Krka Group: Results of 2016
The results of Krka operation in 2016 amounted to 1.174 billion euros of revenues and 108.5 million euros of profit. Krka increased sales by 11% and revenues by 1%. Taking into account the overall situation in the market, this is a good result. In 2017, the Company plans to receive 1.220 billion euros of revenue and exceed the last year’s level of profit. It is planned to expand the staff by 4% as well. At the same time, the investments in the development will reach 174 million euros.
Sales Growth at Lower Income
Last year, the Eastern Europe again was the largest area of Krka product sales, where the overall turnover amounted to 332.3 million euros. The largest share of turnover fell on Russia (225.9 million euros). The second region in terms of sales was the Central Europe (286.7 million euros) with the key market in Poland, in which the amount of sold goods was worth 140.6 million euros. The third region in terms of sales was the Western Europe (282.4 million euros). Germany, Spain and France were the largest consumers of the Krka products. Germany, the most important Western European market, brought 92.6 million euros. The sales around the South-Eastern Europe brought Krka 152.4 million euros, while in Slovenia the Company received 85.1 million euros.
Krka: Investments in Slovenia
Krka investments in 2016 amounted to 131.8 million euros, 80.7 million euros of which were in the parent company and 51.1 million euros in the subsidiaries. Investments primarily focused on the development and modernization of production and research infrastructure. The Development and Control Centre 4 in the production complex in Novo Mesto has become the Krka’s key investment for the purpose of development activities and quality assurance in the coming years.
The Emphasis on New Drugs
The Krka Group has been recently investing 110 million euros per year in the research and development activities. It continues constant development of new drugs and expands the range of products. Currently, more than 170 research and development projects are under development, which involve more than 600 Krka employees—specialists in various fields such as pharmaceutics, chemistry, medicine, biology and physics.
The leading positions belong to the drugs for cardiovascular diseases. They are followed by medicine for the gastrointestinal and central nervous system diseases as well as the treatment of tumours and diabetes. The autoimmune diseases are the new area, in which the Group employees will start working.
In 2016, Krka registered 19 new products in 41 dosage forms and strengths. Following the passage of various registration procedures, the Company received 546 certificates for prescription drugs, non-prescription dugs, and veterinary products. Three patents for invention were filed. During the year of 2015, two international patent applications were filed based on the priority developments. In Slovenia, 84 trademarks were registered. In general, 38 international brands and 61 national trademarks were submitted for registration.