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Slovenia's Krka Says Group 9-mo Net Profit Falls 3.0%, Sees '09 Sales Flat, Net Profit in Line

Nov 5, 2009, 7:04:58 PMArticle by Kire Nedelkovski
share
November 5 (SeeNews) - Slovenian blue-chip drug maker Krka on Thursday reported a 3.0% drop in its nine-month group net profit to 108.3 million euro ($160.9 million) and said full-year sales will be in line with the 2008 mark.

Slovenia's Krka Says Group 9-mo Net Profit Falls 3.0%, Sees '09 Sales Flat, Net Profit in Line

"Sales of products and services in 2009 will reach 950 million euro, with which the Group will match the 2008 sales figures," the company said in a statement posted on the website of the Ljubljana Stock Exchange (LJSE).

The planned net profit of 161 million euro in 2009 will be achieved, the statement added.

The Krka Group said it expects to post a 6.0% sales growth to 1.008 billion euro in 2010. Net profit is seen at 159 million euro next year.

The planned value of investments next year is 176 million euro.

An increase of just under 5.0% overall in the workforce is also planned for 2010, in Slovenia and abroad. The group expects to have 8,055 employees at the end of 2009.

Group operating profit was unchanged at 154.9 million euro through September.

The group generated total income of 700.2 million euro with total expenses for the first nine months of 2009 at 559.4 million euro, 2.0% higher than the same period last year.

Parent company Krka's nine-month sales revenues from prescription pharmaceuticals, self-medication products, cosmetics and animal health products rose 2.0% to 614.7 million euro, while group sales were flat at 689.9 million euro.

The group generated 89% of sales through September on markets outside Slovenia.

Sales in southeast Europe totalled 95.1 million euro over the first three quarters of 2009, 3.9 million euro lower than the same period last year. Sales were down in Bulgaria (-6.0%) and Croatia (-16%) as was well as in Serbia and Montenegro, while sales grew in Romania (+13%), Bosnia and Herzegovina (+12%), Macedonia (+13%), Albania (+34%) and Kosovo (+7.0%). Croatia remained the largest market in the region with 31.3 million euro in sales through September.

The group allocated 72.1 million euro for investment in the first nine months of 2009, with 66 million euro invested by the controlling company. Over 20 investment projects are currently underway. Due to the delay of some projects and uncertain business conditions, some of the planned investments were postponed to 2010, so the estimated value of investment this year is seen at 104 million euro, the company said.

Krka shares closed 0.45% higher at an average price of 72.23 euro on Thursday.

($ = 0.6732 euro)

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