | 1,948 | (4,117) | (1,180) | (398) |
Disposal | - | - | (649) | - | - | (649) |
On December 31, 2024 | 11,689 | 86,325 | 44,114 | 3,333 | 1,623 | 147,085 |
Plant, equipment, | ||||||
tools, operating | ||||||
inventory and | Assets in | Other tangible | ||||
transport assets | the pipeline | assets | TOTAL | |||
Accumulated | ||||||
depreciation | ||||||
On January 1, 2024 | - | 69,124 | 38,540 | - | 830 | 108,494 |
Transfer | - | - | - | - | - | - |
Disposal | - | - | (639) | - | - | (639) |
Depreciation charge | - | 2,918 | 2,598 | - | - | 5,515 |
On December 31, 2024 | - | 72,042 | 40,499 | - | 830 | 113,371 |
Net book value as of December 31, 2024 | 11,689 | 14,283 | 3,615 | 3,333 | 793 | 33,713 |
ČAKOVEČKI MLINOVI D.D., ČAKOVEC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
(all amounts are presented in thousands of euros)
176
Tools, operating | |||
inventory, and transport | |||
assets | TOTAL | ||
Purchase Value | |||
On January 1, 2023 | 8,782 | 208 | 8,990 |
Additions | 1,121 | - | 1,121 |
Disposals | (223) | - | (223) |
On December 31, 2023, | 9,680 | 208 | 9,888 |
Tools, operating | |||
inventory, and transport | |||
assets | TOTAL | ||
Accumulated depreciation | |||
On January 1, 2023, | 3,727 | 134 | 3,861 |
Sales & Expense | - | - | - |
Depreciation of the current year | 1,688 | 45 | 1,733 |
On December 31, 2023, Net book value as of 31 | 5,415 | 179 | 5,594 |
December 2023 | 4,265 | 29 | 4,294 |
Tools, operating | |||
inventory and transport | |||
assets | TOTAL | ||
Purchase Value | |||
On 1 January 2024, | 9,680 | 208 | 9,888 |
Magnification | 3,696 | 63 | 3,759 |
Sales & Expense | (5,410) | (45) | (5,455) |
On December 31, 2024, | 7,966 | 226 | 8,192 |
Tools, operating | |||
inventory, and transport | |||
assets | TOTAL | ||
Accumulated depreciation | |||
On 1 January 2024, | 5,415 | 179 | 5,594 |
Sales & Expense | (3,127) | (45) | (3,172) |
Depreciation of the current year | 1,673 | 24 | 1,697 |
On December 31, 2024, Net book value as of 31 | 3,961 | 158 | 4,119 |
December 2024 | 4,005 | 68 | 4,073 |
ČAKOVEČKI MLINOVI D.D., ČAKOVEC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
(all amounts are presented in thousands of euros)
177
Land | |
Purchase Value | |
On January 1, 2023, | 481 |
Additions | - |
Disposals | - |
On December 31, 2023, Accumulated depreciation | 481 |
On January 1, 2023, | - |
Transfer | - |
Sales & Expense | - |
Depreciation of the current year | - |
As of December 31, 2023, | - |
Net book value as of 31 December 2023 | 481 |
Land | |
Purchase Value | |
On 1 January 2024, | 481 |
Additions | - |
Disposals | - |
On December 31, 2024 | 481 |
Accumulated depreciation | |
On 1 January 2024 | - |
Transfer | - |
Disposals | - |
Depreciation charge | - |
On 31 December 2024 | - |
Net book value as of 31 December 2024 | 481 |
ČAKOVEČKI MLINOVI D.D., ČAKOVEC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
(all amounts are presented in thousands of euros)
178
The | The | |
Group's | Group's | |
share of | share of | |
ownership | ownership | |
and voting | and voting | |
rights | rights | |
31/12/2024 | 31/12/2023 | |
Narodni trgovački lanac d.o.o. | 25% | 25% |
2024 | 2023 | |
Investment at the beginning of the period | 8,604 | 8,706 |
Voted dividend (compensated during the year) | (812) | (808) |
Share in the profit of the associated company | 1,287 | 1,336 |
Investment at the end of the period | 9,079 | 8,604 |
ČAKOVEČKI MLINOVI D.D., ČAKOVEC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
(all amounts are presented in thousands of euros)
179
Narodni trgovački lanac | ||
d.o.o. | ||
31/12/2024 | 31/12/2023 | |
Unaudited | Unaudited | |
Current assets | 38,607 | 37,487 |
Non-current assets | 57,011 | 17,888 |
Short-term liabilities | (29,241) | (18,580) |
Long term liabilities | (37,638) | (9,947) |
The Group's share in the Company's capital | 7,185 | 6,712 |
Share of other owners in the capital of the Company | 21,554 | 20,163 |
Revenues | 238,195 | 178,339 |
Profit for year | 5,016 | 5,318 |
Other comprehensive income attributable to the owners of the Company | - | - |
Total comprehensive income | 5,016 | 5,318 |
Dividends during the year | 812 | 808 |
31/12/2024 | 31/12/2023 | |
Equity instruments | 1,709 | 1,560 |
Loans, deposits, etc, | 90 | 104 |
Total non-current financial assets | 1,799 | 1,664 |
ČAKOVEČKI MLINOVI D.D., ČAKOVEC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
(all amounts are presented in thousands of euros)
180
Liabilities | |||||
based on | |||||
employee | Valuation of | Value | |||
benefits | financial | matching of | |||
(jubilee and | assets by FV | inventories | |||
severance | through | and | |||
pay) | RDiG | customers | Tax losses | TOTAL | |
On 1 January 2023 | 128 | 35 | 125 | 9 | 297 |
Posting in the profit and loss account | 2 | 4 | (6) | 11 | 11 |
On December 31, 2023, | 130 | 39 | 119 | 20 | 308 |
On 1 January 2024 | 130 | 39 | 119 | 20 | 308 |
Posting in the profit and loss account | (5) | - | 12 | 5 | 12 |
On December 31, 2024 | 125 | 39 | 131 | 25 | 320 |
31/12/2024 | 31,12, | 2023, | |
Merchandise | 20,878 | 22,175 | |
Raw materials and materials | 3,943 | 3,591 | |
Finished products | 763 | 616 | |
Non-current assets held for sale | 184 | - | |
Advances on stocks | 17 | - | |
Total Stock | 25,785 | 26,382 |
31/12/2024 | 31/12/2023 | |
Long-term receivables | - | 2 |
Short-term receivables | 8,995 | 9,709 |
Total receivables | 8,995 | 9,711 |
ČAKOVEČKI MLINOVI D.D., ČAKOVEC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
(all amounts are presented in thousands of euros)
181
31/12/2024 | 31/12/2023 | ||||||
Receivables from customers | 8,083 | 8,968 | |||||
Claims from the state and other institutions | 490 | 285 | |||||
Receivables | from | employees | and | members | of | ||
undertakings | 122 | 115 | |||||
Other receivables | 300 | 343 | |||||
Total receivables | 8,995 | 9,711 |
31/12/2024 | 31/12/2023 | |
Receivables from customers in the country | 9,315 | 10,108 |
Receivables from customers abroad | 86 | 145 |
Correction of the value of receivables from customers | (1,318) | (1,285) |
Total receivables from customers | 8,083 | 8,968 |
31/12/2024 | 31/12/2023 | |
Not overdue | 5,946 | 6,251 |
Up to 30 days due | 967 | 1,542 |
Overdue from 31-90 days | 783 | 1,112 |
Overdue over 90 days | 1,705 | 1,348 |
9,401 | 10,253 |
2024 | 2023 | |
As of January 1, 2024 | (1,285) | (1,294) |
Impairment expense | (89) | (191) |
Write - off | 43 | 190 |
Doubtful receivables collected | 13 | 10 |
As of December 31, 2024 | (1,318) | (1,285) |
31/12/2024 | 31/12/2023 | |
Accrued Revenue Not Due for Collection | 232 | 36 |
Claims for advances | 18 | 20 |
Other receivables | 50 | 287 |
Total other receivables | 300 | 343 |
ČAKOVEČKI MLINOVI D.D., ČAKOVEC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
(all amounts are presented in thousands of euros)
182
31/12/2024 | 31/12/2023 | |
Given loans, deposits | 42 | 500 |
Investments in securities | 38 | 38 |
Other financial assets | - | 87 |
Total short-term financial assets | 80 | 625 |
31/12/2024 | 31/12/2023 | |
Cash on hand and balances with banks | 2,856 | 2,196 |
Time deposits with maturity less than three months | 25,977 | 21,558 |
Total Cash and Cash Equivalents | 28,833 | 23,754 |
ČAKOVEČKI MLINOVI D.D., ČAKOVEC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
(all amounts are presented in thousands of euros)
183
31/12/2024 | 31/12/2023 | |
Share capital | 13,657 | 13,657 |
Reserves from profit | 3,132 | 3,246 |
Fair value reserves | 2,990 | 2,869 |
Retained earnings | 71,615 | 65,766 |
To owners of non-controlling interests | (3,823) | (3,865) |
Total capital and reserves | 87,571 | 81,673 |
Description | 2024 | 2023 |
Fair value reserve from measurement of investments in | 621,595 | 500,481 |
shares of unrelated undertakings | ||
Fair value reserve from measurement of investments in an associate (NTL) | 2,368,744 | 2,368,744 |
Total Capital and Reserves | 2,990,339 | 2,869,225 |
31/12/2024 | 31/12/2023 | |
Legal reserves | 683 | 683 |
Other reserves | 2,449 | 2,563 |
Total Profit Reserves | 3,132 | 3,246 |
ČAKOVEČKI MLINOVI D.D., ČAKOVEC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
(all amounts are presented in thousands of euros)
184
31/12/2024 | 31/12/2023 | |
Trgocentar d.d. | 47.97% | 47.97% |
2024 | 2023 | |
Trgocentar d.d. | 42 | 7 |
Total | 42 | 7 |
31/12/2024 | 31/12/2023 | |
Trgocentar d.d. | (3,823) | (3,865) |
Total | (3,823) | (3,865) |
ČAKOVEČKI MLINOVI D.D., ČAKOVEC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
(all amounts are presented in thousands of euros)
185
31/12/2024 | 31/12/2023 | |
Long-term part | 787 | 861 |
Short-term part | 634 | 441 |
On December 31, 2024 | 1,421 | 1,302 |
IAS 19 | Reservations | ||
Reservations | Unused GO | Reserve | |
On January 1, 2023 | 1,101 | 302 | 1,403 |
Cost of increasing reservations | - | 23 | 23 |
Revenue from reversal of provisions | (109) | (15) | (124) |
As of December 31, 2023 | 992 | 310 | 1,302 |
Cost of increasing reservations | 36 | 157 | 193 |
Revenue from reversal of provisions | (67) | (7) | (74) |
On December 31, 2024 | 961 | 460 | 1,421 |
31/12/2024 | 31/12/2023 | |
Discount rate | 3.09% | 3.39% |
Turnover rate | 9.47% - 18.4% | 7.1% - 14% |
31/12/2024 | 31/12/2023 | |
Long-term part | - | - |
Short-term part | 4,177 | 4,187 |
4,177 | 4,187 |
ČAKOVEČKI MLINOVI D.D., ČAKOVEC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
(all amounts are presented in thousands of euros)
186
31/12/2024 | 31/12/2023 | |
Long-term part | 2,699 | 2,974 |
Short-term part | 1,433 | 1,438 |
4,132 | 4,412 |
31/12/2024 | 31/12/2023 | |
1-2- years | 1,110 | 1,029 |
2-5 years | 1,522 | 1,686 |
>5 years | 67 | 259 |
2,699 | 2,974 |
Credits | Lease | ||
and loans | obligations | ||
On 1 January 2023 | 4,197 | 5,256 | |
Money Transactions | |||
Loan repayment | (10) | - | |
Rent repayment | - | (1,867) | |
Total Money Transactions | (10) | (1,867) | |
Non-monetary transactions | |||
Release of lease discount | - | 123 | |
New lease agreements | - | 1,121 | |
Terminations/modifications | of | ||
lease agreements | - | (221) | |
Total non-cash transactions | - | 1,023 | |
On December 31, 2024 | 4,187 | 4,412 |
Credits | Lease | ||
and loans | obligations | ||
On 1 January 2024, Money Transactions | 4,187 | 4,412 | |
Loan repayment | (10) | - | |
Rent repayment | - | (2,298) | |
Total Money Transactions | (10) | (2,298) | |
Non-monetary transactions | |||
Release of lease discount | - | 122 | |
New lease agreements | - | 4,371 | |
Terminations/modifications | of | ||
lease agreements | - | (2,475) | |
Total non-cash transactions | - | 2,018 | |
On December 31, 2024, | 4,177 | 4,132 |
ČAKOVEČKI MLINOVI D.D., ČAKOVEC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
(all amounts are presented in thousands of euros)
187
Deferred tax liability | |
On January 1, 2023 | 605 |
Increases due to the revaluation of financial assets by FV through OCI | 25 |
As of December 31, 2023 | 630 |
On 1 January 2024 | 630 |
Increases due to the revaluation of financial assets by FV through OCI | 26 |
On 31 December 2024 | 656 |
ČAKOVEČKI MLINOVI D.D., ČAKOVEC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
(all amounts are presented in thousands of euros)
188
31/12/2024 | 31/12/2023 | |
Accounts payable | 10,164 | 12,391 |
Obligations for taxes, contributions, and similar charges | 2,409 | 2,949 |
Obligations to employees | 2,078 | 1,838 |
Advance liabilities | 64 | 43 |
Liabilities based on the share of the result | 29 | 32 |
Other short-term liabilities | 530 | 388 |
Total accounts payable and other payables | 15,274 | 17,641 |
31/12/2024 | 31/12/2023 | |
Accounts payable to suppliers in the country | 9,554 | 11,906 |
Accounts payable to suppliers abroad | 397 | 197 |
Liability for uninvoiced goods | 213 | 288 |
Total liabilities to suppliers | 10,164 | 12,391 |
31/12/2024 | 31/12/2023 | |
Liabilities for net salaries to employees | 1,816 | 1,621 |
Other obligations to employees | 262 | 217 |
Total liabilities to employees | 2,078 | 1,838 |
31/12/2024 | 31/12/2023 | |
VAT liability | 1,102 | 1,406 |
Corporate income tax liability | 350 | 782 |
Liabilities for other taxes and contributions | 957 | 761 |
Total liabilities for taxes, contributions and similar charges | 2,409 | 2,949 |
ČAKOVEČKI MLINOVI D.D., ČAKOVEC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
(all amounts are presented in thousands of euros)
189
Narodni trgovački | |
lanac d.o.o. | |
Receivable as of 31/12/2024 | 345 |
Obligation as at 31/12/2024 | 1,580 |
Sales in 2024 | 2,138 |
Procurement in 2024 | 12,385 |
Other income | 5 |
Dividend income | 808 |
ČAKOVEČKI MLINOVI D.D., ČAKOVEC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
(all amounts are presented in thousands of euros)
190
31/12/2024 | 31/12/2023 | |||||
Long-term financial assets | 90 | 104 | ||||
Long-term receivables | - | 2 | ||||
Receivables | 8,995 | 9,709 | ||||
Current financial assets | 42 | 587 | ||||
Money and cash equivalents, | 28,833 | 23,754 | ||||
Financial assets at amortised cost | 37,960 | 34,156 | ||||
Investments in securities | 38 | 38 | ||||
Financial assets at fair value through profit or loss | 38 | 38 | ||||
Equity instruments | 1,709 | 1,560 | ||||
Financial | Assets | at | Fair Value through | Other | ||
Comprehensive Income - Equity Instruments | 1,709 | 1,560 | ||||
Total financial assets | 39,707 | 35,754 |
31/12/2024 | 31/12/2023 | |
Lease liabilities | 4,132 | 4,412 |
Loan liabilities | 4,177 | 4,187 |
Liabilities towards suppliers | 10,164 | 12,391 |
Liabilities towards employees | 2,078 | 1,838 |
Liabilities for taxes, contributions and similar | ||
benefits | 2,409 | 2,949 |
Liabilities for advances | 64 | 43 |
Liabilities based on the share in the result | 29 | 32 |
Other short-term liabilities | 530 | 388 |
Financial liabilities at amortized cost | 23,583 | 26,240 |
Total financial Liabilities | 23,583 | 26,240 |
31/12/2024 | 31/12/2023 | |
Loans and lease liabilities | (8,309) | (8,599) |
Cash and cash equivalents and deposits | 28,875 | 24,254 |
Net debt | (20,566) | (15,655) |
Capital | 87,570 | 81,673 |
Net debt equity ratio | 23.5% | 19.2% |
31/12/2024 | 31/12/2023 | |
Receivables from customers | 8,083 | 8,968 |
Loans and deposits made - short-term | 42 | 500 |
Money and cash equivalents, | 28,833 | 23,754 |
Total financial assets | 36,958 | 33,222 |
31/12/2024 | 31/12/2023 | |
Receivables from customers in the country | 9,315 | 10,108 |
Receivables from customers abroad | 86 | 145 |
Total receivables from customers (gross) | 9,401 | 10,253 |
31/12/2024 | 31/12/2023 | |
Receivables from customers in the country | 9,315 | 10,108 |
Receivables from customers abroad | 86 | 145 |
Correction of the value of receivables from customers | (1,318) | (1,285) |
Total receivables from customers | 8,083 | 8,968 |
Gross amount | Reduction | Gross amount | Reduction | |
31/12/2024 | 31/12/2024 | 31/12/2024 | 31/12/2024 | |
Not overdue | 5,946 | (6) | 6,251 | (96) |
Up to 30 days due | 967 | (2) | 1,542 | (66) |
Overdue from 31-90 days | 783 | (4) | 1,112 | (81) |
Overdue over 90 days | 1,705 | (1,306) | 1,348 | (1,042) |
9,401 | (1,318) | 10,253 | (1,285) |
31/12/2024 | |||||||
Not | 0-30 | 31-60 | 61-90 | 91-120 | >121 | TOTAL | |
Trade receivables | overdue | ||||||
Expected Credit Loss | 0.25% - | 0.4% - | 2.0% - | 4.9% - | 8.8% - | 14.6% - | |
Rate | 3.2% | 8.4% | 14.1% | 19.0% | 28.1% | 47.8% | |
Estimated total gross Carrying amount of default | 6,854 | 1,328 | 428 | 421 | 298 | 433 | 9,762 |
Expected credit loss | 151 | 76 | 47 | 76 | 81 | 170 | 601 |
31/12/2023 | Not | 0-30 | 31-60 | 61-90 | 91-120 | >121 | TOTAL |
Trade receivables | overdue | ||||||
Expected Credit Loss | 0.3% - | 0.4% - | 1.8 % | 3.9 % - | 6.6 % - | 9.4 % - | - |
Rate | 1.8% | 4.6% | - 8% | 16.6% | 30.2 % | 44 % | |
Estimated total gross Carrying amount of default | 7,296 | 1,819 | 1,071 | 264 | 146 | 86 | 10,682 |
Expected credit loss | 96 | 66 | 79 | 40 | 33 | 20 | 334 |
2024 | 2023 | |
As of January 1, 2024 | (1,285) | (1,294) |
Value adjustment expense | (89) | (195) |
Write - off | 43 | 194 |
Doubtful receivables collected | 13 | 10 |
As of December 31, 2024 | (1,318) | (1,285) |
Up to 1 | ||||||||||
i.r. | year | 1-5 years | > 5 years | Total | ||||||
Trade receivables | 8,083 | - | - | 8,083 | ||||||
Receivables from employees and members | ||||||||||
of entrepreneurs | 122 | - | - | 122 | ||||||
Receivables | from | the | state | and | other | 490 | - | - | 490 | |
institutions | ||||||||||
Other receivables | 300 | - | - | 300 | ||||||
Loans and deposits | 0.01% | -2.86% | 80 | - | - | 80 | ||||
Cash and cash equivalents | 28,833 | - | - | 28,833 | ||||||
37,908 | - | - | 37,908 | |||||||
Total financial assets |
i.r. | Up to 1 year | 1-5 years | > 5 years | Total | |||||
Lease liabilities | 2.50% | 1,469 | 11,775 | 2,327 | 15,571 | ||||
Loan liabilities | 2.4%-2.68% | 4,177 | - | - | 4,177 | ||||
Trade payables | 10,164 | - | - | 10,164 | |||||
Liabilities | for | taxes, | contributions | and | |||||
similar benefits | 2,409 | - | - | 2,409 | |||||
Liabilities towards employees | 2,078 | - | - | 2,078 | |||||
Liabilities for advances | 64 | - | - | 64 | |||||
Liabilities based on the share in the result | 29 | - | - | 29 | |||||
Other short-term liabilities | 530 | - | - | 530 | |||||
Total financial Liabilities | 20,920 | 11,775 | 2,327 | 35,022 |
ČAKOVEČKI MLINOVI D.D., ČAKOVEC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
(all amounts are presented in thousands of euros)
195
Up to 1 | ||||||||||
i.r. | year | 1-5 years | > 5 years | Total | ||||||
Trade receivables | 8,968 | - | - | 8,968 | ||||||
Receivables from employees and members | ||||||||||
of entrepreneurs | 115 | - | - | 115 | ||||||
Receivables | from | the | state | and | other | |||||
institutions | 285 | - | - | 285 | ||||||
Other receivables | 343 | - | - | 343 | ||||||
Loans and deposits | 625 | - | - | 625 | ||||||
Cash and cash equivalents | 0.01% | -2.86% | 23,754 | - | - | 23,754 | ||||
Total financial assets | 34,090 | 34,090 |
i.r. | Up to 1 year | 1-5 years | > 5 years | Total | |||||
Lease liabilities | 2.50% | 1,474 | 12,975 | 3,449 | 17,898 | ||||
Loan liabilities | 2.4%-2.68% | 4,187 | - | - | 4,187 | ||||
Trade payables | 12,391 | 12,391 | |||||||
Liabilities | for | taxes, | contributions | and | |||||
similar benefits | 2,949 | 2,949 | |||||||
Liabilities towards employees | 1,838 | - | - | 1,838 | |||||
Liabilities for advances | 43 | 43 | |||||||
Liabilities based on the share in the result | 32 | - | - | 32 | |||||
Other short-term liabilities | 388 | - | - | 388 | |||||
Total financial liabilities | 23,302 | 12,975 | 3,449 | 39,726 |
31/12/2024 | 31/12/2023 | |||||
Book value | Increase by | Book value | Increase by | |||
0.5% | 0.5% | |||||
Loan liabilities | (4,177) | (21) | (4,187) | (19) | ||
Lease obligations | (4,132) | (21) | (4,412) | (22) | ||
Loans | and | deposits | 25,977 | 130 | 22,058 | 110 |
given | ||||||
Net Amount | 17,668 | 88 | 13,459 | 69 |
ČAKOVEČKI MLINOVI D.D., ČAKOVEC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
(all amounts are presented in thousands of euros)
196
NOTE 32 – RISK EXPOSURE AND MANAGEMENT (CONTINUED)
32.2. Risks of Regular Operations
ČAKOVEČKI MLINOVI D.D., ČAKOVEC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
(all amounts are presented in thousands of euros)
199
ČAKOVEČKI MLINOVI D.D., ČAKOVEC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
(all amounts are presented in thousands of euros)
200
December 31, 2024 | Level 1 | Level 2 | Level 3 | TOTAL |
Investing in securities | 102 | 1,597 | 38 | 1,737 |
TOTAL | 102 | 1,597 | 38 | 1,737 |
December 31, 2023 | Level 1 | Level 2 | Level 3 | TOTAL |
Investing in securities | 99 | 1,452 | 47 | 1,598 |
TOTAL | 99 | 1,452 | 47 | 1,598 |
ČAKOVEČKI MLINOVI D.D., ČAKOVEC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
(all amounts are presented in thousands of euros)
201
ČAKOVEČKI MLINOVI D.D., ČAKOVEC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
(all amounts are presented in thousands of euros)
202
ČAKOVEČKI MLINOVI D.D., ČAKOVEC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
(all amounts are presented in thousands of euros)
203
