Sheep breeding in the Republic of Croatia has great opportunities and benefits for development, but it still does not realize full potential. The problem is seen in the small incentives by the state to engage in this branch of animal husbandry and in the large scope of work. Through our work we see that successful sheep farming depends largely on government incentives, on the market's ability to pay, but the most important item is certainly quality and efficient management through which, if managed properly, positive economic and financial results are achieved. In addition to the importance of managing the business of the economy, it is important to organize and manage production. With proper planning of animal feed production and a semi-intensive method of breeding, the economy reduces its costs to a minimum. A clearer indicator is the production year 2019, when improved management of the economy significantly increases the profitability of operations from 8.71% to 14.46%. In addition to profitability, the financial result also increased, in 2017 the financial result amounted to HRK 28,356.00, in the next production year 2018 it decreased to HRK 20,804.00, while in the production year 2019 a significant increase is seen, HRK 33,470.00. With the decrease in the financial result, ie the increase in costs, the production price increased and decreased. It is concluded that even with effective and proper management, a positive financial and economic result is achieved.