Krka Ups Revenue by 7%, Profit Down 3% in H1

27. 07. 2012

Krka Ups Revenue by 7%, Profit Down 3% in H1


The pharmaceutical group Krka increased its sales revenues by 7% in the first half of the year to EUR 565.3m compared to the same period last year. However, its profit dropped 3% to EUR 90.1m year-on-year, Krka said at a press conference on Thursday.

 

Similar to the group, the core company's revenues were up 7% as well to EUR 521.3m, while its profit was 10% lower at EUR 82.9m, according to unaudited data presented today.

 

The group's operating profit reached EUR 117.1m between January and June, down 5% compared to the same period last year. The company's operating profit was down as well, by 13% to EUR 102.3m.

 

The group generated 92% of its revenues abroad, while the share of revenue from foreign markets is even higher for the core company, which saw 94% of revenue generated abroad.

 

Nonetheless, the drug maker saw revenues increase in some markets, most notably in east Europe, where the sales were up by as much as 25%. This region is also Krka's biggest market - some 30% of its products are sold there.

 

Krka CEO Jože Colarič told the press that the revenues had increased above all in regions that are considered to be Krka's main reserves. He listed the countries of eastern Europe, Russia, Ukraine, Kazakhstan and Uzbekistan.

The drug maker's revenues were up also in the UK, Ireland and Portugal as well as in Scandinavian and Benelux countries, according to Colarič.

 

In France, Italy, the Czech Republic, Slovakia and the Baltic countries sales revenues remained almost unchanged, while they dropped slightly in Poland and Hungary, according to Colarič, who said however that Poland is to catch up with last year's figures by the end of the year.

 

 

The drug maker's sales in Slovenia have suffered a drop of some 10% in the first half of the year and its tourism business has generated 6% less in revenue year-on-year, according to Colarič.

 

Considering these figures, Krka can only record growth in foreign markets, he said, listing as Krka's priority markets of the western, eastern, south-eastern and central Europe.

 

He also pointed to the growing pressure from all markets, but especially Slovenian, to lower the prices of drugs.

Colarič also touched on Krka's listing on the Warsaw Stock Exchange, saying the presence was technical. The company's intention was and remains to stay present there, as Poland is a good gateway for potential raising of capital, he said.

 

In the first half of the year, the group spent EUR 58m on investments: EUR 26.4m was invested by the company and EUR 31.6m by its subsidiaries.

 

The data also shows that the number of Krka employees has increased by 3% since January to a total of 9,203 at the end of June.

 

Source:The Slovenian Times

Krka Ups Revenue by 7%, Profit Down 3% in H1