Krka, D. D., Novo Mesto · LJSE:KRKG
Krka, D. D., Novo Mesto — H1 2024 Earnings Presentation
22 slides from Krka, D. D., Novo Mesto's earnings presentation, Jul 18, 2024
Slide 1: Krka Group Business Performance H1 2024
Krka Group Business Performance H1 2024 David Bratož, Member of The Management Board Brane Kastelec, Finance Director 18 July 2024 www.krka.biz
Slide 2: Celebrating 70 Years Anniversary
Celebrating 70 Years Anniversary ~ www.krka.biz
Slide 3: Well-Diversified Activities
Well-Diversified Activities Providing access to high quality affordable medicines Krka‘s presence on 70+ markets in 6 sales regions 49 subsidiaries outside Slovenia: 45% of all Krka Group workforce Over 100 million people use Krka‘s medicines worldwide Sales regions 17.5 bn FDF sold annually in vari
Slide 4: Krka Group Business Performance: H1 2024 highlights
Krka Group Business Performance H1 2024 highlights SALES 5Y CAGR: 5.4% ✓ Record H1 Sales accounted to €985.4m; +7% yoy; volume: +3% In ✓ Strong EBITDA of €286.7m; sustaining margin of 28.8% well above guidance EUR million 802 807 857 920 985 ✓ Record H1 EBIT of €237.7m, and strong net income growth
Slide 5: Krka Group Sales by Regions
Krka Group Sales by Regions Continuation of strong sales dynamics Largest market: Russian Federation (+9% yoy) 195 H1 2024 sales: EUR 980.8 million of goods 180 168 173 180 In and services (+7% yoy; EUR +64.4 m) EUR million H1 20 H1 21 H1 22 H1 23 H1 24 Overseas Markets Slovenia 2nd market Poland (+
Slide 6: Broad Product Portfolio
Broad Product Portfolio Sales by products and service groups H1 2024 Health-resort & +4% tourist services Majority of sales for +2% Animal health products EUR 23.3 m; +9% companion animals EUR 60.4 m; (EUR +2.3 m) (EUR +0.5 m) Prescription pharmaceuticals (Rx) 2.4% EUR 823.4 m; (EUR +69.7 m) Non-pre
Slide 7: Our key therapeutic areas
Our key therapeutic areas Representing over 80% of total sales revenue Cardiovascular Central Gastrointestinal nervous Analgesics Diabetes Hypertension Lipides tract system Key Antidepressants, DPP-4 inhibitors Sartans, ACE Statins and other antipsychotics Proton pump NSAIDs, opioids, therapeutic in
Slide 8: Research & Development
Research & Development Committed to continuous development of innovative branded generic products 11 new MA for products in Q1 2024 Nearly 600 MA procedures finalised Highligted MA: ✓ Varesta (vortioxetine) treating depression. ✓ Apremilast Krka (apremilast) and Eltrombopag Krka (eltrombopag) film-c
Slide 9: Krka's Innovative Medicines
Krka’s Innovative Medicines Innovative branded generic producer with own R&D ADVANCED UNIQUE STATE-OF-THE-ART UNIQUE PHARMACEUTICAL SINGLE PILL EQUIPMENT Delivering the most demanding FORMULATIONS Great possibility of STRENGTHS Tailoring the COMBINATIONS Synergistic action & 150 projects in terms of
Slide 10: Investments
Investments Increasing the resilience and flexibility of our business model CAPEX H1 2024: €54.9m, +20% yoy; FY 2024 plan: €150m 150 CAPEX EUR m 132 Aiming the investments predominantly for increasing and technologically upgrading 100 106 production facilities and capacities for development and qual
Slide 11: Consolidated Income Statement
Consolidated Income Statement Maintaining high profitability EUR thousand H1 2024 (%) H1 2023 (%) YoY +9% 750,965 Revenue 985,418 100 920,430 100 7% 686,802 Costs of goods sold 418,540 376,698 11% Gross profit 566,878 58 543,732 59 4% 418,540 376,698 Other operating income 3,222 0 2,605 0 24% 40.9%
Slide 12: FX Impact
FX Impact The rouble appreciated in H1 2024, but was significantly lower than in H1 2023 EUR/RUB 2022 - 2024 160 ✓ RUB, USD and PLN FX rate have a significant impact on the 140 Group's net financial result, while the effects of other FX are 120 marginal. 97.5 100 93.3 100 85.3 78.4 ✓ The FX impact o
Slide 13: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position Strong financial position without leverage burden EUR thousand 30.6.2024 (%) 31.12.2023 (%) change change % ASSETS 2,857,345 100 2,764,291 100 93,054 3% Non-current assets 1,017,717 36 1,059,267 38 -41,550 -4% Current assets 1,994,393 70 1,705,024 62 289,
Slide 14: Krka Group Operating Results
Krka Group Operating Results Maintaining high profitability Profitability Margins development 70% EUR million H1 2024 H1 2023 yoy 59.4% 60% 56.9% 56.7% 56.8% 57.5% Gross profit 566.9 543.7 4% 50% Gross profit margin 57.5% 59.1% 5y average EBITDA margin: 28.9% EBITDA 283.7 288.6 -2% 40% 32.7% 29.5% 2
Slide 15: Performance Indicators
Performance Indicators Maintaining long-term momentum Revenue in € million EBITDA in € million 1806 1850 600 502 504 2,000 1717 464 488 1535 1565 1,500 plan 450 985 5y average (2019-2023) 284 1,000 300 EBITDA margin: 28.9% 500 H1 150 5Y CAGR 6.4% 5Y CAGR 8.0% 0 0 2020 2021 2022 2023 2024 2020 2021 2
Slide 16: Dividend Policy and Share Buyback
Dividend Policy and Share Buyback Management committed to stable capital allocation DPS and dividend yield* for the business year Treasury shares as of total Dividend approved by AGM Repurchased almost €14 m of treasury shares in 2023 8.00 8% 8.0% 7.00 10Y CAGR 13.6% 7% 6.1% 5.9% 6.00 6% 6.0% 5.4% 5
Slide 17: Share Information and Shareholder Structure
Share Information and Shareholder Structure Stable shareholder structure (KRKG SV) Average daily turnover and stock price YTD Largest shareholders as of 30 June 2024 1,000 150 759 800 746 653 125 EUR thousand 20.2% Individual Slovenian investors 600 634 100 41.1% Slovenian institutional investors 6.
Slide 18: ESG Governance of Krka Group
ESG Governance of Krka Group CSRD/ESRS reporting requirements implementation Material ESG Topic Groups of the Krka Group Key Activities: ✓ Renewal of the ESG policy and integration of PRODUCT QUALITY & PATIENT SAFETY sustainability into the Krka Group Development Strategy (2024-2028), including stra
Slide 19: 2024 plan and key risks & challenges
2024 plan and key risks & challenges Guidance in line with strategic goals INTRODUCTION OF NEW 2024 GUIDANCE: PRODUCTS & MANAGMENT OF EXISTING PRODUCTS LIFE CYCLE Sales €1,850m Net income ≈ €310m+ est. CAPEX: €150m RECORDING STRONG PATIENT NEEDS & MARKETING REQUIREMENTS Key risks & challenges: & SAL
Slide 20: Long-term Stable Operating Business Growth
Long-term Stable Operating Business Growth Growing faster than global pharmaceutical market Sales revenue CAGR (2005–2023) 7.3% 18 1,800 Net income CAGR (2005–2023) 8.6% 16 1,600 Global pharma market CAGR (2005–2023) 5.7% 14 1,400 12 1,200 Pieces sold billion EUR million 10 1,000 8 800 600 6 400 4 2
Slide 21: Internally Confidential
INTERNALLY CONFIDENTIAL © Krka, d. d., Novo mesto
Slide 22: Disclaimer
Disclaimer The information, statements or data contained in this presentation has been prepared by Krka, tovarna zdravil, d. d., Novo mesto (hereinafter: the Company) and has been prepared solely for the purpose of informative presentation of the Company business operations. The presentation is not
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