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Krka's Revenues Up in 2011, Profit Down (adds)

Novo mesto, 19 January (STA) - The pharmaceutical group Krka generated EUR 1.075bn in revenues in 2011, which is 6% more than in the year before. However, the group's net profit was down to EUR 162m, according to unaudited data released by the Novo mesto-based company on Thursday.

The core company generated EUR 957.6m in revenues, up 3% year-on-year, while its net profit was also down to EUR 150m.

The group's profit was affected by negative exchange rate differences, Krka's management told the press a day after the results were discussed by the supervisory board.

The group's 2011 operating profit is expected to be 2% to 3% higher than in 2010, while the parent company' operating profit was lower than the year before. Krka's operating profit stood at EUR 183m, while profit before tax was at EUR 180m.

The group generated 91% of its revenues abroad. Sales increased in western Europe and overseas markets as well as in East and Southeast Europe, while the figures went down in Central Europe and in Slovenia.

In 2011, Krka generated EUR 101.8m of its sales in Slovenia, with prescription drugs accounting for most of the sales. Its market share amounted to 12%.

Krka increased the number of workers in 2011 by 5% and is planning the same increase in 2012, Krka CEO Jože Colarič told the press in Novo mesto.

Krka moreover intends to increase revenues by 6% in 2012. It is to build a EUR 200m facility in Novo mesto, which will be able to produce 4.5 billion tablets and capsules annually.

Colarič said however that the management was aware that further investments will also be needed. Krka will decide whether to start building infrastructure for a facility in Krško, and will continue constructing a plant in Russia.

Krka will continue buying its own stock, last year it acquired 5.7% of its own shares, and is planning to be listed on the Warsaw Stock Exchange by the end of June. The move can however be postponed or called off if the situation on the international capital markets is unfavourable, Colarič added.

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