Krka (KRK) Q4 2024 earnings summary

Executive summary

• Achieved record 2024 sales of €1,909.5m, up 6% year-over-year, with net profit rising 13% to €353.4m, marking the highest sales since incorporation.

• Sales growth recorded in most markets, especially in Eastern and Central Europe, with Region East Europe becoming the largest sales region.

• 22 new products launched and over 1,000 marketing authorisation procedures completed in 2024.

• Krka operates in 70+ markets, serving over 100 million users worldwide with a diversified product portfolio.

• Maintained high profitability with EBITDA margin at 27.1% and EBIT margin at 22.3% for 2024.

Financial highlights

• Operating profit (EBIT) reached €425.7m, up 7% year-over-year; EBITDA at €518.2m, up 3%.

• Net financial result was a loss of €8.6m, mainly due to RUB volatility and FX losses, but improved from -€32.5m in 2023.

• EPS for 2024 was €11.62, with a 5-year CAGR of 8.1%.

• 5-year sales CAGR at 5.1%; net income 5-year CAGR at 7.7%.

• Net profit margin: 18.5% in 2024.

Outlook and guidance

• 2025 sales guidance raised to over €2,000m; net income guidance increased to €365m.

• 2025 CAPEX planned at €150m, up from €117m in 2024.

• Strategic goal to maintain sales growth of at least 5% per year and average EBITDA margin above 25%.

• Management notes potential risks from price erosion, raw material costs, currency fluctuations, and demand changes.