News

The Krka Group sales in the first quarter of 2017 totalled €321 million, an increase by 7% compared to the same period last year, resulting in €42.7 million of net profit, a 6% year-on-year increase. The Krka Company sold €312.2 million worth of products and services and generated €45.3 million of net profit.

Krka Group sales by Region
Krka's largest sales region was Region East Europe with €101.8 million of sales, which is 31.7% of total sales. It was in this Region that Krka recorded the highest sales growth compared to the same period last year, in absolute (up €21.7 million) and relative (up 27%) terms. The result was chiefly driven by growth in Krka’s largest individual and one of its key markets, the Russian Federation. Positive sales dynamics were also witnessed in the majority of the other 12 markets in the Region, including the Region’s second key market, Ukraine.

The second largest region in terms of sales value was Region Central Europe with €76.9 million of sales and a 24% share in total Group sales. Sales there were up 5% compared to the same period last year. Poland is the leading market in the Region, with sales growth recorded in the Czech Republic and all three Baltic markets: Lithuania, Latvia and Estonia.

Region West Europe was next with €71.7 million of sales, which represents 22.3% of total sales. Sales volume was up 2%, with the value of sales down one tenth from the same period last year. The most sales were generated in Germany, France and Spain.

Product sales in the markets of South-East Europe amounted to €38.7 million, up 2% compared to the same period last year and representing 12% of total Group sales. Sales value was mainly driven by the markets of Serbia, Croatia, Macedonia and Bulgaria. In Romania, sales decreased due to price changes announced in March and the resulting cautious purchasing approaches of the distributors.

In the domestic market Krka sold €21.1 million worth of products and services, which is 6.6% of total Group sales. Sales revenues increased by 5%. With a 9.2% market share, Krka has remained the leading provider of pharmaceuticals in Slovenia.

Product sales in Region Overseas Markets totalled €10.9 million (10% increase), which represents 3.4% of total Group sales. The majority of sales came from prescription pharmaceuticals, which are sold under Krka's own brands in most markets of the Region.

Krka Group sales by product and service group
The Krka Group sold €264.4 million worth of prescription pharmaceuticals in the first quarter, which is 8% more than in the same period last year and represents 82.3% of total Group sales. Sales increased in regions East Europe (up 26%), Central Europe (up 6%), South-East Europe (up 2%), Slovenia (up 2%) and Overseas Markets (up 7%), while in Region West Europe they decreased by 2%.

The leading ten prescription pharmaceuticals in terms of sales have included Lorista (losartan) and its combination with a diuretic, Atoris (atorvastatin), Prenessa (perindopril) and its combination with a diuretic, Nolpaza (pantoprazole), Emanera (esomeprazole), Valsacor (valsartan) and its combination with a diuretic, Roswera (rosuvastatin), Enap (enalapril) and its combination with a diuretic, Zyllt (clopidogrel), and Amlessa (perindopril and amlodipine) together with its combination with a diuretic. Products can have different brand names in individual markets.

For non-prescription products, sales value was up 13% to €30.9 million (9.6% of total Group sales). The sales of animal health products were down 19% to €17.6 million, which is 5.5% of total Group sales. Health resort and tourist service sales totalled €7.6 million, a 6% year-on-year increase (2.4% share of total Group sales).

Research and development
In the first quarter of 2017 Krka obtained marketing authorisations for five new products in 12 pharmaceutical dosage forms and strengths, which is more than in the same period last year. They acquired 157 new marketing authorisations for 46 products in different markets in this period.

Investments
In the three months to March 2017 the Krka Group allocated €21.4 million to investments, of which the controlling company invested €18 million and subsidiaries €3.4 million.

Employees
At the end of March 2017 the Krka Group had 10,821 employees. Krka's subsidiaries and representation offices outside Slovenia employ 54% of the Group’s employees, and 56% of the entire Krka team have at least a university level degree.