Business News

Krka Group Ups Net Profit in Q1 by 7% Y/Y

Novo mesto, 13 May (STA) - The group around drug maker Krka generated EUR 246m in revenues in the first quarter of 2010, almost level on the year before, while net profit increased by 7% to EUR 47m. The core company's revenues were meanwhile at EUR 231m, up 7% year-on-year, Krka chairman Joze Colaric told the press in Novo mesto on Thursday.

According to Colaric, the group increased its sales by EUR 0.9m, and as much as 90% of the entire sales were generated on foreign markets.

Central Europe remains the main region in terms of sales with more than a 30% market share. Krka's sales in the region in the first quarter amounted to almost EUR 76m, up 5% year-on-year.

Eastern Europe is the second biggest sales area with almost a 24% market share and EUR 58m of sales in the January-March period, which is down 9% year-on-year, Colaric explained.

The grouped increased its sales in Western Europe and overseas by 6% to EUR 53m, most of it in France, while sales in Southeast Europe were up 7% to almost EUR 35m.

Krka's sales in Slovenia stood at EUR 25m, which is 8% less than in the first quarter of 2009. This is mainly a consequence of the closure and renovation of one of Krka's hotels on the coast, according to Colaric.

The group spent a total of EUR 18m for investments in the first quarter, EUR 13m in the core company and EUR 5m in subsidiaries.

Colaric added that the management and supervisors had proposed that shareholders be paid EUR 37m in dividends at EUR 1.10 per share, which is 5% more in comparison to last year. The shareholders will discuss the proposal on 17 June.

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