Krka: steady sales, rising profits
Ljubljana – Slovenian drugmaker Krka d.d. turned in a solid performance in 2009, with total sales reaching EUR950m, similar to turnover in 2008. Profits rose by around 10% year-on-year to EUR173.7m. The results announced at the end of February confirmed predictions made by Krka board members in January in Novo Mesto.
The drugmaker achieved about 80% of its sales with prescription medicines, while business with OTC drugs slowed by 10% to about a90m. Domestic sales grew by 1% to EUR105.8m, while sales in central Europe reached EUR267.6m, up by 6%. Krka’s business in western Europe remained constant (EUR225.1). Sales in southeastern and eastern Europe fell to a352.5m, about 4% less than in 2008. The company confirmed its 2010 forecast that group net profit this year would fall to EUR159m on sales of around a1bn, due to rising costs and increased foreign exchange risks. It also announced that it expects further growth in central Europe, which currently accounts for 28% of its sales. Overall, Krka reported that it has reduced investments in R&D (EUR91.1m) in response to last year‘s general economic downturn. However, construction of a new production plant for solid pharmaceuticals that was kicked off last summer is still ongoing.