Slovenian pharma group Krka saw its sales revenue increase by 5% last year to a record €1.81 billion but net profit dropped by 14% due to foreign exchange losses, to amount to an estimated €311.2 million.

"Despite inflation pressures, our operating profit (EBIT) was the highest to date according to estimates, totalling €397.6 million, which is up 4% year-over-year," CEO Jože Colarič told reporters at the company's headquarters in Novo Mesto on 25 January.

The group sold 94% of its goods and services abroad. Russia is the most important market, followed by Poland, Germany, Ukraine, Romania and Slovenia.

New products, joint venture

Last year, Krka obtained marketing authorisations for 14 new products and completed 698 marketing authorisation procedures in various markets.

Capital expenditure amounted to €131.2 million and included the purchase of 23 hectares of land in the industrial zone in Novo Mesto for potential expansion in the coming decades.

This year investments are to increase to over €150 million.

The number of staff increased by 1% last year to 12,753, of whom 45% worked abroad. The headcount is expected to rise by an additional 3% this year.

Sales are projected to stand at €1.85 billion and net profit to top €310 million in 2024.

Krka announced having set up a joint venture with its Indian partner Laurus Labs in Hyderabad, India. Krka will have a 51% stake and Laurus a 49% in Krka Pharma, which is to enter the Indian market and other non-EU markets that neither Krka nor Laurus are present in.

Sales up in most markets

The group increased sales in most markets. Region-wise it generated most sales revenue in eastern Europe, but the figure was down on the year before by 5% to €594 million.

In Russia volume sales were up by 7%. In euros, revenue was down by 10% but in rubles it was up by 15%. Growth was also recorded in most other markets in the region.

Sales in central Europe were up by 9% to €397.1 million and in western Europe they rose by 13% to €369.6 million. In SE Europe they increased by 11% to €249.3 million.

In Slovenia, the group sold €113.8 million in goods and services, which is 6.3% of the group's total sales and up 10% compared to the year before.

"We supply 30% of the quantities the Slovenian market needs," Colarič said. A significant increase in visits to Krka spas in Slovenia has been recorded after the pandemic.

The quantities of medicines sold by the group worldwide have been constantly growing. "In 2005, we sold just under six billion tablets and capsules, and last year we sold almost 18 billion," Colarič said.

Last November, Krka received the first S&P Global CSA rating for 2023, "which places us among the top 10 pharmaceutical companies", Colarič added.