Krka presented its operating results for the nine months of 2014

The Group’s nine-month sales in terms of the quantity of products sold were up 9% compared to the same period last year. Due to the decreasing prices of pharmaceuticals and the depreciation of certain key currencies, however, the value of sales did not increase accordingly, remaining on the level of last year’s at EUR 858.0 million. The Group generated EUR 127.4 million of profit for the period (up 2%). The Krka Company sold EUR 815.4 million worth of products (down 2%) and generated EUR 120.8 million of profit for the period (up 3%).

Krka Group sales by Region

The leading sales region was Region East Europe, where Krka generated EUR 301.6 million, which represents 35.1% of overall sales. Compared to the same period last year, sales there increased by EUR 4.3 million, or 1%. In the Russian Federation, Krka’s largest individual market, they achieved 2% growth, 15% growth in the Russian rouble.

The second largest region in terms of sales was Region Central Europe, where Krka generated EUR 196.4 million (down 4%), which is 22.9% of total Group sales. Product sales in Region West Europe represented 20.7% of overall Group sales, and amounted to EUR 177.3 million (up 4%).

The highest relative sales growth, of 8%, was recorded in Region South-East Europe, where sales totalled EUR 107.0 million, which represents 12.5% of overall Group sales. Sales in the domestic market were down 11% to EUR 58.0 million, which represents 6.8% of total sales. In the newly founded Region Overseas Markets, nine-month product sales totalled EUR 17.7 million (2% of Group sales), down 11% compared to the same period last year.

Krka Group sales by product and service group

The Krka Group sold EUR 714.3 million worth of prescription pharmaceuticals in the reported period, 0.4% more than at the same period last year. Prescription pharmaceuticals represent 83.3% of Krka Group sales, their sales having increased in Region South-East Europe (up 10%), Region West Europe (up 5%) and Region East Europe (up 3%).

With respect to large markets, sales of prescription pharmaceuticals were up the most compared to the same period last year in Germany (up 32%), Romania (up 27%), the Russian Federation and Poland (both up 2%).  A substantial sales increase was also recorded in Spain (up 47%).

The ten leading prescription pharmaceuticals in terms of sales are Atoris (atorvastatin), Lorista (losartan), Enap (enalapril), Nolpaza (pantoprazole), Prenessa (perindopril), Zyllt (clopidogrel), Emanera (esomeprazole), Roswera (rosuvastatin), Valsacor (valsartan) and Karbis (candesartan). Products are marketed under different brand names in individual markets.

Non-prescription product sales were down 4% compared to the same period last year, to EUR 86.0 million, which represents one tenth of Krka Group sales, while animal health product sales were up 5% to EUR 33.2 million, which is 3.9% of overall Group sales. Health resort and tourist services totalled EUR 22.7 million in revenues, down 2% from the same period last year (2.6% of total sales).

Research and development

In the nine months to September 2014 Krka obtained marketing authorisations for 11 new products in 24 dosage forms and strengths, and acquired 340 new marketing authorisations for 97 products in different markets.

Investments

In the nine months to September 2014 the Krka Group allocated EUR 127.3 million to investments, of which the controlling company invested EUR 112.4 million and subsidiaries EUR 14.9 million. They have started several investment projects related to the production of raw materials and finished products, and directed to upgrading infrastructure, all of which will provide quality support to the business functions of the entire Group.

Employees

In the nine months to September 2014 the number of Krka Group employees increased by 347. At the end of September the Group had 10,395 employees, of which more than 53% worked in subsidiaries and representative offices outside Slovenia, and almost 55% of them had at least a university level education.

Krka Group plans for 2015

The Krka Group plans to report EUR 1.26 billion of product and service sales for 2015. Profit for the full year 2015 will be at the level of the 2014 full-year profit. They will earmark EUR 165 million for investment projects, primarily invested into increasing and modernising their production capacities and infrastructure. The number of employees is planned to increase in 2015 both in Slovenia and abroad, by a total of more than 4%, to over 11,000. The operating plan for 2015 has been drawn up by taking into account certain assumptions regarding price levels, foreign exchange rates, and conditions in individual markets.

 

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