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Pharma group Krka's net profit up 42% to EUR 172m in first nine months (adds)

Ljubljana, 21 November (STA) - The Novo Mesto-based pharmaceutical group, Krka, generated EUR 1.09 billion in sales revenue in the first nine months of the year, which is 12% more than in the same period last year. Net profit increased by 42% to EUR 171.9 million. Sales were up in all regions and most markets.

The core company Krka saw its sales revenue rise by 10% to top EUR 1 billion, while its net profit rose by 46% to EUR 174.8 billion, shows the company's business report, published on the web site of the Ljubljana Stock Exchange on Thursday.

Sales went up in all regions and for all groups of products and services. Krka generated the most revenue in Eastern Europe, where sales went up by 18% to almost EUR 339.7 million in the first nine months of the year, which is 31% of total sales.

In Russia, the group's largest individual market, sales increased by 15% to EUR 218.2 million.

In Slovenia, where Krka generated 6.4% of its total sales, sales increased by 5% to EUR 69.9 million. Some EUR 40 million worth of products were sold in Slovenia alongside EUR 29.9 million worth of spa tourism services.

Central Europe, which contributed 23.2% to total sales revenue, recorded a 5% rise in revenue to EUR 252 million. In the biggest market of the region, Poland, sales were up 6% to EUR 119.2 million.

In Western Europe, sales jumped by 16% to EUR 243.1 million, which accounted for 22% of total sales. The biggest growth was recorded in Scandinavian countries, Spain, the UK and Benelux countries.

The sales revenue in South-East Europe rose by 10% to EUR 145.6 million, mostly on account of Bulgaria and Serbia.

The group allocated EUR 81.1 million for investment in the January-September period, of which EUR 66.3 million were investments of the core company.

In the first nine months of the year, 13 new products were registered in 30 pharmaceutical forms and strengths.

The group expects sales to reach EUR 1.43 billion at the end of this year. Net profit should top EUR 200 million and investment EUR 114 million, mostly into production capacities and infrastructure. Some 10% of sales revenue will go for research and development.

Next year, sales revenue is expected to reach EUR 1.52 billion and net profit over EUR 210 million. Labour force should increase by 3%, meaning that the group would employ more than 12,300 people at the end of 2020.

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