The Slovenia Times

Krka sales, profit at all-time high in 2022

Business
Novo Mesto
The headquarters of pharmaceuticals company Krka.
Photo: Anže Malovrh/STA
File photo

The Slovenian pharma group Krka generated record high sales revenue and profit last year. Revenue was up by 10% to €1.7 billion and net profit rose by 17% to €361 million, according to unaudited results released by the company on 26 January.

Krka saw sales going up in most of its key markets and across all product and service segments.

In Eastern Europe, sales were up by 14% to €623 million, in Central Europe by 4% to €364 million, in Western Europe and South East Europe by 7% to €327 million and €225 million, respectively, and in overseas markets by 23% to €66 million.

In Slovenia, the group sold €103 million worth of products and services last year, an increase of 11% from 2021. The bulk of the revenue (€60.5 million) was generated from sales of products, while spa and tourism services contributed €42.6 million.

The group sold €1.4 billion worth of prescription drugs worldwide last year, up 7% on the previous year. Sales went up in all regions, with Czechia, Germany and Russia leading the list among individual markets in terms of growth. Cardiovascular, central nervous system and gastrointestinal medications continued to top the list among prescription drugs sold.

"With a good business model and continuous adaptation in different areas of our business, we were able to meet the challenges of last year," CEO Jože Colarič told reporters at the company's headquarters in Novo Mesto.

The company registered 11 new products and completed 490 registration procedures.

Investment expenditure amounted to €106 million, a figure that is expected to rise to €130 million in 2023. At the end of 2022, the group employed 11,598 people, 5,243 of which abroad.

Colarič noted €39.2 million worth of high-tech investment in Notol 2, which completed €259 million of investment in total in this Novo Mesto-based facility specialising in production of solid medications.

An additional €26 million will be invested in Notol 2 this year, while Krka also wants to double the capacity to produce veterinary products and ensure the long-term production of sterile products in larger volumes. The investment is estimated at €29 million.

This year the company plans to launch construction in Krško of €163 million plant for the development and production of active pharmaceutical ingredients.

Planned investment abroad includes a €3.5 million upgrade of capabilities for the production of veterinary products in solid dosage forms at the production and distribution centre in Jastrebarsko, Croatia. The Ningbo Krka Menovo joint venture will continue to procure production and quality control equipment in China.

This year the group plans sales revenue to the tune of €1.755 billion and a net profit of around €300 million.

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