The Krka Group Strategy forms the basis for our development
Our development strategy is drawn-up for a five-year period and updated every two years to adapt it to the ever-changing business conditions.
Key strategic objectives up to 2026
- To attain at least 5% average annual sales growth in terms of volume/value and above-average sales growth in relation to market dynamics, and remain or rank among the leading branded generic pharmaceutical companies in individual markets and selected therapeutic classes.
- To strengthen and optimise the vertically integrated business model, proven to be an effective strategic guideline and a comparative advantage, and ensure high standards of product quality, safety, and efficacy.
- To keep focus on long-term profitability of products, from development and production to marketing and sales, including all other functions within the Krka Group, and achieve an average EBITDA margin of at least 25%.
- To ensure that new products and vertically integrated products account for the largest possible proportion in total sales in addition to the existing range of products, also referred to as ‘the golden standard’. To enter new therapeutic classes and specialities as an innovative generic company, and develop complex products, including biosimilars.
- In addition to organic growth, to ensure growth through long-term business partnerships and targeted acquisitions. The primary goal is to increase sales by adding markets and products.
- To allocate 10% of revenue to research and development, and approximately the calculated depreciation and amortisation amount to investments, i.e. on average €110 million annually.
- To pursue a stable dividend policy and when determining net profit share for annual dividend payments consider the Group's requirements for financing investments and acquisitions, and allocate at least 50% of net profit of the majority shareholders for dividends.
- To upgrade the Krka Group culture of sustainability, consider its aspects in corporate governance and business decisions, and maintain economic, social and environmental responsibility in all environments where we operate. To disclose sustainability topics in accordance with the GRI standards in 2022 and achieve an ESG rating in 2023.
Summary of strategic objectives of Krka Group's key sustainability areas
- To exploit digitalisation potentials in all business phases.
- To maintain independence.