Krka's Revenues Up in 2011, Profit Down (adds)

Novo mesto, 19 January (STA) - The pharmaceutical group Krka generated

EUR 1.075bn in revenues in 2011, which is 6% more than in the year before.

However, the group's net profit was down to EUR 162m, according to

unaudited data released by the Novo mesto-based company on Thursday.

The core company generated EUR 957.6m in revenues, up 3% year-on-year,

while its net profit was also down to EUR 150m.

The group's profit

was affected by negative exchange rate differences, Krka's management told

the press a day after the results were discussed by the supervisory

board.

The group's 2011 operating profit is expected to be 2% to 3%

higher than in 2010, while the parent company' operating profit was lower

than the year before. Krka's operating profit stood at EUR 183m, while

profit before tax was at EUR 180m.

The group generated 91% of its

revenues abroad. Sales increased in western Europe and overseas markets as

well as in East and Southeast Europe, while the figures went down in

Central Europe and in Slovenia.

In 2011, Krka generated EUR 101.8m of

its sales in Slovenia, with prescription drugs accounting for most of the

sales. Its market share amounted to 12%.

Krka increased the number of

workers in 2011 by 5% and is planning the same increase in 2012, Krka CEO

Jože Colarič told the press in Novo mesto.

Krka moreover intends to

increase revenues by 6% in 2012. It is to build a EUR 200m facility in Novo

mesto, which will be able to produce 4.5 billion tablets and capsules

annually.

Colarič said however that the management was aware that

further investments will also be needed. Krka will decide whether to start

building infrastructure for a facility in Krško, and will continue

constructing a plant in Russia.

Krka will continue buying its own

stock, last year it acquired 5.7% of its own shares, and is planning to be

listed on the Warsaw Stock Exchange by the end of June. The move can

however be postponed or called off if the situation on the international

capital markets is unfavourable, Colarič added.