2024
ANNUAL REPORT
Krka, d. d., Novo mesto
2
Contents
INTRODUCTION ................................................................................................................................................. 3
Statement by the President of the Management Board ................................................................................................. 3
Financial highlights ........................................................................................................................................................ 9
At a glance................................................................................................................................................................... 12
2024 milestones .......................................................................................................................................................... 16
Events after the accounting period .............................................................................................................................. 19
BUSINESS REPORT ........................................................................................................................................ 20
Corporate governance statement ................................................................................................................................ 20
Krka Group development strategy ............................................................................................................................... 40
Sustainable development ............................................................................................................................................ 44
2025 macroeconomic forecast .................................................................................................................................... 51
Risk management ........................................................................................................................................................ 52
Investor and share information .................................................................................................................................... 74
Performance analysis .................................................................................................................................................. 77
Product and service marketing and sales .................................................................................................................... 83
Product and service groups ......................................................................................................................................... 97
Research and development ....................................................................................................................................... 116
Production and supply chain ..................................................................................................................................... 120
Investments ............................................................................................................................................................... 123
Quality ....................................................................................................................................................................... 126
Corporate social responsibility ................................................................................................................................... 132
Sustainability Statement ............................................................................................................................................ 137
FINANCIAL REPORT ..................................................................................................................................... 253
Introduction to the financial statements ..................................................................................................................... 255
Statement of compliance ........................................................................................................................................... 256
Consolidated financial statements of the Krka Group ................................................................................................ 257
Separate financial statement of Krka, d. d., Novo mesto ........................................................................................... 324
SIGNING OF THE 2024 ANNUAL REPORT AND ITS CONSTITUENT PARTS ........................................... 394
In accordance with Commission Delegated Regulation (EU) 2019/815 and Paragraph 1 of Article 134 of the Market in Financial
Instruments Act (ZTFI-1), the official and original version of the report is the one created in the European Single Electronic
Format (ESEF), prepared in the Slovenian language and published via SEOnet, the official electronic dissemination
information system of the Ljubljana Stock Exchange. This version of the annual report is a translation. All possible care has
been taken to ensure that the translation is an accurate representation of the original. However, in all matters of interpretation
of information, views or opinions, the original language version of the report takes precedence over this translation.
2024 Annual Report – Introduction
3
INTRODUCTION
Statement by the President of the Management Board
Dear shareholders, business partners and employees,
Our clear strategic objectives promote stable growth, new investment and development projects, expansion into new
markets, risk management, and share value, increasing our company’s overall value. This, combined with low debt,
effective cash flow management, and prudent decision-making, enabled us to remain resilient and ensure a reliable supply
of our products to patients in 2024 despite the complex situation on global markets.
We recorded the highest sales and EBITDA to date.
We successfully delivered on all our key objectives and the Krka Group’s strategic guidelines. We are especially pleased
that we maintained our planned growth last year. The Krka Group generated €1,909.5 million in revenue, up 6% on 2023.
We recorded €520.1 million EBITDA, the highest since incorporation, outstripping our previous record by 3%. Net profit
totalled €356.2 million, and ROE to 16.1%.
We produced a record volume of tablets and capsules.
Demand for our products has been rising due to their innovation and high quality. In 2024, we manufactured and packed
18.9 billion tablets and capsules, up 12% on 2023. We are especially proud of this accomplishment, as we increased the
production of finished products across several production sites. Despite the varied purchasing market circumstances
followed by raw material shortages, an energy crisis, and global transport issues, we managed to reduce the lead time
and bring our responsiveness and flexibility in the supply chain to even higher levels.
We make healthcare accessible to over one-hundred million people per day.
Our products can significantly improve the health of patients and the quality of their lives. Our innovations are designed
with patient needs and requirements in mind, facilitating therapy, improving patient adherence, and optimising treatment
outcomes. We develop and manufacture advanced pharmaceutical forms, such as prolonged-release tablets, matrix
tablets, and tablets that incorporate OROS technology. We are also among the leading pharmaceutical companies in
capsule-filling pellet manufacturing and development. We are also recognised on our markets for our innovative
combination medicines, which contain two or more active pharmaceutical ingredients. These products improve patient
adherence, making therapy even more effective. Combination medicines account for over 30% of our overall sales. Our
marketing mix comprises 150 combination medicines, more than that of any other generic pharmaceuticals manufacturer.
Some patients find large pills hard to swallow, so we have developed chewable tablets to meet their needs. Our folding
boxes are printed in Braille to aid the blind and visually impaired. Many of our medicines are designed to withstand hot
climate conditions. In developing, emerging and frontier markets, we currently market more than 50 medicines from the
WHO Model List of Essential Medicines to meet one of our objectives – to ensure accessible healthcare. Our priority
sustainability areas are product quality and patient safety. Audits and inspections performed in 2024 attest that our
products are high-quality, safe, and effective. They are used to help over 100 million patients every day.
Through six sales regions, we are present in over seventy countries.
We are proud to have one of the most robust marketing and sales networks of all pharmaceutical companies. We have
subsidiaries and representative offices in Europe and beyond. We have established sales channels with equity-unrelated
partners in certain countries. We strive to market as many products in as many countries as possible. Exports account for
more than 94% of overall Krka Group sales. We market our products through six sales regions: Region East Europe;
Region Central Europe; Region West Europe; Region South-East Europe; Region Slovenia; and Region Overseas
Markets. All our regions experienced growth, except Region West Europe, primarily due to a shortage of goods.
Product sales increased in all countries of Region East Europe, totalling €650.3 million, up 9% on 2023. Absolute growth
was highest in the Russian Federation, Ukraine, and Uzbekistan, while Tajikistan recorded the highest relative growth.
The Russian Federation is our largest individual market, and we were the country’s leading foreign provider of generic
2024 Annual Report – Introduction
4
pharmaceuticals last year. Product sales totalled €373.3 million, up 8% on 2023. More than three-quarters of the products
sold in the Russian Federation are manufactured locally. In Ukraine, another of our key markets, we have faced several
challenges in recent years. In 2024, we increased product sales by 15% to €96 million and ranked second among foreign
providers of generic pharmaceuticals in the country. We are also pleased with our €63.6-million sales in Belarus, Mongolia,
Armenia, and Azerbaijan, up 11% year on year. Our year-on-year product sales in Belarus, Azerbaijan, and Armenia saw
double-digit growth. In addition, Kazakhstan, Moldova, and Kyrgyzstan saw a 10% year-on-year increase and generated
product sales of €46.1 million. In Uzbekistan, Georgia, Tajikistan, and Turkmenistan, our product sales totalled
€71.3 million, up 10%. All four countries presented positive trends.
Region Central Europe generated product sales of €426.5 million, up 7%. In Poland, another of our key markets, we
recorded the highest sales increase in terms of value and again ranked third among foreign providers of generic
pharmaceuticals. Product sales totalled €206.1 million, up 14% on 2023. Sales in Lithuania were also up 14%, and the
two countries recorded the highest market growth in the region. Sales in Lithuania totalled €34 million. As a result, we
retained our position as the leading provider of generic pharmaceuticals in the country. In Hungary, we ranked third among
primarily foreign providers of generic pharmaceuticals. Year-on-year sales totalled €53.3 million, up 2%. In Slovakia, we
recorded product sales of €42.9 million, on par with 2023 sales figure. In Latvia, sales reached €19 million in 2024, a 4%
year-on-year rise. We consolidated our position as the leading provider of generic pharmaceuticals in the country. In
Estonia, sales totalled €12.6 million, up 3% on 2023.
The markets of Region West Europe are collectively regarded as key markets for us. Regional sales amounted to
€351.8 million in 2024, down 5% year on year. Germany, the Scandinavian countries, Portugal, Italy, and the United
Kingdom recorded the highest sales. In Germany, our product sales reached €83.4 million, ranking us eighth among
foreign providers of generic medicines and the leading provider of certain medicines containing fixed-dose combinations
in the country. Our sales in Scandinavia generated €68.5 million, up 9% on 2023. Many of our products were best-sellers
in the market. Our Portuguese product sales totalled €33.8 million, and several of our products were the leading products
in their respective segments. In Italy, we generated product sales of €27.6 million, with a significant increase in sales of
our animal health products. Sales in the United Kingdom increased by 40% year on year, reaching €27.1 million.
Sales generated by Region South-East Europe totalled €269 million, up 8% on 2023. We recorded growth across all
regional markets. Absolute growth, however, was the highest in Romania, where our sales increased by €5.2 million. We
ranked fifth among foreign providers of generic pharmaceuticals in the country, our largest market in that region. Sales in
Croatia, our second market in the region for sales, increased by €3 million on 2023. We ranked second among foreign
providers of generic pharmaceuticals. Our products are well-established in many other regional markets. Serbia generated
€39.1 million in sales, up 4% year on year, ranking it third among regional markets. Sales in Bulgaria totalled €30.2 million
in 2024, a 13% year-on-year increase. Our product sales in North Macedonia totalled €29 million, an 8% year-on-year
increase, and remained the leading foreign provider of generic pharmaceuticals in the country. We recorded sales of
€23.4 million, up 9%, and remained the leading foreign provider of generic pharmaceuticals in Bosnia and Herzegovina.
We bolstered our market presence in Kosovo, Albania, Montenegro, and Greece.
Region Slovenia is also our key market. Product and service sales totalled €121 million in 2024. Product sales were valued
at €71.7 million, up 8%. Health resort and tourist services generated €49.4 million, up 3% year on year, contributing 6% to
sales growth in the domestic market.
The Krka brand has also been enjoying increasing success outside our traditional markets. Our direct market presence,
particularly in China and, since 2024, in India, has further bolstered our marketing position. Our medicines are also used
to treat patients in Saudi Arabia, Australia, Iran, Vietnam, and the Caribbean. Region Overseas Markets generated sales
of €81.1 million, up 8% on 2023. Our product sales in China alone totalled €15.3 million, up 12% on 2023. Our paramount
products were prescription pharmaceuticals marketed under Krka brands.
2024 Annual Report – Introduction
5
Prescription pharmaceuticals are our paramount product group.
We are an essential partner in the treatment of most widespread diseases. At 2024 year-end, our portfolio comprised
over 1,000 products in various dosage forms and strengths. We primarily market them under Krka brands in most
European countries.
Our core business is the production of pharmaceutical products, of which prescription pharmaceuticals accounted for
82.5%, non-prescription products 9.0%, and animal health products 5.9% in 2024. Last year, sales of new products, i.e.
products launched in individual markets in the past five years, accounted for 24% of Krka Group overall sales, or
2 percentage points up on the previous year.
With the high prevalence of cardiovascular diseases, cardiovascular agents remain our top priority. They accounted for
almost 55% of overall sales and remained our central product group. It especially pleases us that Krka has been the
leading producer of several major generic varieties from this product group in Europe and globally. Our major products for
high blood pressure and high cholesterol level control include perindopril-, valsartan-, losartan-, statin- , and rosuvastatin-
based medicines. Central nervous system agents and medicines for the gastrointestinal tract in that order are our next
major product groups. We are the leading provider of generic medicines from these two product groups in Slovenia and
markets in central, eastern, and south-eastern Europe. Many patients rely on our medicines for pain relief, diabetes
management, oncology treatment, and conditions affecting blood and blood-forming organs.
Last year, the Krka Group created €171.3 million in sales of non-prescription products. End-users favour our cough and
cold remedies, analgesics, and vitamins and minerals. Our animal health products for companion and farm animals also
saw significant growth. The Krka Group generated €111.8 million in sales of animal health products last year. Companion
animal products recorded the highest growth, accounting for over 70% of overall animal health product sales. Also, sales
of health resort and tourist services, constituting 2.6% of overall Krka Group sales, saw an increase.
Our experts work on 170 development projects.
Aiming to improve the health of our medicine end-users, research and development drive our progress and sustainable
growth. We initiate development and market authorisation to roll out and manufacture a new product as soon as a patent
expires. We use our know-how and innovations to provide patients with safe, quality, efficacious, and affordable
contemporary medicines.
We dedicate approximately 10% of our revenue annually to research and development. Only last year, we invested almost
€185 million in research and development, two-thirds into new products, and one-third in ensuring top quality throughout
each product’s lifecycle. We build our future on an extensive development portfolio and superior technologies that also
exploit robotics and machine learning (AI), allowing us to optimise our production processes.
More than 800 Krka experts work on 170 development projects to extend our range of medicines in key therapeutic
classes, such as medicines for treating high blood pressure, diabetes, conditions of blood and blood-forming organs, and
cancer. We are dedicated to using energy-efficient technological solutions, enabling competitive pricing for new products.
Starting at the development stage, we work to minimise the impact of our technological procedures, carbon footprint, water
consumption, and organic solvent use, and by doing so, aligning our efforts with circular economy objectives.
With a strong understanding of national and regional regulations, we can define target properties for each product early in
development, ensuring compliance with specific market requirements and tailoring the development process accordingly.
This enables us to provide access to contemporary medicines in the shortest possible time, including for patients in
developing countries and regions. We leverage the latest scientific research and data from our research and development
studies to design our products, using state-of-the-art methods and equipment for their development.
In 2024, we expanded our product range with twenty-two new products, including eighteen new prescription
pharmaceuticals, three additions to our portfolio of consumer health products and food supplements, and one veterinary
medicine. In 2024, we finalised over 1,000 registration procedures for new and already established products and received
approvals for more than 24,000 regulatory variations to ensure uninterrupted supply to various markets.
2024 Annual Report – Introduction
6
In 2024, we filed nine patent applications for new technological solutions we had developed and evaluated as inventions
at the global ranking level. Based on priority applications from 2023, we filed seven international and two European patent
applications. We were granted four patents in various countries.
Our investments align with sustainable development principles.
Constant investments in production, research-and-development and other capacities guarantee our continuous growth.
We apply sustainable development principles in all our investment projects and introduce the best available technologies
to ensure a safe work environment and minimal environmental impact.
The Krka Group allocated €116.9 million to investments last year. We upgraded systems and instruments in most of our
production facilities, further boosting our production capacities and product quality. The investments primarily targeted the
production of finished products, information and documentation management systems, intangible assets, and
infrastructure.
We installed new technological equipment in the Notol Department, one of our biggest solid dosage form production plants
at our central site in Novo mesto, Slovenia. We replaced several packaging lines and are currently investing in upgrading
and expanding granulation capacities and tablet compression output. Additionally, we are upgrading the logistic system
and various supporting systems. These investments guarantee that our Notol Department will operate reliably for the next
twenty years and beyond.
We completed the construction of Paviljon 3, a multi-purpose building in Novo mesto, Slovenia. It houses additional
microbiology laboratories, Library and Information Services, and training facilities. The new facility provides enhanced
conditions for the microbiological quality of pharmaceutical products. It allows our experts quickly access essential
information for product development and facilitates knowledge enhancement in computing, digitisation, and information
systems.
Last year, we successfully completed an energy upgrade project at our wastewater treatment plant in Ločna, Novo mesto,
Slovenia, by exploiting captured excess effluent temperature for heat generation, further safeguarding the environment in
which we operate.
We also made investments in our subsidiaries outside Slovenia. At the production and distribution centre in Jastrebarsko,
Croatia, we increased production capacities for solid forms of products for veterinary use. We also implemented upgrades
at our subsidiaries TAD Pharma and Krka - Polska.
We plan to build a new production plant in India.
We have production plants in Slovenia, the Russian Federation, Poland, Germany, Croatia, and China. We intend to build
a major plant for API and finished product manufacturing in India in the near future.
In India, we established a joint venture named Krka Pharma Pvt. Ltd., in partnership with our long-standing Indian business
partner Laurus Labs Ltd., with Krka holding a 51% stake. Registered capital of up to €50 million will be paid in gradually
as needed. We have agreed our co-founding partner to build a production plant in Hyderabad, and the joint venture has
already begun drafting the project design. Progress has been swift, and we anticipate completing the project in
approximately two years, with a total investment of around €30 million.
The core businesses of both co-founders are complementary, and we anticipate that the project will deliver synergies,
allowing both companies to expand into new markets and consolidate their positions among the leading generic
pharmaceutical manufacturers. Headquartered in India, the joint venture is designed to sell products in India and other
countries outside the European Union, where Krka and Laurus have not yet established a presence.
We received the 2024 S&P Global Corporate Sustainability Assessment from S&P Global.
In 2024, a market intelligence agency S&P Global CSA assessed the sustainability of the Krka Group business operations
again. We scored 56 out of 100, marking a 6 percentage-point increase from our initial score. As of 31 January 2025, our
score ranked us among the top 10% of the companies in the pharmaceutical industry. Compared to 2023, when our score
2024 Annual Report – Introduction
7
was 50, we improved our environmental score by 20 percentage points. We also scored higher as per social and corporate
screening criteria. The independent sustainability rating validates the Krka Group’s sustainable management practices
and ESG governance, which prioritise corporate social responsibility and care for the health and well-being of patients.
We ranked among the top 348 assessed companies, demonstrating our commitment to providing quality, safe, and
effective medicines manufactured in compliance with the highest GMP standards. This ranking also reflects our dedication
to environmental protection and our adherence to the highest standards of business conduct, integrity, and transparency
in Krka Group governance.
Krka employees create a dynamic and development-oriented business environment.
We, the Krka Group employees, create a dynamic and innovative business environment to pursue our mission ‘Living a
healthy life’ through expertise, professional skills, creativity, and teamwork. We foster a culture of lifelong learning, prompt
problem-solving, and efficient action to achieve our ultimate goal.
Modern technology facilitates unprecedented development, but it is our employees – through their expertise and global
mindset – who drive business success and navigate the multifaceted challenges of daily operations and market dynamics.
We operate in diverse cultural settings. Our company’s international footprint provides employees with opportunities to
work in our subsidiaries and representative offices abroad. Daily global collaboration fosters a culture of trust and unity
while facilitating the effective exchange of good practices.
At the end of 2024, the Krka Group had 12,810 employees on its payroll, with 5,247 or 41% working outside Slovenia.
Among all employees, 47% hold at least a university-level qualification, including 202 with a doctoral degree. When
accounting for agency workers, the Krka Group had 12,857 persons on its payroll. By the end of December 2024, Krka
had transitioned all agency workers to direct employment.
We scored the highest overall excellence index of all domestic companies.
Krka retained its leading position among Slovenian companies surveyed for business excellence, as confirmed by the sixth
consecutive Slovenian Business Excellence survey conducted by Ninamedia, a market research and public opinion polling
agency.
The overall excellence score factored in twenty indicators from four main categories: corporate visibility, performance,
reputation, and sustainable operations. Both the general public and the expert community rated us highly in all four
categories, positioning Krka among the most visible, successful, reputable, and sustainability-oriented companies. As per
their scores, we achieved the highest overall excellence index.
In 2024, the Krka share price increased by just over 26%.
I believe our business results demonstrate that investing in our company is a safe choice. Our performance indicators
suggest strong potential for asset growth, a stable dividend policy, and continued increases in shareholder value in the
future.
At the end of 2024, Krka had 47,243 shareholders. We are pleased that a growing number of domestic retail investors are
opting to invest in Krka shares. Traditionally, investors have enjoyed high dividend yields compared to other financial
investments and shares, and the Krka share price continues to rise. In line with the resolution of the latest AGM, we
allocated 73.6% of the consolidated net profit attributable to equity holders of the controlling company generated in 2023
for the dividend payout. Gross dividend per share increased by 13.6%, marking a record dividend payout of €7.50 gross
per share.
We provided shareholders and analysts with transparent and regular information about key business events, Krka’s
performance, strategy, and plans. We participated in 13 investment conferences attended by investors from over
15 countries. We hosted four webcasts to present our quarterly business reports. In recognition of our exemplary
shareholder communications, the Ljubljana Stock Exchange awarded Krka the Best Investor Relations Award for 2024.
2024 Annual Report – Introduction
8
We plan to break sales and production records in 2025.
We embrace change in the business environment with a proactive mindset. Our deep understanding of the environment
we operate in, combined with our flexibility, responsiveness, and resilience, enables us to identify new opportunities and
strengthen our market position. Today, we are among the world’s largest manufacturers of generic pharmaceuticals, and
I believe we have every opportunity to grow even further. We respond to challenges by investing in talent and equipment,
optimising operations at every level, and developing new products. Our goal is to launch these products immediately after
patent protection expires, maximising added value.
The generic pharmaceutical industry will continue to evolve in the future. Healthcare systems are increasingly turning to
high-quality, safe, effective, and, at the same time, more affordable generic medicines. This is why I see great opportunities
for Krka’s growth. Our plans are ambitious, yet we recognise that market conditions will continue to shape our performance.
If the trends from 2024 persist, I am confident that our results in 2025 will be even stronger. We aim to set a new milestone
by surpassing €2 billion in Krka Group sales for the first time since our incorporation. In line with this goal, we have raised
our initial 2025 net profit target from €354 to €365 million. Our investment plans have also grown significantly, reaching
€150 million, marking a substantial year-on-year increase. Additionally, we aim to break production records by
manufacturing, packaging, and selling over 20 billion tablets and capsules.
***
Our success is driven by investments in new products, production capacities, technological advancements, market
expansion, all underpinned by rigorous due diligence. Equally, we invest in our employees, environmental protection,
reduced energy consumption, and the development of the broader community. We primarily leverage our in-house know-
how and resources. I also want to emphasise our agility in bringing new products to market and responding to market
developments. Speed and flexibility, two of our core values, coupled with quality, are our key competitive advantages.
Finding the path to the top is never easy, but at Krka, we have the know-how, experience, and resolve we need to succeed.
Flexibility and innovation pave new paths, while our clear strategy keeps us on course. We are preparing for new
challenges with confidence and responsibility. That is why I firmly believe that we will keep the Krka Group in excellent
shape, drive continuous growth and development, and create greater value – for our employees, customers, shareholders,
and society.
Jože Colarič
President of the Management Board and CEO
2024 Annual Report – Introduction
9
Financial highlights
Alternative performance measures
In this annual report, the Krka Group applies alternative performance measures specified in the European Securities and
Markets Authority (ESMA) guidelines. The selected measures additionally disclose the Krka Group and Krka performance.
Values are measured in € thousand, except where specifically indicated otherwise. Proportions are presented in
percentages or as ratios between two categories.
Alternative performance measure
Calculation method
Criteria for measure selection
Earnings before interest, tax,
depreciation and amortisation
(EBITDA)
Operating profit
(EBIT) + Depreciation/Amortisation
Indicates company performance in its core
operations and is a close approximation of
cash flows from operating activities; The
main source of shareholder returns; Allows
comparison of business performance
regardless of the financing structure and
the company’s business capital intensity
Operating profit (EBIT)
Operating income – Operating expenses
Indicates performance of company core
operations; Allows comparison of business
performance regardless of the financing
structure
Investments
Purchase of property, plant and
equipment + Purchase of intangible assets
Indicates assets held for acquisition,
maintenance and upgrade of tangible fixed
assets for increasing the extent of
operations and further development of the
Krka Group
EBITDA margin
Earnings before interest, tax, depreciation
and amortisation (EBITDA)/Revenue
Shows relative performance of the
company’s core operations and is used to
compare business performance with other
companies, excluding the financing
structure and capital intensity of the
company’s operations
EBIT margin
Operating profit (EBIT)/Revenue
Shows the company’s pricing policy and the
ability to control operating costs;
Indicates relative core operations
performance, excluding the financing
structure
EBT margin
Profit before tax (EBT)/Revenue
Shows relative company performance,
including the financial result
Net profit margin (ROS)
Net profit/Revenue
Shows overall company performance
Return on equity (ROE)
Net profit/((Equity as at 1 Jan + Equity as at
31 Dec)/2)
Shows company efficiency in generating
profits based on shareholder’s equity;
Shows efficiency in terms of increasing
company value for shareholders
Return on assets (ROA)
Net profit/((Assets as at 1 Jan + Assets as
at 31 Dec)/2)
Shows efficiency of company’s total asset
management; The higher the number, the
more efficient company operations
Liabilities/Equity
Current liabilities + Non-current
liabilities/Equity
Indicates debt-to-equity ratio;
Is an important metric for monitoring
company capital adequacy and can be
used to assess the extent of company
reliance on external debt financing
2024 Annual Report – Introduction
10
Alternative performance criterion
Calculation method
Subject matter
R&D expenses/Revenue
Research and development expenses as a
percentage of revenue
Shows Krka Group’s development
orientation;
Is a strategic measure
Gross dividend per share
Dividend per share for the previous period
as per the AGM resolution
Shows shareholders’ participation in the
company’s profit.
Price/Earnings ratio (P/E)
Closing price on the Ljubljana Stock
Exchange as at 31 Dec/Earnings per share
(EPS)
Shows how much investors in the market
are willing to pay per €1 of company’s
earnings; Estimates the value of the
company and its shares in the market
Book value per share
Equity as at 31 Dec/Total number of shares
issued
Shows the share price arising from the book
value of equity
Price/Book value (P/B)
Closing price on the Ljubljana Stock
Exchange as at 31 Dec/Book value
Compares the company’s share price in the
market and its book value at a particular
date; Indicates potential share overvaluing
or undervaluing
Market capitalisation (year-end)
Closing price on the Ljubljana Stock
Exchange as at 31 Dec x Total number of
shares issued
Indicates the Krka Group market value
relative to the company share price on the
Ljubljana Stock Exchange
Current ratio
Current assets/Current liabilities
Shows company current liquidity and/or
ability to settle current liabilities
Quick ratio
(Current assets – Inventories)/Current
liabilities
Shows company current liquidity and/or
ability to settle current liabilities, excluding
inventories
Acid test ratio
(Investments + Cash and cash equivalents)/
Current liabilities
Shows company current liquidity and/or
ability to settle current liabilities, including
most liquid assets only
Receivables turnover ratio
Net credit sales/Average receivables
Measures how many times a year a
company collects its average receivables,
indicating its liquidity;
Quantifies company effectiveness as per
trade receivable management; Includes
information on the average payment term of
all company customers
Dividend payout ratio
Gross dividend per share for the
year/Earnings per share from the previous
year
Shows percentage of net profit paid to
shareholders via dividends and not retained
by a company to reinvest in core operations
or to pay off debt
Dividend yield
Gross dividend per share/Share price as at
31 Dec on the Ljubljana Stock Exchange
Shows dividend yield for dividend
beneficiaries relative to share market price
Gearing ratio
(Borrowings + Trade payables + Current
liabilities from contracts with
customers + Other current liabilities – Cash
and cash equivalents)/Equity
Shows equity financing and indicates the
financial risk level associated with
company; Indicates the company’s capital
adequacy
Net cash flow from operating activities
Calculation shown in the ‘Statement of cash
flows’
Shows cash flow generated by the
company from operating activities before
investment and financial decisions and the
related proceeds and payments
2024 Annual Report – Introduction
11
Krka Group financial highlights
€ thousand
2024
2023
2022
2021
2020
Revenue
1,909,544
1,806,391
1,717,453
1,565,802
1,534,941
– Of that revenue from contracts with customers (products
and services)
1,899,848
1,798,969
1,708,542
1,560,288
1,529,959
Earnings before interest, tax, depreciation and amortisation
(EBITDA)
1
520,085
504,215
488,895
463,625
502,432
Operating profit (EBIT)
2
427,572
399,621
381,211
354,788
390,744
Profit before tax (EBT)
419,078
367,126
433,073
362,417
338,992
Net profit
356,202
313,732
363,662
308,150
288,949
Non-current assets (year-end)
1,022,901
1,059,267
1,125,025
1,075,052
990,998
Current assets (year-end)
1,826,120
1,705,024
1,562,475
1,461,936
1,244,544
Equity (year-end)
2,237,784
2,181,766
2,138,509
1,919,085
1,751,812
Non-current liabilities (year-end)
162,662
149,218
132,130
162,674
172,796
Current liabilities (year-end)
448,575
433,307
416,861
455,229
310,934
R&D expenses
184,855
178,582
162,580
154,559
153,447
Investments
117,049
131,932
105,974
66,386
76,613
RATIOS
2024
2023
2022
2021
2020
EBITDA margin
27.2%
27.9%
28.5%
29.6%
32.7%
EBIT margin
22.4%
22.1%
22.2%
22.7%
25.5%
EBT margin
21.9%
20.3%
25.2%
23.1%
22.1%
Net profit margin (ROS)
18.7%
17.4%
21.2%
19.7%
18.8%
Return on equity (ROE)
16.1%
14.5%
17.9%
16.8%
16.9%
Return on assets (ROA)
12.7%
11.5%
13.9%
12.9%
13.1%
Liabilities/Equity
0.273
0.267
0.257
0.322
0.276
R&D expenses/revenue
9.7%
9.9%
9.5%
9.9%
10.0%
NUMBER OF EMPLOYEES
2024
2023
2022
2021
2020
Year-end
12,810
11,780
11,598
11,511
11,677
Average
11,984
11,667
11,569
11,581
11,631
SHARE INFORMATION
2024
2023
2022
2021
2020
Total number of shares issued
32,793,448
32,793,448
32,793,448
32,793,448
32,793,448
Earnings per share (EPS) in €
5
11.60
10.14
11.69
9.92
9.27
Gross dividend per share in €
7.50
6.60
5.63
5.00
4.25
Closing price on LJSE at the end of the period in €
139.00
110.00
92.00
118.00
91.40
Price/Earnings ratio (P/E)
11.99
10.85
7.87
11.90
9.86
Book value in €
6
68.24
66.53
65.21
58.52
53.42
Price/Book value (P/B)
2.04
1.65
1.41
2.02
1.71
Market capitalisation in € thousand (year-end)
4,558,289
3,607,279
3,016,997
3,869,627
2,997,321
1
The difference between operating income and expenses increased by accumulated depreciation
2
The difference between operating income and expenses
3
Net profit/Average shareholders’ equity in the year
4
Net profit/Average total asset balance in the year
5
Net profit for the year attributable to majority equity holders of the Krka Group/Average number of shares issued in the year, excluding treasury
shares
6
Equity as at 31 Dec/Total number of shares issued
2024 Annual Report – Introduction
12
At a glance
The Krka Group consists of the controlling company, Krka, d. d., Novo mesto , a subsidiary in Slovenia,
Terme Krka, d. o. o., Novo mesto, and 33 subsidiaries outside Slovenia.
The Krka Group develops, produces, markets, and sells human health products (prescription pharmaceuticals and non-
prescription products), animal health products, and health resort and tourist services.
Production takes place in the controlling company in Slovenia and at Krka subsidiaries in the Russian Federation, Poland,
Croatia, and Germany. In addition to production, these subsidiaries, apart from Krka-Rus in the Russian Federation, deal
with marketing and sales. In China, production takes place in leased production facilities. Other subsidiaries outside
Slovenia market and/or sell Krka products, but do not have production capacities.
Terme Krka, d. o. o., Novo mesto provides health resort and tourist services and operates through the following branches:
Terme Dolenjske Toplice; Terme Šmarješke Toplice; Hoteli Otočec; and Talaso Strunjan. Terme Krka is also the majority
owner of Golf Grad Otočec, d. o. o.
In April 2024, Krka, d. o. o., Novo mesto (Slovenia) and Laurus Labs Ltd. (India) established a company in Hyderabad,
India, and the two entities manage the joint venture based on the underlying agreement. Krka and Laurus agreed to
subscribe the registered capital gradually. First payment was made in October 2024. Krka holds a 51% stake in the joint
venture. The Krka Group accounts for the investment in the joint venture under the equity method.
ID card
Krka, d. d., Novo mesto
Registered office
Telephone
++386 7 331 21 11
E-mail
info@krka.biz
Website
www.krka.si
Core business
Manufacture of pharmaceutical preparations
Business classification code
21200
Year established
1954
Registration entry
1/00097/00, District Court of Novo mesto
Tax number
82646716
VAT number
SI82646716
Company ID number
5043611000
Share capital
€54,732,264.71
Total number of shares issued
32,793,448 ordinary registered no-par value shares
2024 Annual Report – Introduction
13
Krka Group business model
1
1
Note to ESRS 2 SBM-1 – Strategy, business model and value chain
2024 Annual Report – Introduction
14
Krka Group organisational chart
Abbreviated company names are used in the remainder of this document.
Russian Federation
KRKA-RUS LLC
Russian Federation
KRKA FARMA LLC
Region East Europe
Poland
KRKA - POLSKA Sp. z o.o.
Hungary
KRKA Magyarország Kft.
Region Central Europe
KRKA, d. d., Novo mesto
TERME KRKA, d. o. o.,
Novo mesto
Region West Europe
Spain
KRKA FARMACÉUTICA, S.L.
Sweden
Krka Sverige AB
Ireland
KRKA PHARMA DUBLIN LIMITED
Portugal
KRKA Farmacêutica, Unipessoal Lda.
Germany
TAD Pharma GmbH
Austria
KRKA Pharma GmbH, Wien
Slovakia
KRKA Slovensko, s.r.o.
Czechia
KRKA ČR, s. r. o.
Croatia
KRKA-FARMA d.o.o.
Serbia
KRKA-FARMA DOO BEOGRAD
North Macedonia
KRKA-FARMA DOOEL Skopje
Region South-East Europe
Romania
KRKA ROMANIA S.R.L.
Bosnia and Herzegovina
KRKA FARMA d.o.o., Sarajevo
Lithuania
UAB KRKA Lietuva
Ukraine
KRKA UKRAINE LLC
Latvia
SIA KRKA Latvija
Italy
KRKA FARMACEUTICI MILANO S.R.L.
France
KRKA France Eurl à capital variable
Belgium
KRKA Belgium, SA
Kazakhstan
LLC ‘KRKA Kazakhstan’
The chart includes companies operating as at 31 December 2024.
Other subsidiaries outside Slovenia
Production and distribution companies
Health resort and tourist services
China
Ningbo Krka Menovo Pharmaceutical Co. Ltd.
Bulgaria
KRKA Bulgaria EOOD
Region Overseas Markets
United Kingdom
KRKA UK LTD
Finland
KRKA Finland Oy
US
KRKA USA LLC
Joint venture for development, production, and distribution
Greece
KRKA HELLAS E.P.E.
Germany
123 Acurae Pharma GmbH
UAE
Krka GCC L.L.C
Reigon Slovenia
Netherlands
KRKA Netherlands B.V.
India
KRKA Pharma Private Limited
Joint venture
2024 Annual Report – Introduction
15
Krka in global markets
2024 Annual Report – Introduction
16
2024 milestones
Business performance
• The Krka Group generated revenue of €1,909.5 million, up 6% on 2023, and net profit of €356.2 million.
• We entered into an agreement with our Indian partner Laurus Labs Ltd. to incorporate a joint venture named Krka
Pharma Pvt. Ltd., headquartered in Hyderabad, India, enabling us to start production for our new markets, including
India. We hold a 51% stake in the joint venture and Laurus a 49% stake.
• We celebrated the 70th anniversary of our business operations with a gala ceremony on 23 April, the incorporation
date of the Krka Pharmaceutical Laboratory.
• We are one of the few companies in the world whose dividend payout has been rising constantly for 25
consecutive years. We paid out dividends of €7.50 gross per share in 2024, up almost 14% year on year.
• We participated in thirteen investment conferences and organised four webcasts to present our business operations
to investors and analysts.
• We regularly informed the financial and general public about our business achievements in compliance with
applicable regulations and stock exchange reporting rules.
• Last year, the Krka Group reached new sales records. We produced and sold nearly 19 billion tablets and capsules,
including over 2 billion perindopril-based tablets, valued at €200 million. Our rosuvastatin products generated
record sales of €100 million.
• In October, we ceremoniously opened Paviljon 3, a new building at our central site in Ločna, Novo mesto, Slovenia,
with 9,600 square metres of floor space, housing additional microbiology laboratories, Library and Information
Services, training facilities, and Supply Chain office rooms. This €20-million investment marked the completion of
yet another milestone in Krka’s development.
• We passed the 29th audit of the quality management system conducted by the Slovenian Institute of Quality and
Metrology (SIQ) without any observations. All five of our certifications – ISO 9001, ISO 14001, HACCP, ISO45001,
and ISO/IEC 27001 – were renewed.
• On 31 January 2025, we scored 56 out of 100 in the 2024 S&P Global Corporate Sustainability Assessment (CSA)
performed by S&P Global, the international credit and ESG rating agency. As at this date, our S&P Global CSA
Score ranked among the top 10% in the pharmaceutical industry.
Visibility
• We again scored highly in the 2024 Slovenian Business Excellence survey, conducted by an independent
Slovenian agency, maintaining our position among the top Slovenian companies. President of the Management
Board and CEO Jože Colarič was the most recognisable and acclaimed of all Slovenian directors. The overall
excellence score factored in corporate recognition, performance, reputation, and sustainability.
• We received an award as the best large company in the 2023 Best Company Campaign for the Dolenjska and
Posavska regions, organised by the local weekly Dolenjski list in collaboration with the Slovenian credit rating
company Prva bonitetna agencija – EBONITETE.SI. Winners from several categories were chosen based on key
performance indicator analyses.
• At the investor conference, we received the Best Investor Relations Award of all companies listed on the Ljubljana
and Zagreb Stock Exchanges for the fifth time.
2024 Annual Report – Introduction
17
• In April, we were one of the award recipients given to reputable employers in Slovenia as a token of recognition by
the Slovenian employment portal MojeDelo.com in collaboration with Universum Global. We have received the
award for being the most reputable employer in Slovenia seven times since the poll began.
• Planet GV and the Slovenian Institute for Knowledge Management and Talent Development Sofos presented us
with the TOP Education Management certificate at the Edutainment convention, acknowledging our above-average
investment in employee education and development for the third consecutive year.
• Our innovations received five gold, one silver, and one bronze award at the innovation ceremony of the Chamber
of Commerce of Dolenjska and Bela krajina.
• At the Slovenian Chamber of Commerce and Industry Innovation Day, our innovations received one gold and one
silver award: the gold award for tapentadol prolonged-release tablets for relieving severe pain, and the silver award
for our dabigatran-based medicine used to treat and prevent thromboembolic events.
• On the occasion of the 70th anniversary of Krka, the Chamber of Commerce of Dolenjska and Bela krajina
honoured us with a special certificate of recognition for our contribution to the economic development of the industry
and the whole region.
• The international Septabene brand advertising campaign ‘Sore throat, your show is over!’ received a silver award
in the brand experience category at the Slovenian Advertising Festival (SOF).
Sustainability
• We effectively manage material sustainability impacts, risks and opportunities to ensure long-term business
performance and create value for stakeholders. Last year, we amended and updated certain policies and processes
to ensure regulatory compliance and effective management of strategic sustainability (ESG) topics and remain
competitive in the areas where sustainable management is becoming a new standard.
• We made donations to healthcare institutions also to increase the affordability of treatment. On the occasion of our
70th anniversary, we underscored our commitment to the well-being of the youngest members of our community
by making donations to the Division of Paediatrics at the University Medical Centre Maribor, the Division of
Paediatrics at the University Medical Centre Ljubljana, as well as paediatrics departments in ten other general
Slovenian hospitals.
• On our anniversary, we supported the symposium Generations of Knowledge for the Health of All held by the
Slovenian Medical Association. The event brought together 230 specialists from 30 countries, experts in cardiology,
psychiatry, diabetes, pain relief, pharmacy and animal health. The topics focused on comprehensive, high-quality
therapies for the most prevalent diseases of our time. Through organising and supporting educational courses, we
contribute to one of the United Nations’ 2030 Agenda goals – reducing deaths from noncommunicable diseases by
one-third by 2030.
• We integrate sustainability and ecological standards into technological procedures for chemical synthesis in
API development and research. One of our latest approaches promotes the adoption of artificial intelligence and
machine learning.
• We extended our fleet with our first heavy-duty electric truck, which we use to transport our products throughout
Slovenia. We set a new standard and delivered on our long-term commitment to developing sustainable mobility.
• At the 18th traditional meeting with Krka’s sponsorship recipients, the 2023 Talent-of-the-Year Awards were
announced. Three outstanding young individuals received certificates of recognition for their achievements in sports
and culture.
2024 Annual Report – Introduction
18
• As part of our social responsibility initiative, Krka’s Week of Charity and Volunteering, employees from 21 countries
participated for the 11th consecutive year, promoting volunteerism, mutual assistance, and intergenerational
connection.
• For the ninth consecutive year, we participated in the European Mobility Week with our Krka Car-Free Day
campaign, reaffirming our commitment to our care for the planet. Employees in 13 countries where we operate
subsidiaries commuted to work using sustainable means of transport.
• To commemorate our 70th anniversary, we added a new inscription to the base of Krka Girl with a Growing Book
statue, located in front of our state-of-the-art pharmaceutical production facilities in Novo mesto, Slovenia.
Additionally, we published a comprehensive monograph entitled 70 Years: Living a Healthy Life.
• We upheld our unique and long-standing tradition of Krka Prizes by awarding secondary school, undergraduate,
and graduate-level prizes for the 54th consecutive time. Recipients also had the opportunity to present their papers
at a scientific symposium.
• At the 2024 SCS Annual Meeting, the Slovenian Chemical Society introduced awards and certificates of
recognition, honouring outstanding achievements in science, education, and the economy. Krka’s scientist Dr Silvo
Zupančič was honoured with an award for his long-standing contributions to the development of the chemical
industry in Slovenia and his role as a mentor and leader in the industry.
• The Municipality of Novo mesto honoured Prof. Dr Franc Vrečer, longtime Assistant Director of Pharmaceutical
R&D, for his significant and enduring contributions to scientific research and innovation.
• On International Volunteer Day, we presented the Volunteer of the Year Award and recognised Krka employees
for their dedication as blood donors.
• Krka’s Culture and Arts Society also continued fostering cultural and artistic activities in 2024.
Employees
• The organisational climate survey of the Krka Group conducted at the end of 2023 revealed that 69.8% of
employees take pride in working at Krka, while an impressive 77.3% demonstrate high engagement. Job content
and close collaboration within a creative and dynamic work environment were the highest-rated aspects.
• Our top sustainable priorities are product quality and patient safety. Krka experts explored relevant GMP and GDP
topics at a three-day international QA conference.
• At the 21st International Regulatory and Pharmacovigilance Conference, employees from over 30 countries gained
insights into pharmacovigilance and marketing regulatory matters. Outstanding regulatory affairs employees were
recognised with awards, certificates of recognition, and commendations.
• The 26th Marketing and Sales Conference brought together 186 managers from 39 countries, presenting the latest
trends in marketing and sales.
• Top-performing marketing and sales employees from 29 countries received Marketing Awards.
• More than 250 participants from 35 countries gathered at the Brand Managers’ Meeting, gaining insights into the
future of multichannel marketing.
• Last year, we held 18 worker assemblies, where senior managers gave employees key updates on business
operations.
2024 Annual Report – Introduction
19
• The traditional Krka Awards Day highlighted the shared mission and values that unite Krka employees worldwide,
regardless of linguistic and cultural differences. Plaques were awarded to long-serving staff members, top
employees, top managers, and colleagues who excelled in innovation.
• We hosted the 20th Krka International Leadership School, a prestigious training course for Krka Group managers.
To date, 437 employees from 37 countries have completed the course, including 24 employees from 15 countries
last year. Additionally, the 19th cohort of Krka employees graduated from the Krka Operational Leadership School.
• We presented special recognition certificates to our top-performing employees from our subsidiaries abroad who
achieved Elite Club membership for three consecutive times.
• We recognised and thanked our colleagues and organisational units for their innovative efforts in submitting the
best practical proposals and improvements, contributing to the company’s progress. Most of these improvements
have been successfully implemented, with many adopted across the Krka Group.
• Since 2000, we have been the only company in Slovenia to offer six national vocational qualification programmes
for the pharmaceutical industry. In 2024, 198 Krka employees completed various programmes, gaining the skills
needed to manage highly automated work processes and operate computer-controlled technological systems more
easily.
• Last year, we continued our tradition of hosting an annual event for our recently retired colleagues, where the
company management thanked them for their loyalty and contributions to Krka’s success.
Events after the accounting period
The two events after the accounting period had no impact on the 2024 financial statements.
Joint venture
Krka and the Indian company Laurus Labs Ltd. (hereinafter Laurus) established a joint venture, Krka Pharma Pvt. Ltd.,
headquartered in Hyderabad, India, in April 2024. Krka holds a 51% and Laurus a 49% stake in the joint venture. At the
beginning of October 2024, Krka paid in €2.5 million of initial capital, and on 10 March 2025 the second instalment of
registered capital totalling €9,233.550 or 867,000 thousand Indian rupees.
Repurchase of treasury shares
The Company repurchased 87,928 treasury shares between 1 January 2025 and 14 March 2025 and thus held 2,195,265
treasury shares at the end of this period, accounting for 6.69% of total shares.
2024 Annual Report – Business report
20
BUSINESS REPORT
Corporate governance statement
2
Krka employs a two-tier corporate governance system. The Management Board runs the Company and is overseen by
the Supervisory Board. Corporate governance is based on the legislation of the Republic of Slovenia, Slovenian and
international good practice, and Krka’s internal rules.
Governing bodies are:
• Annual General Meeting (AGM);
• Supervisory Board; and
• Management Board.
Annual General Meeting
Under the Slovenian Companies Act (ZGD-1), the Company’s highest body is the Annual General Meeting (AGM). The
AGM is convened when it serves the Company’s interests or when required under the Companies Act (ZGD-1) or Krka’s
Articles of Association (Article 6.20).
It is where shareholders directly participate in the Company’s governance, and all fundamental and statutory decisions are
taken. Each share, except for treasury shares, represents one vote at the AGM. Krka has one share class only: ordinary
no-par value shares.
The AGM primarily decides on:
• The appropriation of distributable profit;
• The appointment or dismissal of Supervisory Board members;
• The granting of discharge of liability to members of management or supervisory bodies;
• Amendments to the Articles of Association;
• Measures to increase or decrease equity;
• Changes in the Company’s status and dissolution;
• The appointment of an auditor;
• The remuneration policy for management and supervisory bodies in an advisory vote;
• Adoption of the annual report if not approved by the Supervisory Board;
• Other matters as stipulated by the Articles of Association or law.
Krka’s AGM makes decisions by a majority of votes cast, unless otherwise specified by law or the Articles of Association.
In accordance with Article 6.24 of the Articles of Association, a three-quarters majority is required for decisions on:
• Amendments to the Articles of Association;
• Reduction of share capital;
• Increase and conditional increase of share capital;
• Changes in the Company’s status and dissolution;
• Exclusion of shareholder’s pre-emptive rights in the issuance of new shares;
• Early dismissal of Supervisory Board members;
• Other matters as stipulated by law or the Articles of Association.
The Management Board calls the regular AGM once a year, at least 30 days before the due date. Upon request, all the
materials for each AGM can be viewed at the Company’s registered office starting from the notice date.
All shareholders entered in the shareholder register as at the record date, which is published in the notice, have the right
to attend and vote at the AGM. The same applies to their representatives and proxies.
2
The text referred to by the ‘Sustainability statement’ is highlighted in green in the ‘Corporate governance statement’.
