Krka (KRK) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 revenue of €566 million, up 8% year-over-year, with strong growth in most markets and product groups except OTC and West Europe.

• Operating profit (EBIT) rose 24% to €152 million, while EBITDA increased 20% to €176 million, with EBITDA margin at 31%, the highest in Q1 history.

• Net profit was €121 million, down 21% year-over-year due to currency volatility and a high base in Q1 2025, but underlying profitability and cash generation remained robust.

• Growth driven by improved product mix, focus on innovative and high value-added products, and operational efficiency.

• Four new products launched, including prescription pharmaceuticals and animal health, with over 240 registration procedures completed.

Financial highlights

• Revenue grew 8% year-over-year to €565.8 million, with strong demand across key markets.

• Gross profit margin improved to 60.4%; EBITDA margin reached 31%; EBIT margin was 26.8%.

• Net profit margin dropped to 21.4% from 29.2% due to FX losses.

• Basic EPS was €3.69, down 26% year-over-year.

• Cash and cash equivalents rose 10% from year-end 2025 to €383.9 million.

Outlook and guidance

• 2026 revenue projected at €2,144 million (+5% vs. 2025); net profit forecast at €405 million.

• CapEx to increase to €140–150 million to support long-term development and production expansion.

• Strategy focuses on organic growth, chronic disease medicines, and maintaining EBITDA margin of at least 25%.

• Dividend payout policy: at least 50% of annual profits to shareholders.

• Management expects continued solid growth, with mid-single digit sales growth guidance reiterated.