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In the first quarter of 2021, the Krka Group generated total revenue of €395.8 million, a 14% decrease compared to the first quarter last year, yielding €86.4 million of net profit, up 1% year-on-year.

The President of the Management Board and Chief Executive Jože Colarič explained: ‘In the first quarter of 2021, the Krka Group performed successfully and according to our expectations. We recorded the second highest sales total in the first quarter and the highest quarterly net profit to date. The first quarter last year was extraordinary as the demand peaked on the back of the first wave of the COVID-19 pandemic, resulting also in high sales. Besides that, certain cost items dropped owing to the pandemic, which further increased operating profit of the Krka Group. Because of this, the first quarters of 2020 and 2021 do not lend themselves to direct comparison. Set side by side with the first quarter of 2019, the Krka Group increased sales by 5%, operating profit by 33%, and net profit by 23% this year. We maintained a high level of profitability. The pandemic still impacts marketing activities. In the first quarter of the year, it affected sales of certain product groups, for example antibiotics, seasonal non-prescription products, and health resort and tourist services. We allocated 9.9% of revenue to research and development. We continue to provide for health and protection of our employees and uninterrupted supplies of all our products and pursue our set goals.’

Sales

Compared to the first quarter of 2019, sales went up by 5%.

Product and Service Sales by Region

 

Krka Group

€ thousand

Q1 2021

Q1 2020

Index 2021-20

Q1 2019

Index 2021-19

Region Slovenia

18,270

23,325

78

22,006

83

Region South-East Europe

53,276

63,794

84

50,409

106

Region East Europe

132,122

153,082

86

122,091

108

Region Central Europe

97,805

113,706

86

85,862

114

Region West Europe

80,535

94,312

85

84,285

96

Region Overseas Markets

12,515

13,510

93

12,635

99

Total

394,523

461,729

85

377,288

105

  Product and Service Sales by Category

 

Krka Group

€ thousand

Q1 2021

Q1 2020

Index 2021-20

Q1 2019

Index 2021-19

Human health medicines

368,010

432,600

85

351,142

105

– Prescription pharmaceuticals

340,921

389,389

88

314,367

108

– Non-prescription products

27,089

43,211

63

36,775

74

Animal health products

21,656

22,221

97

17,646

123

Health resorts and tourist services

4,857

6,908

70

8,500

57

Total

394,523

461,729

85

377,288

105

Research and Development

We intend to register new products and introduce additional development activities to provide for high quality and safety of established products and obtain marketing authorisations for 16 new products in 2021.

In the first quarter, R&D expenses totalled €39.1 million, accounting for 9.9% of revenue and 4% year‑on‑year growth.

Investments

In the first quarter of 2021, the Krka Group allocated €9.8 million to investments, of that €7.9 million to the controlling company.

Employees

At the end of March, the Krka Group had 11,639 employees, of that 5,375 abroad, which constituting 46% of the total Krka Group headcount. The Krka Group employees with at least university-level qualifications accounted for 51% of all personnel, and 204 of them held doctoral degrees. Together with agency workers, the Krka Group had 12,539 employees on payroll.

Business Performance by the End of the Year 2021

Business performance in 2021 will further depend on the course of the COVID-19 pandemic and the global recovery after it ends. Pandemic-related circumstances and processes remain highly volatile, but we pursue all key activities, for example development, purchasing, manufacture, and sales, in accordance with the set goals and key strategic guidelines for 2021.

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