Krka Sales Up 6% in H1, Profit Up 15%, Will Pay Dividend of €4.25 Per Share

By , 10 Jul 2020, 10:19 AM Business
Krka Sales Up 6% in H1, Profit Up 15%, Will Pay Dividend of €4.25 Per Share krka.si

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STA, 9 July 2020 - Krka Group sales revenue grew by 6% year on year to EUR 803.8 million in the first half of the year, according to preliminary estimates. Net profit of the pharmaceutical group grew by 15% to EUR 160.3 million, Krka said on Thursday.

Sales of products and services were the highest in east Europe, standing at EUR 271.7 million, up 8% from the first six months in 2019.

Russia, which is Krka's largest individual market, added EUR 180.2 million to the total sales, which is also 8% more than a year ago.

Most other markets in east Europe and central Asia also recorded growth.

In Central Europe, where the group generates 22.8% of sales, sales were up by 8% to EUR 182.7 million. Western Europe follows with EUR 181.6 million, up 7% from the same period last year.

In SE Europe, where 12.9% of total sales are generated, it topped EUR 103.5 million.

Meanwhile, a 15% drop was recorded on the Slovenian market, where sales reached EUR 38.3 million.

The group attributes the drop to a 46% drop in the sales of health and tourism services because of the Covid-19 pandemic. The Slovenian market accounts for 4.8% of total sales.

Krka sold EUR 24 million worth of products overseas, which is 2% less than in the same period last year.

In the January-June period, Krka sold EUR 753.2 million worth of products, of which EUR 691.7 million came from prescription drugs and EUR 61.5 million from over-the-counter drugs. The sale of the former increased by 8% and of the later decreased by 2%.

Earnings before interest and taxes (EBIT) reached EUR 216.7 million, a 40% year-on-year increase, while earnings before income tax, depreciation and amortisation (EBITDA) were up by 30% to EUR 273 million.

Krka registered four new products in the first six months of the year, three prescription drugs and one over-the-counter drug.

The group, which employed 11,658 people at the end of June or 12,751 if agency workers are included, estimates investments in the first six months at EUR 30 million.

The preliminary data was presented by CEO Jože Colarič at today's annual shareholders meeting. Krka also said in a press release published on the web site of the Ljubljana Stock Exchange that this year sales were expected to reach EUR 1.52 billion, while net profit should top EUR 210 million.

The group plans to allocate EUR 134 million for investment, and spend 10% of sales revenue for R&D.

Krka also announced a dividend of EUR 4.25 gross per share this year, EUR 1.05 more than in 2019.

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