20. 7. 2023
Krka Reports Half-Year 2023 Business Results
2 min. read
In the first six months of 2023 Krka Group revenue amounted to €920.4 million, up 7% year on year, resulting in €236.2 million of operating profit – the highest to date. Net profit totalled €170.1 million, which is more than a half of the planned 2023 full-year net profit. The Krka Supervisory Board discussed the 2023 Semi-Annual interim report for the Krka Group and Krka, d. d. at its regular meeting yesterday.
The President of the Management Board and Chief Executive Jože Colarič explained: “The Krka Group operating results for the first half of the year are good. Sales increased in all six sales regions, in most our key markets, and for all product and service groups. The reported half-year operating profit is the highest to date; it increased by 70% despite inflation pressures. Net profit has exceeded one half of the planned 2023 full-year net profit; however, it is down 28% compared to that of the same period last year, when we recorded substantial foreign exchange gains. The gap between this year’s and last year’s net financial result, which is quite large for the first half of the year, is expected to close by the end of the year. The results for the six months to June are encouraging. We thus assume that 2023 targets are realistic and that we will reach the planned €1,755 million of sales and the planned net profit around €300 million.”
Krka Group Financial Highlights
| € thousand | Index | ||
| Revenue | 920,430 | 857,443 | 107 |
| – Of that revenue from contracts with customers (products and services) | 916,471 | 853,440 | 107 |
| Gross profit | 543,732 | 433,687 | 125 |
| Earnings before interest, tax, depreciation and amortisation (EBITDA) | 288,559 | 192,373 | 150 |
| Operating profit (EBIT) | 236,233 | 139,250 | 170 |
| Profit before tax (EBT) | 206,856 | 277,059 | 75 |
| Net profit | 170,128 | 236,151 | 72 |
| Effective tax rate | 17.8% | 14.8% | |
| R&D expenses | 85,654 | 81,020 | 106 |
| Investments | 45,663 | 49,479 | 92 |
Performance Ratios
| Gross profit margin | 59.1% | 50.6% |
| EBITDA margin | 31.4% | 22.4% |
| EBIT margin | 25.7% | 16.2% |
| EBT margin | 22.5% | 32.3% |
| Net profit margin (ROS) | 18.5% | 27.5% |
| Return on equity (ROE) | 15.4% | 22.6% |
| Return on assets (ROA) | 12.5% | 17.6% |
| Liabilities/Equity | 0.221 | 0.251 |
| R&D expenses/Revenue | 9.3% | 9.4% |
Sales
Product and Service Sales by Region
Region Slovenia,6.2
Region South-East Europe,13.9
Region East Europe,32.8
Region Central Europe,23.2
Region West Europe,19.8
Region Overseas Markets,4.1