6. 7. 2017

Krka Group operations in the first half of 2017

3 min. read

The Krka Company Supervisory Board was convened today and briefed by the Management Board on preliminary operations results for the first half of 2017 and on the acquisition project in China. The Supervisory Board will review the final results for the first half of 2017 at its meeting on 26 July 2017, and Krka’s performance results will be published on the subsequent day. The 23rd Annual General Meeting of the Krka Company was also held today, starting at 1 p. m. at the Šport Hotel in Otočec, Slovenia. Krka’s President of the Management Board presented to the shareholders all the information previously disclosed to the members of the Supervisory Board.

Krka Group sales by Region
The Krka Group sold €655 million worth of products and services in the first half of 2017, up €51.2 million or 8.5% compared to the first half of last year. This is Krka’s best half-year sales result to date. Sales in markets outside Slovenia totalled €612.1 million, which represents a solid 93% of the Group’s total sales.

The largest sales region was Region East Europe, where Krka generated €214 million, which represents 32.7% of overall sales. Year-on-year sales there increased by €38.4 million or 22%, which is the highest absolute and relative sales growth among all Krka sales regions. The second largest region in terms of sales was Region Central Europe, where Krka generated €154.4 million (up 9%), which is 23.6% of total Group sales. Product sales in Region West Europe amounted to €143.2 million in the six months of 2017, which represents a 21.9% share in Krka Group sales and is a decrease by 5% compared to the same period last year. In Region South-East Europe sales amounted to €79.8 million, a 4% year-on-year increase; this represents 12.2% of Group sales. Sales in the domestic market were up 4% to €43 million, which represents 6.5% of total sales. Product sales in Region Overseas Markets totalled €20.7 million (12% increase), which represents 3.1% of overall Group sales.

Krka Group sales by product and service group
The Krka Group sold €548.2 million worth of prescription pharmaceuticals, an increase by 10% or €48.8 million compared to the same period last year. Prescription pharmaceuticals represent 83.7% of Krka Group sales. Non-prescription product sales were up 8% compared to the same period last year, to €54.2 million (8.3% of total Group sales), and animal health product sales were down 6% to €35 million, which is 5.3% of overall sales. Health resort and tourist services totalled €16.5 million in revenues, up 7% from the same period last year (2.5% of total sales), other sales revenues totalling €1.1 million.

Preliminary operating results
The Group’s estimated operating profit (EBIT) in the amount of €122.4 million is up 30% compared to the same period last year, with the estimated operating profit before depreciation and amortisation (EBITDA) totalling €176.9 million, up 20%.

The Group’s estimated profit before tax amounts to €109.2 million, a 35% year-on-year increase. The Group recorded €91.7 million of net profit, an increase by 31% compared to the same period last year.

The Krka Group net profit margin in the period January–June 2017 was 14.0%, its EBIT margin 18.7%, and its EBITDA margin 27.0%.