Krka (KRK) Q3 2024 earnings summary

Executive summary

• Revenue for 1-9 2024 reached €1,434.7m, up 7% year-over-year, with 94% generated outside Slovenia.

• Net income rose 19% year-over-year to €281.0m, with a net profit margin of 19.6%.

• Largest sales region was East Europe (33.9% of total), followed by Central and West Europe.

• Raised full-year 2024 estimates: sales to €1,890m (+5.1% yoy) and net profit to €339m (+8.0% yoy).

• Expanded R&D and CAPEX investments to support innovation and production capacity.

Financial highlights

• Revenue: €1,434.7m (+7% yoy); gross profit €819.3m (+6% yoy); EBITDA €401.7m (+1% yoy); EBIT €332.6m (+4% yoy); net profit €281.0m (+19% yoy).

• Basic EPS increased 20% year-over-year to €12.17.

• Gross profit margin 57.1%, EBITDA margin 28.0%, EBIT margin 23.2%, net profit margin 19.6%.

• Cash and cash equivalents: €315.8m (+81% vs. year-end 2023).

• Market capitalization: €4.5bn (+24% vs. year-end 2023); share price: €136.00 (+23.6%).

Outlook and guidance

• FY 2024 sales guidance raised to €1,890m and net income to €339m.

• FY 2025 guidance: sales €2,000m, net income €354m, CAPEX €150m.

• Investments planned at €130m in 2024 and €150m in 2025, focused on production and infrastructure.

• Targeting average EBITDA margin of at least 25%.