Krka (KRK) H1 2024 earnings summary

Executive summary

• Achieved record H1 2024 sales of €985.4m, up 7% year-over-year, with 94% generated outside Slovenia and volume growth of 3%.

• Net income rose 30% year-over-year to €221.6m, with a net profit margin of 22.5% and strong performance across all regions and most product groups.

• EBITDA reached €286.7m (margin 28.8%), and EBIT was €237.7m, both maintaining high profitability.

• Prescription pharmaceuticals drove growth, while OTC sales declined 10% year-over-year.

• Ten new prescription pharmaceuticals and one animal health product were added to the portfolio.

Financial highlights

• Revenue: €985.4m (+7% year-over-year); gross profit: €566.9m (+4% year-over-year).

• EBITDA: €286.7m (margin 28.8%); EBIT: €237.7m (margin 24.1%).

• Net profit: €221.6m (+30% year-over-year); EPS: €7.20 (+31% year-over-year).

• Cash and cash equivalents: €449.9m (+259% vs. 31 Dec 2023); equity: €2.41bn (+10% from year-end 2023).

• R&D expenses: €91.7m (9.3% of sales); CAPEX: €55m (+20% year-over-year).

Outlook and guidance

• 2024 guidance: sales €1,850m, net income just over €310m, CAPEX €150m.

• Prescription pharmaceuticals expected to account for 81% of sales.

• Employee count projected to rise by 3% in 2024.

• FY 2024 estimates and 2025 plan to be provided in November.