25. 2. 2015

Krka’s business performance in 2014

5 min. read

The Management Board of Krka, d. d. held a press conference, presenting to the public the unaudited performance results of the Krka Group and the Krka Company for 2014.

Krka’s business performance in 2014

President of the Management Board Jože Colarič told the press the Group had sold EUR 1,191.6 million worth of products and services in the reported period, which is 0.8% less than in 2013 measured in EUR. Sales growth in terms of the quantity of products was 10%. Unaudited Group profit for the year totalled EUR 166.2 million, down EUR 6.6 million, or 4%, from the year before. Krka Company sales amounted to EUR 1,134.2 million (up 2%), generating an unaudited profit for the year of EUR 144.4 million (down 12%).

Krka Group sales by Region
The Group’s leading sales region was Region East Europe, which contributed 34.3%, or EUR 408.7 million, of overall sales, which is a 4% decrease compared to previous year’s sales.

Krka’s second largest sales region was Region Central Europe, where sales were EUR 273.0 million, representing 22.9% of overall Group sales and decreasing by 4% from 2013. Region West Europe was third in terms of sales in 2014, contributing EUR 251.1 million, which is 21.1% of total Krka Group sales and represents an increase by 11% from the year before. In Region South-East Europe Krka sold EUR 155.3 million worth of products, which represents 13.0% of Group sales and is an increase by 7% from 2013. In the new sales region Overseas Markets Krka sold EUR 25.5 million of products (down 18% compared to 2013), which represents 2.1% of Group sales. Product and service sales in Slovenia were down one tenth from 2013, to EUR 78.0 million, which is 6.6% of Group sales.

Krka Group sales by product and service group
Krka’s most important group of products in terms of sales remain prescription pharmaceuticals, which contributed EUR 990.6 million in the reported period, representing 83.1% of Krka Group sales and increasing by 1% from 2013.

Atoris (atorvastatin) remained the leading prescription pharmaceutical in terms of sales in 2014, with the other top ten best-selling prescription pharmaceuticals being Lorista (losartan), Enap (enalapril), Prenessa (perindopril), Nolpaza (pantoprazole), Emanera (esomeprazole), Zyllt (clopidogrel), Roswera (rosuvastatin), Valsacor (valsartan) and Karbis (candesartan). Products are marketed under different brand names in individual markets.

Non-prescription product sales amounted to EUR 122.0 million, down 16% year-on-year, with their share in overall sales at 10.3%. The decrease was mainly the result of less frequent cold and flu conditions, and of the depreciation of the local currencies in the Russian Federation and Ukraine, Krka’s largest individual markets for products available without prescription. Products with highest sales were Herbion, Bilobil and Septolete. Animal health product sales, which represented 3.9% of total sales, amounted to EUR 46.5 million, up 9% from 2013. Products with the highest sales were Floron, Enroxil and Fypryst. Health resort and tourist services generated EUR 30.0 million of sales, a decrease by 1% compared to the year before, and represented 2.5% of overall 2013 Krka Group sales.

Research and development
In 2014 Krka obtained marketing authorisations for 19 new products (13 prescription pharmaceuticals and six animal health products) in 47 different pharmaceutical dosage forms and strengths. Applying different European and national marketing authorisation procedures they obtained 460 new approvals in the reported period for prescription pharmaceuticals, non-prescription products and animal health products.

Investments
In 2014 the Krka Group allocated EUR 173.7 million to investments, of which the controlling company invested EUR 137.5 million and subsidiaries EUR 36.2 million. Investments were primarily increasing and modernising the Group’s production, and research and development infrastructure.

Employees
At the end of 2014 the Krka Group had 10,499 employees, of which 4,887 (46.5%) worked in Slovenia and 5,612 (53.5%) abroad. Compared to the figures for 2013, the number of employees at Group level increased by 451, or 4%. The number of Krka’s employees outside Slovenia increased by 410, or 8%, while in Slovenia it rose by 41, or 1%.

Krka Group staff with a university level education or higher represent 55% of the entire team, which is 5,771 employees.

Plans for 2015
Krka Group sales in 2015 are planned to amount to EUR 1.26 billion, with sales outside Slovenia expected to represent 94% of total sales. Profit is planned at the level of the profit reported for 2014.

The estimated value of investments is EUR 165 million, to be allocated mainly to expanding and modernising production facilities, research and development facilities, and infrastructure. The number of employees is planned to increase in 2015 both in Slovenia and abroad, together by 4%.

The operating plan for 2015 has been drawn up by taking into account certain assumptions, such as price fluctuations, currency fluctuations, and conditions in individual markets. In the event of major deviations, the Company Management Board will revise the annual plan and adjust it to new circumstances.


Krka’s 2014 annual report will be released on Thursday, 2 April 2015.

More information in press release