Falling rouble dents profits of Slovenian drug group Krka (updated)

Krka dd Novo Mesto

03/03/2016 12:39

* Russia sales up 6.5 pct in roubles, down a fifth in euros 
    * Krka confirms 2016 net profit forecast of 160 mln euros 
 
 (Adds quotes, details, background) 
    By Marja Novak 
    LJUBLJANA, March 3 (Reuters) - Generic drugs maker Krka 
 KRKG.LJ , Slovenia's biggest listed company, blamed falling 
currencies in Russia and Ukraine for a profit drop of nearly 5 
percent in 2015. 
    Krka posted group net profit of 158.2 million euros, down 
from 166.2 million a year before, while sales fell to 1.16 
billion euros from 1.19 billion. Russia and Ukraine are two of 
the group's key markets. 
    "Sales in the Russian Federation reached 224.7 million euros 
and were down by one-fifth compared to the previous year. But 
they rose by 6.5 percent when expressed in Russian roubles," 
Krka said in a statement. 
    On the other hand, sales in Western Europe, which represent 
26.3 percent of Krka's turnover, rose strongly, particularly in 
Germany, where they were up by 27 percent. 
    The company confirmed its November forecast that 2016 group 
net profit will reach 160 million euros on sales of 1.2 billion. 
    "The profit and sales figures are in line with expectations 
so they will not have a significant impact on Krka's share 
price," Saso Stanovnik, chief economist of investment firm Alta 
Invest, told Reuters. 
    "But on the other hand the situation in Russia is likely to 
remain difficult this year, which is why Krka's share is not 
likely to increase significantly in the coming months and will 
thus remain around 60 euros," he added. 
    Shares in Krka closed down 0.8 percent at 61 euros on 
Thursday, while the blue-chip SBI index  .SBITOP  gained 0.36 
percent.    
     
     
 
 (Reporting By Marja Novak; Editing by Mark Trevelyan) 
 ((Marja.Novak@thomsonreuters.com; +386-1-5058805; Reuters 
Messaging: marja.novak.thomsonreuters.com@reuters.net)) 
 
Keywords: KRKA RESULTS/