Krka Group sees revenues rise 8% to €1.3bn

Krka Group, producer of human and animal health products, has reported that its revenues in the first nine months of 2023 amounted to €1.3bn (£1.14bn), up 8% year-on-year, resulting in €320.3m (£280.4m) of operating profit for the period, its highest to date.

Revenues from its animal health products increased from €69.3m (£60.6m) to €82.8m (£72.5m) during the period. Regionally, East Europe was the Krka Group’s highest-performing region in terms of sales, with product sales of €434.1m (£380.1m).

The second-best result was recorded in Central Europe, where the group sold €305m (£267.1m) worth of products.

Lastly, Western Europe was the third largest region, with €266.4m (£233.3m) worth of sales. The biggest climbers were Portugal (up 24%), Ireland (up 21%), the Scandinavian countries (up 16%), and the UK (up 15%).

Looking ahead, the group expects full-year sales of products and services to exceed targets, projected to total €1.7bn (£1.49bn), up 3.6% year-over-year

Additionally, full year sales of products and services are projected to total €1.8bn (£1.58bn) in 2024.

Jože Colarič, president of the management board and chief executive, said: “The Krka Group business was successful. Sales increased in all six sales regions and in most markets. In the first nine months, we recorded the highest operating profit (EBIT) to date, which increased by 37%. According to forecasts the Krka Group will exceed the annual 2023 sales target, reporting €1.7bn (£1.49bn) of product and services sales and a net profit of around 300m euros.

“The Supervisory Board presented the updated Krka Group Development Strategy for the 2024–2028 period. The main focuses are ensuring further sales growth and ranking among the leading generic pharmaceutical companies in individual markets and selected therapeutic classes. We will strengthen and optimise the vertically integrated business model. It serves as an effective strategic guideline and a competitive edge, as it enables us to manufacture products that meet high standards of quality, safety, and efficacy.”

He added: “We remain focused on the long-term profitability of the products we sell. We also plan to ensure growth through long-term business partnerships and targeted acquisitions, increasing sales by extending our market range and product portfolio.

“Our strategy pursues sustainability aspects and objectives of operations as we strive to preserve the economic, social and environmental responsibility towards the environments in which we operate. The revised strategy has served as the basis for the 2024 operations plan, which envisages Krka Group sales of €1.8bn (£1.58bn) and a net profit of somewhat more than €310m (£271.5m).”