Last week, the largest company on the Ljubljana Stock Exchange, Krka, published its 2025 preliminary results, and it is safe to say they are expected, if you are our client and can read our analysis reports. If not, they can still be assumed by the high quality of the company that can be seen from a distance, but not as precisely as for our clients.
Krka is the company with the largest turnover share on the Ljubljana Stock Exchange in 2025, nothing new, it amounted to astonishing EUR 320.6m, which represents 47% of total equity turnover. Now, what about their 2025 preliminary financials?
Firstly, we have to mention that they marked a notable milestone, the jubilee of exceeding EUR 2bn in revenue, cheers! Revenues amounted to EUR 2.04bn, up 7% on a yearly basis, slightly up from our forecast. In terms of operating profit, EBITDA is standing at EUR 559m, rising 7% YoY and totally in line with our expectations of EUR 560 m. The same trend follows for EBIT who rose 9% YoY to EUR 465m( IC est.2025 at EUR 461.5m). Now we come to the part of the Krka results that are fluctuating on global FX markets because of their global exposure; the net financial result amounted to EUR 28.5m as opposed to negative in FY 2024 (EUR -8.5m). Last but not least, before net profits, tax amounted to EUR 93m, and that is leading us to EUR 401m of net profits, up +13% YoY. Looking at margins, every one of them is bigger compared to the last day of 2024. EBITDA margin at 27.4% ( 2024: 27.2%), EBIT Margin at 22.8% ( 2024: 22.4%), EBT margin at 24.2% ( 2024: 21.9%), and Net profit margin at 19.7% ( 2024: 18.7%).
Krka Key Financials (EURm, 2023A-2026F)
Source: Krka, InterCapital Research
Geography segment-wise, out of 6 regions they operate in, 5 of them saw a growth, just Region Overseas Markets declined by 6% YoY. On the other hand, Region Slovenia +6% YoY, South-East Europe +8% YoY, East Europe +10% YoY, Central Europe +8% YoY, West Europe +3% YoY, Region East Europe being the biggest contributor to the sales with EUR 713m accounting for a total of 35% of total sales, with the Russian Federation generating EUR 422m.
Sales by product and service groups rose in all groups, the biggest segment of it; human health products, which rose 7% to EUR 1.87bn, consisting of prescription pharmaceuticals, which rose 8% YoY (EUR 1.69bn), and Non-prescription products(EUR 173m), which rose 1% YoY. Behind them, animal health products are generating a relatively small percentage of sales with EUR 114m, up 3% YoY, and with EUR 54m, there are health resorts and tourist services, which rose 10% YoY. Of Krka’s ten largest individual markets, prescription pharmaceuticals saw the highest absolute sales growth in the Russian Federation, Poland, Scandinavia, and Germany. Of the other markets, sales increases were most substantial in Belarus, Belgium, and Portugal. Top-ranking classes of prescription pharmaceuticals included cardiovascular agents, central nervous system agents, medicines for the treatment of gastrointestinal disorders, pain, and diabetes.
Krka Share Price Performance (Jan 2025-Jan 2026)
Source: LJSE, InterCapital Research
We just talked about the cash-generating things; on the other hand, something that is consuming cash, so there can be more of it in the future, is research and development and investments.
In 2025, Krka expanded its portfolio with 17 new products, including 13 prescription pharmaceuticals, two non prescription and two animal health products, reinforcing its focus on regulated, higher value segments. The key prescription developments were new antidiabetic agents and further expansion of cardiovascular medicines, Krka’s largest therapeutic class, through new combinations, strengths, and formulations, while China saw new marketing authorisations for gastrointestinal and diabetes treatments. Regulatory execution remained strong, with over 900 registration procedures finalised and more than 32,000 regulatory variations approved, ensuring uninterrupted market supply. On the innovation side, Krka filed eleven new patent applications, followed by eight international and one European patent applications based on 2024 priorities, and was granted 15 patents during the year. Overall, Krka’s technological solutions are protected by around 250 patents, supported by a trademark portfolio exceeding 1,150 registered signs globally.
In 2025, the Krka Group invested EUR 95.5m, with EUR 70.0m allocated to the controlling company, primarily into production capacity, automation, and operational reliability. Completed projects focused on modernizing core Slovenian sites through upgrades of packaging, granulation, and solid dosage production lines, capacity expansion in Ljutomer, and veterinary production in Croatia, alongside infrastructure projects improving supply reliability and ESG standards. Investments in progress are centred on further expansion of solid dosage, packaging, and logistics capacities in Novo mesto and Ljutomer, including new multi-purpose production facilities. Internationally, Krka continued investments in its Hyderabad joint venture focused on oncology and solid dosage production, while Terme Krka investments target healthcare and accommodation upgrades.
For 2026, Krka plans to generate EUR 2,144m in revenue, implying growth of around 5% YoY, with EUR 2,132m expected to come from sales of products and services. Net profit is targeted at EUR 405m, with management projecting an average annual net profit growth of 5.6% over the next five years, indicating confidence in earnings sustainability. Investments are planned to exceed EUR 140m, primarily directed toward further expansion and upgrading of production capacities and infrastructure. The workforce is expected to increase by around 2%, both in Slovenia and internationally, reflecting continued operational growth. These targets are based on the 2026–2030 development strategy, while management notes that material shifts in pricing, input costs, foreign exchange or pharmaceutical demand could lead to deviations from the plan.