Krka stock jumps following strong first quarter performance

Published 15/05/2025, 09:12
Krka stock jumps following strong first quarter performance

Investing.com -- Shares of Krka climbed 2.5% after the company reported a solid start to the year, with first-quarter revenue growing 7% to €522.1 million.

The growth was propelled by robust sales across all product and service groups, particularly in Eastern Europe, which is the company’s largest region accounting for 33.9% of sales.

The pharmaceutical firm’s earnings before interest and taxes (EBIT) also increased by 7% year-on-year (YoY) to €122.7 million, keeping pace with revenue growth and maintaining a steady margin of 23.5%, consistent with the first quarter of the previous year. Despite a slight dip, the EBITDA margin remained strong at 27.9%, compared to 28.5% in the first quarter of the previous year.

A significant surge in net income was observed, which grew 54% YoY to €152.5 million, up from €98.7 million in the same period last year. This increase was notably aided by foreign exchange gains, particularly from the Russian ruble, contributing €57.6 million to the bottom line.

Capital expenditures for the quarter amounted to €21.1 million, representing approximately 14.1% of the roughly €150 million forecasted for the full fiscal year 2025. The company has reiterated its financial guidance for FY25, projecting revenues to be "over €2 billion," aligning with analyst expectations of €2.0 billion.

Net profit is anticipated to be around €365 million, compared to consensus of €369.3 million. The planned capital expenditures of approximately €150 million will be directed towards enhancing production capacities and infrastructure.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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