Krka (KRK) Q2 2026 earnings summary

Executive summary

• Revenue reached €1,119.3 million in H1 2026, up 7% year-over-year, with EBIT up 20% and net profit at €260.2 million, up 5%.

• Record sales achieved across all regions, with 94% of sales outside Slovenia and exports accounting for 96% of product sales.

• Prescription pharmaceuticals and a favorable product mix drove growth, supported by strong demand and operational efficiency.

• Seven new products launched, including six prescription pharmaceuticals and one animal health product.

• Strategy execution and investments in R&D and capacity expansion position the company well for 2026 objectives.

Financial highlights

• Revenue for H1 2026 was €1,119.3 million, up 7% year-over-year; gross profit rose 12% to €682.3 million, lifting gross margin from 57.9% to 61%.

• Operating profit (EBIT) increased 20% to €309.2 million; EBITDA margin reached 31.9% (€357.5 million).

• Net profit rose 5% to €260.2 million, with a net profit margin of 23.2%.

• Cash and cash equivalents stood at €388.1 million, up 12% from year-end 2025; equity increased 11% to €2,629.2 million.

• Second quarter gross margin reached 62%, an exceptionally high level unlikely to be sustained long-term.

Outlook and guidance

• Full-year 2026 revenue projected at €2,144 million (+5% year-over-year), with net profit expected at €405 million.

• Targeting average annual sales growth of at least 5% and maintaining EBITDA margin above 25%.

• Over €140 million planned for investments, mainly in production expansion and modernization.

• Employee headcount projected to rise by 2%.

• Continued focus on sustainable growth, financial strength, and long-term value creation.