Krka 9M18: Another good quarter for Krka, which is on good road to deliver or even surpass its 2018 guidance.
In 9M18 Krka sales revenues were up by 5% to EUR 971.9m. Growth remains pretty much broad based in terms of geographic and production segments. SEE market sales are up by 14%, sales in East Europe and CEE is up by 6% YoY, Overseas markets 9% and Slovenia 3% YoY. Only in West Europe sales level is down 3% YoY, predominantly due to Germany. Please note 3Q18 dynamic is similar, just the directions intensified (up or down). In key market Russia, sales are up by 2% YoY in EUR terms, however 16% in Russian rouble terms and 18% from volume perspective. Recorded EBITDA for 9M18 is at EUR 246.4m, up by 7.6% YoY, while recorded profit s at EUR 120.8m, up by 9.7% YoY. From our estimate’s perspective, sales is ahead of our estimates, but margins on point. So, in the net profit is still also ahead of our estimates. This means we are sticking to our previous estimates, but upside risks are higher for 2018 results, than downside risks. Main investment thesis warranted no change, albeit valsartan issue with competitors could be Krkas gain. Our target price increased mildly to EUR 69 with buy recommendation still intact.
Krka is a public generic pharmaceutical company based in Slovenia. Co. is engaged in the development, production, sale and marketing of human health products (prescription and selfmedication pharmaceuticals and cosmetics), animal health products and health resort and tourist services. Co. focuses on a range of generic prescription pharmaceuticals, which are marketed under Co.'s own brands. Co. offers customers in over 70 countries a broad range of prescription pharmaceuticals, self-medication products and animal health and cosmetic products. Co.'s activities are supplemented by health resort and tourist services of Terme Krka.
ALTA Invest, investicijske storitve, d.d., (ALTA Invest, investment services, Inc.) is a part of ALTA Group, the biggest financial non-banking group in Slovenia. ALTA Invest has around 28% market share on the domestic Ljubljana Stock Exchange and has more than EUR 95m of assets under management.
Our trading advantage is our execution of large trading blocks with low impact on the market. We offer trading on several platforms on numerous markets, with a wide variety of financial instruments. Our advantage is also a research department, which is both sell side and buy side and has the far most extensive and regular coverage of domestic companies. We cover 9 companies on Ljubljana Stock Exchange, which is around 90% of Mcap on LJSE – and here we are practically the only local broker providing this kind of extensive and regular coverage for Slovenian companies.
A part of ALTA Group are ALTA Skladi, a mutual fund asset management company with roughly EUR 260m of asset under management. ALTA Group is also extensively involved in corporate finance projects and raised considerable assets (fixed income and equity) in the last two years for several companies.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.