Krka 9M17: Continuation of the positive dynamic from the first half, 5 year growth guided for at least 5% volume/value growth per year.
In 9M17 sales growth of 8.9% YoY was recorded with 9.9% YoY growth in 3Q17. Sales accelerated significantly in West Europe, which now has 3.2% YoY growth for 9M17. In East Europe ex Russia sales growth of 12.7% YoY was recorded while in Russia 20.6% YoY. However here a decrease of sales was recorded for 3Q17. EBITDA margin improved considerably, adding to the profit growth, while net financial result (FX) and higher effective tax rate had a negative effect versus 9M16. Net income increased by 37.1% YoY in 9M17 and is already above 2016 levels while Krka now guided for 2017 profit of approximately EUR 140m. This represents 30% growth versus 2016 levels but is 12% below 2015 profit level. 2018 profit is guided at EUR 153m. The results and guidance is close to our expectation so we have decided for now not to change our estimates and consequently valuation target.
Krka also set its 2018-2022 strategic objectives, but this brought little new news and quantified data. It’s guiding for at least 5% value/volume growth and dividend policy of at least 50% of consolidated profit. However, Krka is going more into China and biosimilars, effects of both should be seen only in 2021 and after.
Petrol Ljubljana. Petrol dd Ljubljana is a Slovenia-based company engaged in the provision of oil and other energy products. The Company operates through two segments, Oil and Merchandise sales and Energy activities. The Oil and Merchandise sales segment consists of sale of oil and petroleum products, and sale of supplementary merchandise comprised of automotive products, foodstuffs, accessories, tobacco, lottery products, coupons and cards. The Energy activities segment consists of sale and distribution of gas; generation, sale and distribution of electricity and heat; energy consumption projects and comprehensive energy supply projects, and environment activities. As of December 31, 2011, it operated a number of subsidiaries based in Slovenia, Austria, Bosnia and Herzegovina, Croatia, Serbia, Montenegro and Macedonia, among others. On February 11, 2013, the Company acquired a 51% stake in Instalacija doo. On May 10, 2013, the Company acquired a 100% stake in Nafta Geoterm doo.
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.