The Slovenia Times

Krka reports bumper profit amid record dividend payout

The headquarters of pharmaceuticals company Krka. Photo: Anže Malovrh/STA

The Novo Mesto-based pharma group Krka reported a 30% year-on-year increase in net profit for the first six months of the year just as the shareholders' meeting approved a record dividend payout.

According to preliminary financials released on 11 July, Krka posted a net profit of €222 million in the first half of the year on €985 million in revenue, the latter figure going up by 7% on the same period last year.

Operating profit (EBIT) rose by 1% to €238 million, whereas profit before income tax, depreciation and amortisation (EBITDA) declined by 2% to €284 million.

"We've grown in all sales regions and on most markets ... Estimated sales and estimated EBIT are the highest in the company's history," CEO Jože Colarič was quoted as saying in a press release.

The highest sales growth was recorded in Krka's key region of Eastern Europe (11%), as sales in Russia, the company's single biggest market rose by 9% and sales in Ukraine surged by 19%.

In Central Europe, the company's second largest region by revenue, sales grew by 7% on the back of a 17% increase in Poland.

All other regions posted single-digit growth rates.

Sales of prescription drugs, which account for the bulk of group sales, grew by 9% to €823 million, while sales of over-the-counter drugs contracted by 10% to €74 million.

The figures were released as Krka shareholders endorsed the management's proposal for a €231 million dividend payout, the highest to date.

The shareholders will receive €7.5 gross per share, 13.6% more than last year.


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