Rouble weakness weighs on Slovenian Krka's Q1 profit (updated)

Krka dd Novo Mesto

12/05/2016 12:11

* Sales rise by 4 pct 
    * 2016 profit target unchanged 
 
 (Updates with quote, details, share price) 
    By Marja Novak 
    LJUBLJANA, May 12 (Reuters) - Slovenia's Krka  KRKG.LJ  
 KRK.WA  reported first-quarter net profit of 40.2 million euros 
($45.8 million), down 27 percent from a year earlier, hit by 
currency effects from the Russian rouble. 
    Sales in Russia, its largest market, rose by 10 percent in 
volume but fell by 9 percent when expressed in euros due to the 
lower value of the Russian rouble. Krka said group sales rose to 
300.9 million euros from 289.3 million. 
    Krka, which is Slovenia's largest listed company, confirmed 
its forecast for profit to reach 160 million euros this year, 
from 158.2 million in 2015, on sales of 1.2 billion euros. 
    "The sales are up as expected while the profit is slightly 
below our expectations but I believe Krka can still meet its 
profit forecast for this year," said Saso Stanovnik, chief 
economist of investment firm Alta Invest. 
    He said the results should not have a major impact on the 
share price which is likely to move between 60 and 62 euros in 
the coming weeks. 
    "A significant growth of Krka's share price will only be 
possible once the economic situation in Russia stabilises," 
Stanovnik added. 
    By 1105 GMT, after the results were released, shares of Krka 
were unchanged at 60.41 euros, giving the company a valuation of 
around 2 billion euros. 
 ($1 = 0.8779 euros) 
 
 (Reporting by Marja Novak; editing by Jason Neely) 
 ((Marja.Novak@thomsonreuters.com; +386-1-5058805; Reuters 
Messaging: marja.novak.thomsonreuters.com@reuters.net)) 
 
Keywords: KRKA RESULTS/