EBITDA Margin Of 33% Not Sustainable, Krka Underlines

Demand Driven By Pandemic Has Boosted Krka’s Bottom Line

Krka’s bottom line continues to be stronger than usual, driven by a hike in sales and leaner cost base. Looking to 2021, however, management brought investors back down to earth.

Margin
"Margins will gradually return towards the top end of target range," Krka has made clear. • Source: Shutterstock

Krka’s profitability in the first nine months of this year, driven in part by one-off soaring demand and stockpiling in the first quarter considering the coronavirus pandemic, will not hold into the future, management has underlined.

With group earnings before interest, tax, depreciation and amortization improving by 40% to €384.6m ($457.6m), and EBIT almost three-fifths higher...

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