The Slovenia Times

Krka Posts Record Revenues in 2012


Sales revenues of the core company have exceeded EUR 1bn for the first time, as it sold EUR 1.035bn worth of products and services last year, the management said at a press conference on Thursday.The company's net profit reached EUR 154.6m in 2012, up from EUR 150m in 2011, while its operating profit was at EUR 163m, according to unaudited data.

The group's profit was slightly higher than the parent company's, Krka said in a press release posted on the web page of the Ljubljana Stock Exchange. In 2011 the group's profit stood at EUR 162m.

The group generated 92% of is revenues or EUR 1.053bn abroad last year. Sales increased in the regions of eastern Europe (+24%), western Europe and oversea markets (+5%) and SE Europe (+1%). On the other hand, sales dropped by 2% in central Europe.

The group's revenues generated in Slovenia also dropped last year. It generated EUR 91m in revenues at home, which was 11% less than the year before. As much as 83% of drugs sold in Slovenia last year were prescription drugs.

The sale of prescription drugs went up by 7%, while the sale of over-the-counter products was up 8%. Over-the-counter drugs accounted for some 11% of Krka's sales in Slovenia last year.

Krka CEO Jože Colarič told the press that the sales revenues generated by Krka's spas dropped by 9% over the year before. To get back on track, Krka intends to introduce some organisational changes and boost advertising. The CEO said that they are not considering selling the spas.

Krka's investments in 2012 amounted to nearly EUR 153m, most of which went into the modernisation and expansion of R&D and production facilities, which will boost its production capacities in the next years, according to the CEO.

Touching on plans for 2013, Colarič told the press that Krka was expecting a 6% increase in sales revenues and also a 6% increase in the number of employees, which will top 10,000 this year.

However, profit will remain at 2012 levels due to the pressure on the market and a EUR 180m investment, said the CEO.


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