The Krka Group sales in the first six months of 2018 totalled €680.5 million, an increase of 4% over the same period last year, resulting in €101.7 million of net profit or an 11% year-on-year increase. This is Krka’s best half-year sales result to date. In terms of volume, sales were up 6% over the same period last year. All sales regions recorded an increase in sales.
Krka Group sales by Region
Accounting for a 32.1% share in total sales, the Group’s largest sales region was Region East Europe. The sales there reached €218.4 million, up €4.4 million or 2% over year-to-date. In the Russian Federation, the largest single market in Krka, the value of sales, expressed in local currency, increased by 12%. They sold €153.2 million worth of products, which is 2% less than in the same period last year due to the depreciation of the Russian rouble. Sales growth was recorded in most other markets of Eastern Europe and Central Asia.
In terms of sales, second largest region was Region Central Europe, where sales reached €161.5 million or 23.7% of total Group sales. Product sales in this region amounted to €7.1 million or 5% more than in the same period last year. In Poland, the largest market in the region, Krka sold €74.7 million worth of products, recording a 2% year-on-year increase.
Product sales in Region West Europe totalled €146 million, accounting for a 21.5% share of the Krka Group sales, up €2.8 million or 2% compared to the same period last year. The highest growth was recorded in the Scandinavian countries, Italy, Spain and the Benelux countries.
In Region South-East Europe, product sales amounted to €88.4 million, constituting 13% of Krka Group total sales. They sold €8.6 million worth of products or 11% more than in the same period last year. The highest sales growth was recorded in Serbia, Bosnia and Herzegovina, Croatia, Bulgaria and the Republic of Macedonia.
In Slovenia, sales saw a 3% growth and totalled €44.4 million. Sales in the Slovenian market constituted a 6.5% share of total sales.
Product sales in Region Overseas Markets amounted to €21.8 million (up 6%), accounting for 3.2% of total Group sales.
Krka Group sales by product and service group
Sales increased in all product and service groups. The Krka Group sold €568.3 million worth of prescription pharmaceuticals, an increase of 4% or €20.1 million compared to the same period last year. Prescription pharmaceuticals represented 83.5% of total Krka Group sales.
The ten leading prescription pharmaceuticals in terms of sales included medicines containing perindopril (Prenessa, Co-Prenessa, Amlessa, Co-Amlessa), losartan (Lorista, Lorista H, Tenloris), atorvastatin (Atoris, Atordapin), valsartan (Valsacor, Valsacombi, Vamloset, Co-Vamloset, Valarox), pantoprazole (Nolpaza), rosuvastatin (Roswera, Rosudapin), esomeprazole (Emanera), enalapril (Enap, Enap H, Elernap), clopidogrel (Zyllt) and in candesartan (Karbis, Karbicombi). These products may have different brand names in individual markets.
Year-on-year comparison shows the sales of non-prescription products were up €4.3 million or 8% and generated €58.5 million (8.6% share of total Group sales). Sales of animal health products increased by 1% to €35.2 million, accounting for 5.2% of Krka Group total sales. The sales of health resort and tourist services totalled €17.3 million, up 5% over the same period last year (2.5% share of total Group sales).
Research and development
In the first half of 2018, Krka received marketing authorisations for 8 new products in 18 pharmaceutical dosage forms and strengths. In the same period, a total of 400 new marketing authorisations were obtained for 84 products in various markets.
In the first six months of 2018, the Krka Group allocated €43.5 million to investments, of that €34.3 million to the controlling company. Investments primarily increased and modernised their production capacities, and research and development capacities.
At the end of June 2018, the Krka Group had 11,212 employees, which is 380 or 4% more than at the end of 2017. Together with agency workers, Krka employed 12,364 people (2% more than at the end of 2017). 5,758 people were employed abroad, accounting for 51% of the total regulary employed in Krka Group. Of all employees in the Krka Group, 54% have completed at least university level education.