Business News

Krka Group Ups Nine-Month Profit by 2% to EUR 127.4M

Novo mesto, 06 November (STA) - The group around pharmaceutical company Krka made a EUR 127.4m net profit in the first nine months of the year, which is a 2% improvement year-on-year. The core company meanwhile increased its nine-month net profit by 3% to EUR 120.8m, Krka reported at a press conference on Thursday.

Presenting the results at the group and core company level, Krka management noted that they were affected by the declining prices of drugs as well as depreciation of the Russian rouble and the Ukrainian hryvnia.

While the group's volume sales increased by 9% year-on-year, sales revenues in the first nine months remained flat at EUR 858m due to the mentioned reasons. Sales generated by the core company were down by 2% to EUR 815.4m.

East Europe remains the biggest regional market for Krka with EUR 301.6m in sales revenues or 35.1% of total sales. Despite the depreciation of the Russian and Ukrainian currencies, sales in the region increased by 1% year-on-year.

Russia as the biggest individual market for the Novo mesto-based company saw a 2% growth in sales expressed in euros, or a 15% growth expressed in roubles.

The second biggest regional market is Central Europe (EUR 196.4m; a 4% drop year-on-year), which represents a 22.9% share in total sales, followed by Western Europe (EUR 177.3m; a 4% growth).

The group recorded the biggest relative growth in Southeast Europe, where sales increased by 8% to EUR 107m.

Sales on the Slovenian market were meanwhile down by 11% to EUR 58m.

The Krka management has assessed that this year's total sales will reach last year's EUR 1.2bn, which is somewhat less than planned. Profit has been projected to equal last year's profit of EUR 173m.

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