Krka Reports Record Sales, and Profits Rise 16%

By , 23 May 2018, 11:18 AM Business
Krka Reports Record Sales, and Profits Rise 16% krka.biz

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STA, 23 May 2018 - Slovenia's pharma group Krka posted EUR 338.3m in sales in the first quarter of the year, an all-time quarterly high and a 5% increase on the same period last year. Net profit was up by 16% to EUR 49.4m. 

The bulk of sales revenue (94%) was generated in markets outside of Slovenia, the company said in a regulatory filing on Wednesday. Volume sales increased by 10%.

The group's largest sales region, East Europe, accounted for EUR 106.2m in sales revenue, an increase of 4% year-on-year. Sales in Russia were up by 1% to EUR 74.5m.

Region Central Europe, comprising the Visegrad Four and the Baltic countries, saw a 6% growth with quarterly sales at EUR 81.2m. Krka's largest market there, Poland, accounted for EUR 36.5m in sales.

Krka's sales in West Europe rose by 3% to EUR 74m. The largest markets there are Germany, France and Spain.

Region South-East Europe, including Krka's key markets Romania and Croatia, posted a 14% growth with quarterly sales revenue at EUR 44.2m.

Overseas sales were up by 1% to EUR 11m.

In Slovenia, quarterly sales were up by 3% to EUR 21.7m. The company preserved the position of the market leader with a 9.1% market share.

The bulk of group's quarterly sales (82.5%) represented prescription drugs, at EUR 279m. The figure marks a 6% increase year-on-year with growth posted in all regions.

Sales of non-prescription products rose by 11% to EUR 34.2m, while sales of animal health products fell by 7% to EUR 16.4m. The revenue from spa and tourism services was up by 6% to EUR 8m.

The group allocated EUR 19.3m for investments, mainly in expanding and modernisation of production and research and development capacities.

At the end of March, the Krka Group had 10,963 employees, 1% more than at the end of 2017. Including people hired through agencies, the group employed 12,238 people.

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