The Slovenia Times

Pharma group Krka ups net profit 39% last year to EUR 242m


The group's operating profit was up by 18% to EUR 274 million, and pre-tax profit increased by 40% to EUR 283.7 million.

The core company generated EUR 1.39 billion in sales revenue, up 13% from 2018, and net profit more than doubled to EUR 248.1 million.

Last year, the Krka group generated EUR 481.2 million or 32.3% of total sales in East Europe, the largest market for Krka, with sales there increasing by 17% year-on-year. In Russia alone, sales were up by 13% to EUR 310.5 million.

Central Europe, comprising the Visegrad Group and the Baltic states, followed with EUR 339.6 million, or 22.8% of total Krka group sales. Sales there were up by 7% compared to the year before.

Sales to West Europe amounted to EUR 336 million or 22.6% of total sales, and were up by 17% compared to 2018. Germany, the Scandinavian countries, Spain, and Italy generated the strongest sales in the region.

With sales of EUR 191.3 million, South-East Europe represented a 12.8% share in total Krka group sales, and saw a 9% rise compared to the year before. Romania and Croatia were the largest markets, while the highest sales growth was recorded in Bulgaria and Serbia.

In Slovenia, sales were up by 4% to EUR 92.4 million, accounting for 6.2% of total sales. Product sales stood at EUR 52.9 million, while health resorts and tourist services yielded EUR 39.5 million.

In the overseas markets, the Krka group generated EUR 48.6 million in product sales, a 12% growth, which is 3.3% of total sales.

Commenting on the results, Krka chairman Jože Colarič noted that the group had posted its best sales result ever. Growth of sales was recorded in all regions and on the majority of markets, and sales were up in all groups of products and services, he added.

According to Colarič, the group plans to generate EUR 1.52 billion in sales and more than EUR 210 million in net profit this year. A total of EUR 134 million has been earmarked for investment in 2020, mostly in production and infrastructure.

Last year investments amounted to EUR 113 million, of which EUR 93 million was invested in the core company. Most of the funds went for modernisation of production and research, quality assurance and production and distribution centres.

In 2020, Krka plans to increase the workforce in Slovenia and abroad by a total of 3%, and is expected to have more than 12,300 employees at the end of the year, said Colarič.

The unaudited financial statements for 2019 for the group and core company will be published on 19 March, Krka said.


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