STA, 16 May 2022 - Home appliances producer Gorenje, which is part of the Hisense Europe group, has overtaken drug makers Lek and Krka to become the country's biggest exporter in 2021, with exports totalling almost two billion euros, according to data gathered by Delo.

Lek is in second place with EUR 1.59 billion and Krka right behind with exports worth EUR 1.47 billion. The only other company to break the one-billion mark is the Renault-owned car assembly plant Revoz with EUR 1.18 billion.

Revoz saw its export revenue decrease compared to 2021, whereas Lek and Krka posted solid gains and Gorenje reported an increase in exports of over 70% on the year before.

"In the first Covid year in 2020 there was a disastrous decline in orders, but in 2021 orders in the white goods segment surged. None of these years was typical. Demand is already tapering off this year," Gorenje said.

Steel group SIJ is in fifth place with EUR 820 million worth of exports, followed closely by aluminium producer Impol (EUR 800 million).

The top ten is rounded off by Caravan maker Adria Mobil (EUR 538 million), home appliances maker BSH Hišni Aparati (EUR 535), the industrial conglomerate Kolektor (EUR 351 million) and Mahle Electric Drives (EUR 324 million).

STA, 17 March 2022 - Drug company Krka, which has significant exposure to the Russian and Ukrainian markets, said on Thursday it could not yet assess the impact of the current situation in these two countries on its operations in 2022. But it stressed it had a strong capital structure, robust money flow and no financial debt, so long-term operations were not at risk.

According to unaudited consolidated business results, Krka generated EUR 1.57 billion in revenue in 2021, up 2% from 2020. Net profit was up 7% to EUR 308.2 million, which is slightly more than what was reported in a preliminary report at the end of January.

The results in 2021 were not affected by the war in Ukraine and the impact on the 2022 results could not yet be assessed. Any changes to the projections for 2022 will be presented when reliable short- and long-term assessments of the consequences of the war will be possible, Krka said.

Krka is active in Ukraine and Russia through its three subsidiaries and the parent company Krka Novo Mesto.

TOV Krka Ukraine, which deals only with marketing and has no production facilities, is based in Kyiv, and Krka-Rus OOO, a drug manufacturer, is based in the town of Istra near Moscow, while its marketing and sales offices are in Moscow.

Russia is Krka's largest single market, where the group generated EUR 333 million in sales last year, which is 21.3% of its total sales.

In Ukraine, which was the third largest market for Krka in 2021, sales reached EUR 96 million, which is 6.2% of the group's total sales.

In Ukraine, all measures have been taken to preserve the health and security of the staff, and pharmaceutical products are being shipped in line with expectations given the circumstances, Krka said.

Sales in Ukraine for the first quarter of 2022 has been estimated at EUR 25.9 million, up from EUR 22 million in the same period last year.

In Russia, all activities are running without any major disruptions, although some delays are being recorded in transport.

Krka is selling its products in the Russian market in the local currency so it is exposed to some risks given the current depreciation of the ruble. The estimated sale in the first quarter was slightly up to EUR 79.9 million.

The key short-term risks for Krka are the current situation in Ukraine, economic sanctions, volatility and depreciation of the rouble and credit risks.

Medicines are not subject to sanctions - neither in exports nor imports. Krka estimates that other markets and sales regions will not be directly affected by the situation, while indirect impact on the other markets of the eastern Europe region will depend on the duration of the war.

Krka has been present in the markets of eastern Europe for more than 50 years and has been exposed to many challenges, which have in the long term further enhanced its market share, Krka said in a press release.

It added that its robust business operations were based on a system of vertical integration, which ensured resilience against external shocks and responsiveness to the rapidly changing market situation.

STA, 18 November 2021 - Drug maker Krka reported a group net profit of EUR 240.1 million for the first nine months of 2021, a year-on-year increase of 14% and the highest nine-month profit in the company's history, on the back of revenue that increased by 1% to EUR 1.18 billion.

Profit before income tax, depreciation and amortisation (EBITDA) was down by 8% to EUR 352.7 million, whereas pre-tax profit (EBIT) increased by 12% to EUR 271.3 million, shows the company's interim report released on Thursday.

Sales rose across all markets except Western Europe, where they declined by 13% due to fewer product launches and decreased use of medicines decreased due the COVID-19 pandemic.

In its key markets, in Central and Eastern Europe, sales rose by 4% and 5%, respectively. Sales in its largest single market, Russia, were flat in euro terms but rose by 14% in roubles.

Broken down by product category, sales of prescription drugs remained flat across the group, whereas sales of over-the-counter drugs rose by 8% and animal health products grew by 16%.

The group allocated EUR 45.3 million to investments in the first nine months of 2021, slightly less than in the same period last year, whereas overall R&D spending rose by 1% to EUR 113 million.

Chief executive Jože Colarič said the January-September figures were in accordance with expectations.

"We recorded the highest sales and net profit in the first nine months since incorporation. We maintained profitability at a high level and obtained marketing authorisations for 11 new products," he was quoted as saying.

The company's priorities remain to ensure sales growth, achieve higher-than-average sales growth in terms of market dynamics, and place among the leading branded generic pharmaceutical companies on individual markets and in selected therapeutic classes, he said.

STA, 29 July 2021 - Slovenia's pharma group Krka Group saw its net profit rise by 11% to EUR 177.4 million in the first six months on record sales revenue of EUR 808.6 million, according to unaudited data.

Sales revenue was up by 1% compared to the same period last year and 6% higher than in the first six months of 2019, Krka said in a press release published on the web site of the Ljubljana Stock Exchange after the supervisors reviewed the results on Wednesday.

The group generated 95% of sales in markets outside Slovenia.

In East Europe, the group's largest region in terms of sales, sales revenue was up 2% to EUR 276.5 million. In Russia, sales dropped by 7% to EUR 168.2 million while the sales in local currency were up by 10%.

In Central Europe, which includes the Visegrad Group countries and Baltic countries, sales were up by 3% to EUR 188.9 million. In Poland, revenue increased by 2% to EUR 87.6 million.

Western Europe was the only region to see a drop in revenue, by 12% to EUR 159.6 million, reportedly due to the absence of new calls for applications. However, sales were up in the UK, France, Ireland and Austria. But they were the highest in Germany and France, Krka said.

In South East Europe, sales increased by 8% to EUR 112.3 million.

In Slovenia, EUR 41.8 million in sales was generated, up 9% from the same period last year. The revenue from products sale reached EUR 28.4 million and from spa and tourist services EUR 13.3 million.

Krka Group sold EUR 27.5 million worth of products overseas, which is 14% more than in the first half of 2020.

Operating profit before interest, taxes, depreciation and amortization (EBITDA) totalled EUR 255 million, 7% down on the first half of 2020. Operating profit (EBIT) reached EUR 200.5 million, a 7% decrease year on year.

Due to favourable exchange rate movements, a positive net financial result of EUR 6.7 million was generated.

The core company generated EUR 711.8 million in sales revenue, down 9% from the first six months of 2020. Net profit dropped by 1% to EUR 154.6 million.

EBITDA decreased by 17% to EUR 208.7 million, while EBIT was down 20% to around EUR 166 million.

The group, which had 11,607 employees at the end of June or 12,524 if agency workers are included, allocated EUR 29.5 million for investment in the first six months, including EUR 22.5 million in the controlling company. Development costs totalled EUR 75.6 million.

The group plans to generate EUR 1.535 billion in sales revenue this year and some EUR 265 million in profit.

CEO Jože Colarič labelled the results as excellent, saying the group would continue on this path.

The supervisors also endorsed Colarič's proposal to grant another term to management board members Aleš Rotar, Vinko Zupančič and David Bratož.

STA, 8 July 2021 - Pharmaceutical group Krka posted a net profit of EUR 177.4 million for the first half of the year, up 11% on the back of sales that reached EUR 808.6 million, up 1% over the same period last year, CEO Jože Colarič said at the company's annual general meeting in Otočec on Thursday.

Operating profit dropped by 8% to EUR 200.1 million according to early figures and gross operating profit decreased by 7% to EUR 254.7 million, Krka said in a release.

As much as 95% of the sales were generated on markets outside Slovenia, where products worth EUR 764.8 million were sold.

Krka's biggest single market, Eastern Europe, accounted for over 34% of the sales, or EUR 276.5 million, up 2%.

The dominant market within this region is Russia, where sales dropped by 7% to EUR 168 million, while growth was posted in most of the Eastern European markets and Asia.

Following Central Europe as the second biggest market accounting for 23.4% of the sales, Western Europe was third with an almost 20% share, and Germany the leader.

SE Europe placed fourth with 14% or EUR 112.3 million in sales, while in Slovenia, Krka's sales rose by 9% to EUR 41.8 million, accounting for 5.2% of group sales.

Other, overseas markets accounted for 3.4% of all group sales in the first six months, translating into EUR 27.5 million, up 14%.

The Novo Mesto-based group's investments in January-June amounted to over EUR 28 million, including over EUR 22 million at the parent company, the company said, adding the supervisory board would discuss the unaudited business results on 28 July.

Krka's shareholders will receive a record dividend of EUR 5 gross per share, up almost 18% from 2020, as the AGM backed the management's proposal to distribute EUR 156 million from last year's distributable profit of EUR 337.52.

Krka plans to end 2021 with sales of EUR 1.5 billion and a net profit of around EUR 265 million. Investments should total EUR 114 million.

"Business results in 2021 will depend on the spread of Covid-19 and related measures in individual countries, on global post-pandemic recovery and on exchange rate fluctuations in Krka's key currencies," the release says.

At the end of June, the Krka group employed 11,607 workers, while together with agency workers, the count reached 12,524.

STA, 28 January 2021 - The Novo Mesto-based pharmaceutical group Krka generated EUR 1.53 billion in revenue last year, up 3% compared to 2019, while net profit has been estimated at EUR 286.6 million, up 17% year-on-year, show the unaudited preliminary results released on Thursday.

CEO Jože Colarič said in the report that, despite the Covid-19 pandemic, Krka had managed to ensure uninterrupted operations, and provide supplies of pharmaceutical products in markets at all times.

Colarič noted that even though the pandemic had hindered marketing-and-sales activities, the Krka group recorded "best sales results ever".

Net profit, estimated at over EUR 286 million, is also the highest so far, as the group obtained marketing authorisations for 20 new medicinal products, including the first one in China.

The core company increased sales of goods and services by 4% to EUR 1.45 billion, and net profit was also up by 4% to EUR 258.4 million, the report shows.

It also adds that last year, the Krka group's overall investments amounted to almost EUR 230 million, including EUR 151.8 million of 10% of sales in 2020 for research and development.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 30% year-on-year to almost half a billion euros, while EBITDA margin reached 32.5%, up almost seven percentage points compared to 2019.

Product and service sales were up in all regions except Slovenia (-8%) and the overseas markets (-6%). Sales increased the most in East Europe, by 7% to EUR 517.2 million, followed by South-East Europe (+4% to EUR 199.4 million.)

East Europe accounted for 33.8% of total sales of the Krka group as the largest region in these terms, followed by Central Europe and West Europe with a 22.3% share each. Sales in Slovenia accounted for 5.6% of total sales.

In Slovenia, sales of products were up by 5%, while revenue from spa and tourism services was down by 25%, mostly due to the restrictive measures related to the epidemic, said Colarič.

Russia was the largest single market with EUR 326.9 million in sales, up 5% year-on-year. Expressed in the Russian ruble, the growth on the market was 17%.

In Ukraine, sales were up by 8% to EUR 86 million, and in Poland, the leading market for Krka in Central Europe, sales were up by 2% to EUR 163 million.

Sales of prescription pharmaceuticals amounted to EUR 1.3 billion at the group level, 4% more than in 2019, accounting for 85% of total product and service sales. All regions except the overseas markets saw sales growth and volume sales were up by 7%.

Colarič noted that the price of Krka share on the Ljubljana Stock Exchange had increased by 25% last year to reach EUR 91.40 at the end of December, with its market capitalisation standing at EUR 3 billion.

As for the plans for 2021, he said that sales were expected to reach EUR 1.53 billion and net profit EUR 265 million. Investments, mostly in the expansion and modernisation of production and infrastructure, are planned at EUR 114 million.

The group plans to increase the total number of employees by 1% in 2021, so the number of full-time employees is expected to exceed 12,000 by the end of the year.

The sick leave rate in the parent company in Slovenia did not increase significantly last year despite the epidemic, as it was up by 0.2 of a percentage point to 6.4%. Only 0.4% of total sick leave was related to Covid-19.

Colarič noted that the supervisory board had appointed him the CEO for the 2022-2027 term and had given him the mandate to form a new management board for that term. The appointment of the remaining board members is planned for November.

"In the second half of the year, we intend to review the five-year strategy and upgrade the goals. During the new term, we will lead Krka by following the course of an internationally established and innovative generic pharmaceutical company," he said.

STA, 19 November 2020 - The group around the drug maker Krka generated EUR 1.16 billion in sales revenue in the first nine months of the year, which is 6% more than in the same period last year. Net profit was up by 22% to EUR 210.14 million. Sales were up the most in east Europe, where the most revenue was generated.

Operating profit jumped by 57% to EUR 300.75 million and profit before tax, depreciation and amortisation (EBITDA) increased by 40% to EUR 384.6 million, the group said on the web site of the Ljubljana Stock Exchange.

According to CEO Jože Colarič, the group was successful in the first nine months, posting record results. "We have adjusted some business processes and started using e-communication tools more. Our good financial situation, broad range of quality pharmaceutical products, undisturbed production and supply, and innovative approaches in all areas of our work have allowed us to achieve our strategic goals," he said.

In the first quarter, a notable rise in demand and sales was recorded along with an increase in supply of the products in the distribution chains because of the epidemic. Subsequently, demand was somewhat lower in the second quarter. In the third quarter the impact of the pandemic on sales decreased, so sales returned to the level that had been planned.

In the absence of autumn and winter colds, a significant drop was recorded in the sale of antibiotics and seasonal over-the-counter drugs this year compared to previous years. However, more prescription drugs for chronic therapies were sold on some markets and more veterinary products for disinfection.

In terms of quantity, sales were up by 8% in the January-September period, and the group exported 96% of its products. The biggest absolute and relative growth was recorded in eastern Europe, where most of the sales, 32.6%, were generated.

"Sales were up compared to the same period last year in all regional markets, except Turkmenistan, but the crucial growth was that in Russia, a leading market for the region and Krka's largest individual market, where we have achieved the biggest absolute sales growth in the region.

"In Russia, we sold products worth EUR 240.3 million, thus exceeding last year's figure by 10%," Krka said in its business report.

The group allocated EUR 53.8 million for investment in this period, EUR 39.9 million of which went to the controlling company. Because of the pandemic, investments in construction were lower than planned.

The core company saw an 11% increase in sales revenue to EUR 1.12 billion in the first nine months, while net profit was up by 13% to EUR 197.26 million.

At the group level, the sale of products and services for the entire 2020 is expected to reach EUR 1.52 billion, which is 2% more than in 2019.

Prescription drugs remain the most important group of products, accounting for 85% of total sales. "We expect that because of the value and quantity of the products sold profit will exceed plans and stand at some EUR 260 million," Krka said.

But the final results could be affected by coronavirus restrictions that are also affecting the stock market, and Russia's ruble.

Next year, the group expects sales to reach EUR 1.53 billion and profit to stand at EUR 265 million. The group also plans to increase its workforce in Slovenia and other countries by just over 1% in total.

STA, 30 July 2020 – The group around the drug maker Krka generated EUR 803.8 million in sales revenue in the first half of the year, a 6% increase compared to the same period in 2019, while gaining EUR 160.3 million in net profit, up 15% year-on-year, the company said in a press release on Thursday.

After the half-year report was discussed by the Krka supervisory board on Wednesday, the management issued a statement today saying that "the Krka Group performed well in the first half of the business year, and reached record results."

"Despite the coronavirus pandemic outbreak, Krka has kept the supply of medicinal products to markets across the world uninterrupted," said CEO Jože Colarič.

The release adds that the Novo Mesto-based group entered the second half of the year in a sound financial condition, and the plan for the entire 2020 is to generate operating income of EUR 1.52 billion, and to increase net profit to EUR 210 million.

"Development of the coronavirus situation, spreading of the disease, its aftermaths, and the related measures of the affected nations are highly uncertain. We are therefore closely monitoring the situation and adapting accordingly in countries where we operate."

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.

STA, 21 May 2020 - Slovenia's pharma group Krka Group saw its net sales revenue increase by 22% year-on-year to EUR 462.9 million in the first quarter as the coronavirus pandemic pushed up the demand for its products. Net profit rose by 21% to EUR 85.2 million.

The unaudited interim report for the first quarter released by Krka on Thursday shows the operating profit rising by as much as of 85% year-on-year to EUR 133.9 million, and earnings before interest, taxes, depreciation and amortisation (EBITDA) increasing by 62% to EUR 162 million.

The group generated 95% of sales outside Slovenia, with East Europe, its biggest market, accounting for 33.2% of overall sales. The region also saw the highest sales growth in absolute terms, increasing by EUR 31 million to EUR 153.1 million, chiefly owing to growth in Russia and Ukraine.

In its second biggest market, Central Europe, Krka generated EUR 113.7 million or 24.6% of its overall sales, followed by South East Europe, at EUR 63.8 million (13.8%), and overseas markets, at EUR 13.5 million (2.9%).

Sales at home, at EUR 23.3 million, accounted for 5.1% of the overall sales. Prescription drugs accounted for EUR 10.8 million as their sales rose by 12% year-on-year.

The group allocated EUR 14.9 million for investment, of which EUR 9.8 million in the controlling company.

As of the end of March, the group had 11,622 regular employees, employing a total of 12,791 people along with agency workers. This is 21 more than at the end of 2019. This year the company plans to increase its headcount by 3%.

The core company, which employs 5,898, generated EUR 434.9 million in sales in January-March period, one third up year-on-year. Operating profit nearly doubled to EUR 126.2 million and EBITDA rose by 74% to EUR 147 million as net profit increased by 28% to EUR 65.4 million.

The company said the sales growth was partly affected by an increased demand for Krka products as a result of the novel coronavirus. "Towards the end of the first quarter, the demand slowed down and is currently at the planned and anticipated level."

Considering the unpredictability of the pandemic and its aftermath, the Krka management said it continued to carefully monitor the developments in the countries they operate in.

The group sales revenue for 2020 is projected at EUR 1.52 billion, of which 94% is to be generated in foreign markets. The profit target for the year is EUR 210 million, while EUR 134 million is to be allocated for investment this year.