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Krka, d. d., Novo mesto published Unaudited Financial Statements of the Krka Group and Krka, d. d., Novo mesto (Company) for 2020. The Krka Group generated revenue in total of €1,534.9 million, up 3% on 2019, reaching the highest value in the history of Krka. Unaudited net profit of the Krka Group amounted to €288.9 million, a €44.6 million or 18% year-on-year increase, and was also the highest up to date. Operating results of the past year show that our vertical integrated business model has shown resilience in ensuring our flexibility and responsiveness to the ever-changing and challenging situations. The 2020 Annual Report of Krka will be published on Thursday, 15 April 2021.

 

Sales

The Krka Group generated revenue in total of €1,534.9 million, of which revenue from contracts with customers on sales of products and services amounted to €1,530.0 million, while revenue from contracts with customers on sales of materials and other sales revenue constituted the difference. The Krka Group revenue from contracts with customers on sales of products and services was €40.9 million or 3% higher over the 2019 results. Sales volume increased by 7%.

Regions East Europe, South-East Europe, West Europe and Central Europe recorded sales growth. Sales of prescription pharmaceuticals and animal health products grew.

Krka Group Product and Service Sales by Region

€ thousand

2020

2019

Index
2020/19

Slovenia

85,138

92,375

92

South-East Europe

199,406

191,320

104

East Europe

517,231

481,155

107

Central Europe

341,463

339,574

101

West Europe

341,057

336,098

101

Overseas Markets

45,664

48,558

94

Total

1,529,959

1,489,080

103

 

Region East Europe generated €517.2 million, up 7% compared to 2019, and was the largest region of the Krka Group in terms of sales.

Region Central Europe, comprising the Visegrad Group and the Baltic States, followed with €341.5 million in sales. We recorded 1% growth compared to the year before, sales denominated in local currencies were higher.

Region West Europe generated €341.1 million and was the third largest Krka Group region in terms of sales value. We recorded a 1% increase compared to the year before.

In Region South-East Europe, product sales were valued at €199.4 million, a 4% rise compared to 2019.

In Slovenia, sales reached €85.1 million, down 8% compared to 2019.

Region Overseas Markets accounted for a 3% share of total Krka Group sales and generated product sales worth €45.7 million, a 6% year-on-year drop.

Krka Group Sales by Product and Service Group

€ thousand

2020

2019

Index
2020/19

Human health medicines

1,424,292

1,380,512

103

– Prescription pharmaceuticals

1,300,640

1,247,250

104

– Non-prescription products

123,652

133,262

93

Animal health products

75,913

69,094

110

Health resorts and tourist services

29,754

39,474

75

Total

1,529,959

1,489,080

103

The Krka Group sales of prescription pharmaceuticals amounted to €1,300.6 million, up 4% year on year.

Sales of non-prescription products totalled €123.7 million, a 7% year-on-year drop, and accounted for 8.1% of total sales.

Sales of animal health products grew by 10% and amounted to €75.9 million (5% of total sales).

Sales of health resorts and tourist services recorded €29.8 million, down 25% compared to 2019 (1.9% share of total sales).

 

Research and Development

In 2020, we obtained marketing authorisations for 20 new products: 16 prescription pharmaceuticals, two non-prescription products, and two animal health products. We completed more than 200 various registration procedures granting us marketing authorisations for new products and the established ones for sale in new markets.

Investments

In 2020, the Krka Group allocated €76.6 million to investments, of that €61.3 million to the controlling company. We primarily invested in development capacities, manufacturing upgrades, quality management, and our own production-and-distribution centres across the world. In this period, our investments lagged behind the plan due to the COVID-19 pandemic impact on investments, primarily construction industry, yet with no material impact on the realisation of the related strategic guidelines.

Employees

At the end of 2020, the Krka Group had 11,677 employees, of which 5,418 worked abroad, a good 46% of the total Krka Group headcount. The proportion of Krka Group employees with at least university-level qualifications was 51%, of that 206 employees held doctoral degrees. Together with agency workers, the Krka Group had 12,631 employees.

Jože Colarič appointed President of the Management Board and CEO

At its meeting of 27 January 2021, the Supervisory Board appointed the current President of the Management Board and Chief Executive Officer Jože Colarič for another six-year term commencing on 1 January 2022. The Supervisory Board also authorised him to draw up a proposal for appointing other members of the Management Board by November 2021 at the latest. The six-year term of office of the current Management Board members expires on 31 December 2021.

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