Net Profit Up 11% At Krka, With Record H1 Sales

By , 06 Jul 2018, 09:39 AM Business
Net Profit Up 11% At Krka, With Record H1 Sales krka.si

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STA, 5 July 2018 - Drug maker Krka posted a net profit of EUR 101.4m for the first half of the year, up 11%, on the back of sales that reached an all-time high of EUR 680.5m, an increase of 4% on the year before, the company revealed at Thursday's annual general meeting. 

Operating profit (EBIT) rose 9% to EUR 135.2m and operating profit before depreciation and amortisation (EBITDA) was up 7% to EUR 190.2m.

Sales increased in all regions. In Russia, the largest single market for Krka, which accounts for over a fifth of total revenue, sales measured in euros declined by 2% but they rose 12% in the local currency.

Increases were also recorded across all product groups.

Sales of prescription drugs, which represent 83.5% of group sales, were up 4%, while sales of over-the-counter drugs were up 8%.

The shareholders endorsed the management's proposal to earmark EUR 92.9m out of the EUR 169.2m in distributable profit for 2017 for dividends.

The dividend of EUR 2.90 gross per share exceeds last year's dividend by 15 cents or 5.5%. It will be paid out on 19 July.

Small shareholders of Krka had unsuccessfully proposed that the company pay out dividends of EUR 3.50 gross per share.

Krka CEO Jože Colarič said at the meeting that one half of the remaining distributable profit (EUR 38.17m) would be allocated to other reserves from profit, and the other carried over.

The management and supervisory boards were granted discharge of liability for 2017, and appointed Ernst & Young Revizija from Ljubljana was appointed the auditor for this year.

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