Business news

Krka decides on high dividend, Lahovnik joins supervisors

Novo Mesto, 09 July (STA) - The shareholders of Krka will get a dividend of EUR 4.25 gross per share this year, which is EUR 1.05 more than in 2019, the annual general meeting decided on Thursday. Economist Matej Lahovnik, the chief adviser to the government on the anti-coronavirus stimulus legislation, meanwhile became one of the four new supervisors.

The shareholders decided to earmark for dividends EUR 133.27 million of EUR 270.87 million in accumulated profit from last year.

Another EUR 68.8 million will be go for other reserves from profit or be transferred to next year.

The management was also authorised to buy Krka shares in the next 36 months.

However, the total amount of own shares is capped at 10% of share capital, the shares the pharmaceutical company already owns included.

The AGM also appointed four supervisors to the nine-strong supervisory board for a five-year term, with Julijana Kristl, Boris Žnidarič and chief supervisor Jože Mermal being in fact reappointed.

Matej Lahovnik was meanwhile newly appointed after Slovenian Sovereign Holding (SSH) put forward a counterproposal to squeeze out Peter Filipič, who had been originally put forward as a candidate, according to a press release from the MDS association of small shareholders.

SSH, the custodian of state assets, represented its own 9% stake in Krka, the 10.65% held by the state-owned KAD and the state's 7.21% stake.

While this is almost 27% in total, SSH had as much as 54% of the voting rights, since only slightly over 50% of all shareholders attended the AGM, the MDS said.

Krka chairman Jože Colarič also played a major role, representing over 10% of the voting rights.

Colarič also outlined the company's results from the first year, when the group generated EUR 803.8 million in sales revenue, up 6% from the same period last year, and EUR 160.3 million in net profit, up 15%.

Both the management and supervisors received discharge of liability for last year.