Krka presented its operating results for the first half of 2017

Sales

The Krka Group sold €655 million worth of products and services in the first half of 2017. This is Krka’s best half-year sales result to date.

Krka Group sales by Region

Krka’s largest sales region was Region East Europe, where sales totalled €214 million, which is 32.7% of overall sales. It was here that Krka recorded the highest sales growth compared to the same period last year, in absolute (up €38.4 million) and relative (up 22%) terms. The key factor was sales growth in the Krka largest individual market, the Russian Federation, which was followed by the majority of the Region’s remaining 12 markets of Eastern Europe and Central Asia. Product sales in the Russian Federation totalled €156.4 million.

In Region Central Europe, consisting of the Visegrad countries and the Baltic countries Lithuania, Latvia and Estonia, Krka sold €154.4 million worth of products, which is 23.6% of overall Group sales, making this Krka’s second largest sales region. Sales there were up 9% compared to the same period last year. The Region’s leading market is Poland, where they sold €73.1 million worth of products, and sales growth was recorded in all markets of the Region, apart from Slovakia.

Region West Europe followed with €143.2 million of sales, which represents 21.9% of total sales. This is a 5% year-on-year decrease, whereby second quarter sales exceeded those of last year. The largest sales were generated in Germany (€44 million), followed by France and Spain.

Product sales in Region South-East Europe amounted to €79.8 million, up 4% compared to the same period last year and representing 12.2% of Group sales. The leading market in the Region is Krka’s key market Romania with sales of €27.2 million, while the other main drivers of sales growth were Serbia, Croatia and Macedonia.

In Slovenia Krka sold €43 million worth of products, which is 6.5% of Krka Group sales. Sales revenues increased by 4%. With a 9.1% market share, Krka has remained the leading provider of pharmaceuticals in Slovenia.

Product sales in Region Overseas Markets totalled €20.7 million (12% increase), a 3.1% share of Krka Group sales. The majority came from prescription pharmaceuticals, which are sold under Krka’s own brands in most of the Region’s markets. The leading markets were Iran, Republic of South Africa and Vietnam.

Krka Group sales by product and service group

The Krka Group sold €548.2 million worth of prescription pharmaceuticals, up one tenth compared to the same period last year, which represents 83.7% of Krka Group sales. Sales increased in regions East Europe (by 21%), Central Europe (by 11%), South-East Europe (by 5%), Slovenia (by 2%) and Overseas Markets (by 11%), while in Region West Europe they decreased (by less than 1%).

The leading ten prescription pharmaceuticals in terms of sales have included Lorista (losartan) and its combination with a diuretic, Atoris (atorvastatin), Nolpaza (pantoprazole), Prenessa (perindopril) and its combination with a diuretic, Valsacor (valsartan) and its combination with a diuretic, Emanera (esomeprazole), Enap (enalapril) and its combination with a diuretic, Roswera (rosuvastatin), Zyllt (clopidogrel), and Amlessa (perindopril and amlodipine) together with its combination with a diuretic. The highest absolute year-on-year sales growth was recorded by Lorista (losartan) and its combination with a diuretic, Nolpaza (pantoprazole), Valsacor (valsartan) and its combination with a diuretic, Amlessa (perindopril and amlodipine) and its combination with a diuretic, and Emanera (esomeprazole). These products may have different brand names in individual markets.

For non-prescription products, sales value was up 8% to €54.2 million (8.3% of Krka Group sales), and animal health product sales were down 6% to €35 million, which is 5.3% of Krka Group sales. Health resort and tourist service sales totalled €16.5 million, a 7% year-on-year increase (2.5% share of Krka Group sales).

Research and development

In the six months of 2017 Krka obtained marketing authorisations for nine new products in 17 dosage forms and strengths, more than in the same period last year. In total, they acquired 272 new marketing authorisations for 75 products in different markets.

Investments

In the first half of 2017 the Krka Group allocated €52.6 million to investments, of which the controlling company invested €44.3 million and subsidiaries €8.3 million. Krka Group investments for the full year 2017 are expected to amount to just over €120 million, which is less than planned and less than last year. The estimated amount is the result of favourable prices negotiated with contractors and equipment suppliers. This amount does not include potential takeovers.

Employees

At the end of June the Krka Group had 10,842 employees. Krka’s subsidiaries and representation offices outside Slovenia employ 54% of the Krka Group employees, and 56% of the entire Krka team have at least a university level degree. There were 1,346 temporary agency workers at the end of June, 132 more than at the end of 2016.

With different activities, the Krka Group promotes initiative and innovation, cooperation and team work, loyalty and commitment in employees. For decades they have been conferring token awards on employees of all Krka companies for staying with them 10, 20, 30, 35 and 40 years. This year, 781 recognition awards were conferred to employees who helped build the foundations of the Krka Group and who symbolise loyalty to Krka.

Every year they also select the best employees and managers, strengthening loyalty in employees and boosting a positive atmosphere. At the level of organisational units, 50 best employees and 18 best managers were singled out this year, and at the level of the entire Group, 10 best employees and 5 best managers.

This year Krka again conferred awards for inventive work, as employees’ proposals make a relevant contribution to improving work processes and cutting costs. In the first half of 2017, 280 proposers had put forward 336 proposals.

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