The Slovenia Times

Krka Reports Fall in Nine-Month Profit


In the first three quarters this year, the group sold EUR 768.2m worth of goods and services, which is 6% more year-on-year, Krka chairman Joze Colaric told the press in Novo mesto on Thursday.

The group's operating profit was also up, growing 9% to EUR 169m. Krka attributed the growth to the favourable structure of sold products, adding that the company was facing strong pressure to lower its prices on all of its foreign markets.

In the first nine months, the core company generated EUR 705.2m in sales revenues, which is a 2% drop compared to the same period last year, according to Colaric.

The Novo mesto-based pharma company also announced it would list its shares on the Warsaw Stock Exchange by 30 June 2012, which would make it the second Slovenian stock on the Warsaw exchange after the NKBM bank, which was listed in May.

"The parallel listing can be postponed or cancelled in case of unfavourable conditions on the international capital markets," the company said, adding that its goals were new investors and more dynamic trading in the stock.

Colaric said that Krka was not satisfied with the current liquidity of the share on the Ljubljana Stock Exchange, which is one of the reasons for the parallel listing. The company assessed that Warsaw is the most suitable exchange for the emerging markets of Central, Eastern and Southeast Europe.

"The Warsaw Stock Exchange is also the most liquid stock market, it has a high share of companies with high market capitalisation and Polish pension funds are also there," Colaric added.

Krka boss also served up some projections for the end of the year. The group's sales revenues in 2011 are to stand at EUR 1.07bn (up 6% year-on-year) and net profit is to reach EUR 162m. Sales outside Slovenia are to represent 90% of total sales.

The company plans to increase sales by 6% to EUR 1.134bn in 2012, while the net profit for next year is planned to reach EUR 170m. Krka will spend EUR 200m for investments next year, Colaric also announced.


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