Last Thursday, Krka published its preliminary H1 2025 results. According to the report, in H1 2025, Krka’s revenue grew by 6% YoY, EBITDA increased by 7% YoY, while net income amounted to EUR 246.7m, up 11% YoY, broadly in line with our projections.
As stated in the report, these are the best H1 business results since the Group’s incorporation. Starting with revenue, Krka exceeded EUR 1bn in sales for the first time, reaching EUR 1,048m (+6.4% YoY). The Group recorded growth across five of six sales regions and all major markets, except Region Overseas Markets.
Breaking the results down by region, the strongest performance was recorded in Region East Europe, with sales of EUR 370.4m (+11% YoY). Within the region, Russia remained the largest individual market, with sales of EUR 218.6m, up 12% YoY. Ukraine and Uzbekistan followed, growing by 12% and 8% YoY, respectively. Krka reported growth in all other markets in Eastern Europe and Central Asia, with the exception of Kazakhstan and Georgia.
Next, Region Central Europe generated EUR 242.5m in sales (+6% YoY). Poland, Krka’s second-largest individual market, contributed EUR 122.0m, growing by 12% YoY. Czechia recorded EUR 34.4m (+9% YoY), while Hungary saw a 9% decline to EUR 28.0m. Most other markets in the region also recorded growth.
Region West Europe followed with EUR 187.0m of revenue, making it the third largest by value. In Germany, the region’s largest market and Krka’s fourth-largest overall, sales amounted to EUR 46.9m, up 3% YoY. The most notable regional increases were recorded in Belgium (+38%), Austria (+26%), and the Netherlands (+20%).
In Region South-East Europe, revenue reached EUR 148.2m (+8% YoY), with growth across all markets. In Romania, product sales grew to EUR 40.3m (+5% YoY). Meanwhile, in Region Slovenia, revenue reached EUR 64.4m (+8% YoY), with Krka maintaining its leading position on the domestic market, holding a 7.3% market share according to the latest available data.
Region Overseas Markets was the only segment to record a revenue contraction in H1.
Breaking down revenue by product groups, all categories recorded growth. Human health products remained dominant, contributing EUR 956.2m (+7% YoY). Within this, prescription pharmaceuticals amounted to EUR 878.3m (84% of total revenue), while non-prescription products reached EUR 77.9m, a 7.4% in total revenue. Animal health products recorded a 5% YoY increase, while health resort and tourist services rose 12% YoY, both from relatively small bases, accounting for 6.1% and 2.5% of total sales, respectively.
While no detailed P&L or balance sheet figures were published, EBITDA amounted to EUR 303.3m (+7% YoY), while EBIT increased by 8% YoY to EUR 257.0m. This suggests that costs were well managed, and profitability slightly improved. The EBITDA margin came in at 28.9%, flat YoY, while the EBIT margin stood at 24.5%, also flat YoY.
Krka key financials (Preliminary H1 2025 vs. H1 2024, EURm)
Source: Krka, InterCapital Research
Net income reached EUR 246.7m, growing 11% YoY and implying a net profit margin of 23.5%, or +1.0 p.p. YoY. Although no breakdown of financial income and expenses was provided, it’s reasonable to assume that most of the increase came from higher financial income. In Q1 alone, Krka recorded EUR 56.8m in net financial result, of which EUR 57.6m came from FX gains. In fact, from the end of 2024 to 31 March 2025, the rouble appreciated by 29% as compared to the euro. However, the FX rate remained at this level for most of Q2. This means that on the H1 basis, this positively contributed to the revaluation of Krka’s rouble-denominated assets in Russia, but only due to that appreciation in Q1.
In terms of investments, Krka allocated EUR 40.9m in H1 2025, of which EUR 29.6m was invested through the parent company Krka d.d.
All in all, the reported H1 2025 results are moving in line with the trend we built into our projections and valuation. While this is a half-year update and not directly comparable to our full-year forecasts, the current growth pace and earnings performance confirm the direction we expected. Operational delivery across key markets remains strong, margins are stable, and the bottom line is consistent with our model. Importantly, our projected dividend yield of 4.9% has now been confirmed in actual terms, which further validates the accuracy and conservativeness of our estimates. We maintain a positive view on the share, and expect Krka to continue delivering solid results in Q3 and for the remainder of 2025.