Krka — Interim / Quarterly Report 2025

May 16, 2025

Q1 2025 Unaudited Interim Report of the Krka Group and Krka, d. d.

Novo mesto, May 2025

Introduction	3
Q1 2025 business performance highlights	3
Financial highlights	4
Krka d. d. ID card	5
Krka Group at a glance	5
2025 Krka Group business plan	5
Business report	6
Financial risks	6
Investor and share information	6
Krka Group performance analysis	8
Marketing and sales	11
Research and development	16
Investments	17
Employees	18
Condensed consolidated financial statements of the Krka Group, with notes	19
Consolidated statement of financial position of the Krka Group	19
Consolidated income statement of the Krka Group	20
	20
Consolidated statement of other comprehensive income of the Krka Group
Consolidated statement of changes in equity of the Krka Group	21
Consolidated statement of cash flows of the Krka Group	23
Segment reporting of the Krka Group	24
Notes to consolidated financial statements of the Krka Group	25
Condensed financial statements of Krka, d. d., Novo mesto, with notes	31
Statement of financial position of Krka, d. d., Novo mesto	31
Income statement of Krka, d. d., Novo mesto	32
Statement of other comprehensive income of Krka, d. d., Novo mesto	32
Statement of changes in equity of Krka, d. d., Novo mesto	33
Statement of cash flows of Krka, d. d., Novo mesto	35

INTRODUCTION

Condensed consolidated financial statements of the Krka Group and condensed financial statements of Krka, d. d., Novo mesto (hereinafter also Krka, the Company, or the controlling company) for the first quarters of 2025 and 2024 are unaudited, while financial statements for the full financial year 2024 are audited. Krka has no authorised capital and made no conditional share capital increase.

Krka promptly announces all significant data changes in its listing prospectus in the electronic information dissemination systems SEOnet of the Ljubljana Stock Exchange and ESPI of the Polish Financial Supervision Authority. Reports on business operations of the Krka Group and Krka are available at www.krka.biz.

At its regular meeting of 14 May 2025, the Supervisory Board of Krka discussed the unaudited report of the Krka Group and Krka for the first quarter of 2025.

Q1 2025 business performance highlights

• The Krka Group recorded €521.5 million in sales of products and services, of which product sales accounted for nearly 98%.
• Product and service sales of the Krka Group increased by 8% year on year.
• We generated 94% of product and service sales outside Slovenia. Export accounted for 96% of product sales.
• Region East Europe recorded the highest sales, accounting for 33.9% of total Krka Group sales, and was followed by Region Central Europe and Region West Europe.
• The Krka Group recorded €122.7 million in operating profit (EBIT), up 7% year on year. The EBIT margin was 23.5%. Earnings before interest, tax, depreciation, and amortisation (EBITDA) amounted to €145.9 million. The EBITDA margin was 27.9%.
• The Krka Group generated a positive net financial result totalling €56.8 million, of which net foreign exchange gains amounted to €57.6 million.
• The Krka Group profit before tax totalled €179.5 million, up 51% year on year.
• The Krka Group recorded net profit of €152.5 million, up 54% year on year. Net profit margin was 29.2%.
• As at 31 March 2025, Krka share price at the Ljubljana Stock Exchange was €172.00, up 24% on yearend 2024. Market capitalisation amounted to €5.6 billion. From January to the end of March 2025, Krka repurchased treasury shares in total of €16.9 million.
• We extended our product portfolio with four new prescription pharmaceuticals.
• The Krka Group allocated €21.1 million to investments, of which €15.3 million to the controlling company.
• At the end of March 2025, the Krka Group had 12,925 regular employees on payroll. Total headcount, including agency workers, was 12,967.

Financial highlights

		Krka Group		Krka
€ thousand	Jan–Mar 2025	Jan–Mar 2024	Index	Jan–Mar 2025	Jan–Mar 2024	Index
Revenue	522,114	486,145	107	511,063	458,696	111
– Of which revenue from contracts with	521,456	484,104	108	435,903	399,670	109
customers (products and services)
Gross profit	304,417	279,941	109	295,258	260,024	114
Earnings before interest, tax, depreciation	145,862	138,468	105	148,692	129,139	115
and amortisation (EBITDA)
Operating profit (EBIT)1	122,690	114,188	107	131,328	111,561	118
Profit before tax (EBT)	179,514	118,644	151	192,709	115,886	166
Net profit	152,484	98,772	154	162,467	97,825	166
R&D expenses	49,519	46,864	106	49,083	46,023	107
Investments	21,066	26,996	78	15,262	19,958	76
€ thousand	31 Mar 2025	31 Dec 2024	Index	31 Mar 2025	31 Dec 2024	Index
Non-current assets	1,056,240	1,022,901	103	1,051,849	1,044,180	101
Current assets	2,039,544	1,826,120	112	1,776,102	1,577,456	113
– Inventories	678,805	638,608	106	551,292	548,188	101
– Trade receivables	607,953	552,710	110	621,425	518,425	120
– Cash and cash equivalents	467,599	344,895	136	336,245	238,183	141
Equity	2,426,144	2,237,784	108	2,332,269	2,186,351	107
Non-current liabilities	164,596	162,662	101	131,920	130,433	101
Current liabilities	505,044	448,575	113	363,762	304,852	119
– Trade payables	163,665	148,285	110	199,920	171,183	117
RATIOS	Jan–Mar 2025		Jan–Mar 2024	Jan–Mar 2025		Jan–Mar 2024
Gross profit margin		58.3%	57.6%		57.8%	56.7%
EBITDA margin		27.9%	28.5%		29.1%	28.2%
EBIT margin		23.5%	23.5%		25.7%	24.3%
EBT margin		34.4%	24.4%		37.7%	25.3%
Net profit margin (ROS)		29.2%	20.3%		31.8%	21.3%
Return on equity (ROE)2		26.2%	17.7%		28.8%	18.0%
Return on assets (ROA)3		20.5%	14.1%		23.9%	14.8%
Liabilities/Equity		0.276	0.256		0.213	0.196
R&D expenses/Revenue		9.5%	9.6%		9.6%	10.0%
NUMBER OF EMPLOYEES	31 Mar 2025	31 Dec 2024	Index	31 Mar 2025	31 Dec 2024	Index
Balance at	12,925	12,810	101	7,573	7,523	101
SHARE INFORMATION			Jan–Mar 2025		Jan–Mar 2024	Index
Total number of shares issued		32,793,448		32,793,448		100
Earnings per share (EPS) in €4			19.87		12.82	155
Closing price at end of period in €5			172.00		128.50	134
Price/Earnings ratio (P/E)			8.66		10.02	86
Book value in €6			73.98		69.38	107
Price/Book value (P/B)			2.32		1.85	126
Market capitalisation in € thousand (end of period)			5,640,473		4,213,958	134

¹ The difference between operating income and expenses

² Net profit, annualised/Average shareholders' equity in the period

³ Net profit, annualised/Average total asset balance in the period

⁴ Net profit attributable to majority equity holders of the Krka Group, annualised/Average number of shares issued in the period, excluding treasury shares

⁵ Share price on the Ljubljana Stock Exchange

⁶ Equity at the end of the period/Total number of shares issued

Krka d. d. ID card

Registered office Šmarješka cesta 6, 8501 Novo mesto, Slovenia Telephone +386 (0) 7 331 21 11 E-mail info@krka.biz Website www.krka.biz Core business Manufacture of pharmaceutical preparations Business classification code 21,200 Year established 1954 Registration entry 1/00097/00, District Court of Novo mesto, Slovenia Tax number 82646716 VAT number SI82646716 Company ID number 5043611000 Share capital €54,732,264.71 Total number of shares issued 32,793,448 ordinary registered no-par value shares, KRKG stock symbol. Krka

shares have been listed on the Ljubljana Stock Exchange since 1997 under the KRKG stock symbol, and have been dual-listed on the Warsaw Stock Exchange since April 2012 under the KRK stock symbol.

Krka Group at a glance

The Krka Group develops, produces, markets, and sells human health products (prescription pharmaceuticals and non-prescription products), animal health products, and health resort and tourist services.

The Krka Group consists of the controlling company, Krka, d. d., Novo mesto, a subsidiary in Slovenia, Terme Krka, d. o. o., Novo mesto, and 33 subsidiaries outside Slovenia. The controlling company is the sole owner in all subsidiaries except two. Krka holds a 60%, and the Chinese partner, Ningbo Menovo Pharmaceutical Co. Ltd., a 40% stake in our joint venture Ningbo Krka Menovo Pharmaceutical Co. Ltd. in China.

In April 2024, Krka, d. o. o., Novo mesto (Slovenia) and Laurus Labs Ltd. (India) established a joint venture, Krka Pharma Private Limited, in Hyderabad, India. Krka holds a 51% stake in the company, while Laurus Labs Ltd. holds a 49% stake. At the beginning of October 2024, we paid in €2.5 million of initial capital into the joint venture, and on 10 March 2025, we paid the second instalment of registered capital totalling € 9.2 million.

Production takes place in the controlling company in Slovenia and at Krka subsidiaries in the Russian Federation, Poland, Croatia, and Germany. These subsidiaries, apart from Krka-Rus in the Russian Federation, deal with marketing and sales in addition to production. In China, production takes place in long-term leased production facilities. Other subsidiaries outside Slovenia market and/or sell Krka products, but do not have production capacities. The subsidiary Terme Krka provides health resort and tourist services and owns Golf Grad Otočec.

2025 Krka Group business plan

• Product and service sales are projected at over €2 billion. Average annual sales growth over the five-year period is planned at 5.5%.
• We expect to generate 94% of sales in markets outside Slovenia.
• Prescription pharmaceuticals are expected to remain the most important product group and account for more than 80% of overall sales.
• Full-year net profit is estimated at €365 million.
• We plan to allocate €150 million to investments, primarily in expanding and upgrading production facilities and infrastructure, of which €120 million into our capacities and €30 million.
• The total number of employees in Slovenia and abroad is projected to increase by 1%.

The 2025 business objectives derive from the 2024–2028 Krka Group Development Strategy and are based on estimates, assessments, projections, and other available data. The Management Board believes the projections are reasonable. In the event of major changes in the business environment, e.g. price erosion, rising prices of raw materials, changes in exchange rates for certain currencies important for us, and a decrease in demand for pharmaceutical products, the actual operating results can deviate from the plan.

BUSINESS REPORT

Financial risks

Foreign exchange risk

Our key currency risk management policy remains to mitigate currency risk exposure by natural hedging. We also use financial instruments to a limited extent.

The Russian rouble continues to represent the largest Krka Group currency risk. International markets offer no financial instruments to mitigate this risk, therefore we have adopted natural hedging strategies.

The value of the Russian rouble expressed in euros increased by 28.8% from the beginning to the end of the year, while the average value of the rouble expressed in euros increased by 0.3% year on year.

We continued to hedge the risk exposure to the US dollar with financial instruments in the first quarter of 2025. Unlike other currencies, exposure to the US dollar arises from a surplus of liabilities over assets from regular business operations; in other words, the currency position is short. Exposure to the US dollar arises primarily from purchasing raw and other materials.

The value of the US dollar expressed in euros decreased by 3.9% over the first quarter. However, the average value of the dollar increased by 3.2% year on year.

Other currencies of importance for our operations remained stable in the first quarter of 2025.

Currency risk result, composed of net exchange differences and derivative income and expenses, amounted to €54.3 million. Krka Group net financial result of €56.8 million comprised currency risk result, interest income and expenses, and other financial income and expenses.

Credit risk

The key credit risk of the Krka Group arises from trade receivables. All Krka Group clients with credit limits exceeding €20,000 go through the centralised credit control process. We had over 670 such clients at the end of the first quarter of 2025, accounting for more than 95% of total trade receivables. Small client credit control is decentralised and exercised in the sales network under the constant supervision of the controlling company.

Our credit risk management policy remained unchanged in the first three months of 2025. At the end of the first quarter, more than 90% of Krka Group trade receivables were secured with a credit insurance company.

At the end of the first quarter, the total value of trade receivables expressed in euros was 10% higher than at the beginning of the year. The maturity structure of receivables remained stable. Overdue receivables to total trade receivables remained within acceptable limits at the end of the first quarter.

Investor and share information

The Krka share price on the Ljubljana Stock Exchange increased by 23.7% during the first three months of 2025, trading at €172.00 on 31 March 2025. Holdings of Slovenian legal entities and institutional investors and treasury shares increased in the period, while stakes of foreign investors decreased. We recorded no change in other holdings. Krka had 47,460 shareholders at the end of March 2025.

Shareholder structure (%)

	31 Mar 2025	31 Dec 2024
Slovenian retail investors	41.5	41.5
Slovenski državni holding (SDH, Slovenian Sovereign Holding) and the Republic of Slovenia	16.2	16.2
Kapitalska družba, d. d. (Pension Fund Management) and Prvi pokojninski sklad (First Pension Fund)	10.8	10.8
Slovenian legal entities and institutional investors	5.8	5.4
Foreign investors	19.0	19.7
Treasury shares	6.7	6.4
Total	100.0	100.0

In the first quarter of 2025, Krka repurchased 102,348 treasury shares and held 2,209,685 treasury shares as at 31 March 2025, accounting for 6.738% of its share capital.

Ten largest shareholders as at 31 March 2025

		No. of	Equity	Voting rights
	Country	shares	(%)	(%)
Kapitalska družba, d. d.	Slovenia	3,493,030	10.65	11.42
Slovenski državni holding, d. d.	Slovenia	2,949,876	9.00	9.65
Republic of Slovenia	Slovenia	2,366,411	7.22	7.74
OTP banka d.d.*	Croatia	1,469,869	4.48	4.81
Erste Group Bank AG*	Austria	1,181,654	3.60	3.86
Clearstream Banking AG*	Germany	1,108,738	3.38	3.63
Luka Koper, d. d.	Slovenia	433,970	1.32	1.42
Privredna banka Zagreb d.d.*	Croatia	363,521	1.11	1.19
State Street Bank and Trust*	USA	205,042	0.63	0.67
KDPW*	Poland	202,618	0.62	0.66
Total		13,774,729	42.00	45.04

* The shares are on custody accounts with the above banks and are owned by their clients.

Equity stakes and voting rights of Management and Supervisory Board members as at 31 March 2025

		Equity	Voting rights
	No. of shares	(%)	(%)
Management Board members
Jože Colarič	22,500	0.069	0.074
Aleš Rotar	13,915	0.042	0.045
Vinko Zupančič	120	0.000	0.000
Milena Kastelic	505	0.002	0.002
Total Management Board members	37,040	0.113	0.121
Supervisory Board members
Julijana Kristl	230	0.001	0.001
Matej Lahovnik	1,000	0.003	0.003
Mojca Osolnik Videmšek	617	0.002	0.002
Tomaž Sever	500	0.002	0.002
Total Supervisory Board members	2,347	0.007	0.008
Total Management and Supervisory Board members	39,387	0.120	0.130

Krka share trading in the first quarter of 2025

Market capitalisation of Krka including treasury shares on the Ljubljana Stock Exchange totalled €5.6 billion as at 31 March 2025. The average daily trading volume of Krka shares amounted to €1.4 million.

Krka Group performance analysis

Revenue

€ thousand	Jan–Mar 2025	Jan–Mar 2024	Index
Revenue from contracts with customers on sales of products and services	521,456	484,104	108
Revenue from contracts with customers on sales of material, and other revenue	658	2,042	32
Total revenue	522,114	486,145	107
Other operating income	1,427	2,049	70
Financial income	62,224	8,788	708
Total income	585,765	496,982	118

Sales by period

Expenses

		% of		% of
€ thousand	Jan–Mar 2025	revenue	Jan–Mar 2024	revenue	Index
Cost of goods sold	217,697	41.7	206,204	42.4	106
Selling and distribution expenses	100,803	19.3	90,662	18.7	111
R&D expenses	49,519	9.5	46,864	9.6	106
General and administrative expenses	32,832	6.3	30,276	6.2	108
Total operating expenses	400,851	76.8	374,006	76.9	107
Financial expenses	5,400	1.0	4,332	0.9	125
Total expenses	406,251	77.8	378,338	77.8	107

Operating results

€ thousand	Jan–Mar 2025	Jan–Mar 2024	Index
Earnings before interest, tax, depreciation and amortisation (EBITDA)	145,862	138,468	105
Operating profit (EBIT)	122,690	114,188	107
Profit before tax	179,514	118,644	151
Net profit	152,484	98,772	154

Net profit by period

Assets

€ thousand	31 Mar 2025	%	31 Dec 2024	%	Index
Non-current assets	1,056,240	34.1	1,022,901	35.9	103
Attributable to:
– Property, plant and equipment	823,013	26.6	806,646	28.3	102
– Intangible assets	100,625	3.3	100,747	3.5	100
Current assets	2,039,544	65.9	1,826,120	64.1	112
Attributable to:
– Inventories	678,805	21.9	638,608	22.4	106
– Trade receivables and other receivables	635,856	20.5	581,601	20.4	109
Total assets	3,095,784	100.0	2,849,021	100.0	109

Equity and liabilities

€ thousand	31 Mar 2025	%	31 Dec 2024	%	Index
Equity	2,426,144	78.4	2,237,784	78.6	108
Non-current liabilities	164,596	5.3	162,662	5.7	101
Attributable to:	138,096	4.5	136,895	4.8	101
– Provisions for post-employment benefits and other non current employee benefits	129,912	4.2	128,765	4.5	101
– Provisions for lawsuits	7,577	0.2	7,598	0.3	100
– Other provisions	607	0.0	532	0.0	114
Current liabilities	505,044	16.3	448,575	15.7	113
– Trade payables	163,665	5.3	148,285	5.2	110
– Contract liabilities	190,725	6.1	166,078	5.8	115
– Other current liabilities	150,654	4.9	134,212	4.7	112
Total equity and liabilities	3,095,784	100.0	2,849,021	100.0	109

Performance ratios

All performance ratios are in line with the Krka Group key strategic objectives.

Marketing and sales

In the first quarter of 2025, the Krka Group generated €522.1 million in sales. Of that, revenue from contracts with customers on sales of products and services totalled €521.5 million. Sales in markets outside Slovenia totalled €489.3 million, accounting for 94% of total Krka Group sales. Sales volume increased by 7% year on year.

Krka Group product and service sales by region

Sales increased in all sales regions and most markets, except in Region Overseas Markets.

Product and service sales by region

€ thousand	Jan–Mar 2025	Jan–Mar 2024	Index
Region Slovenia	32,161	30,124	107
– % of total sales	6.2	6.2
Region South-East Europe	75,019	69,100	109
– % of total sales	14.4	14.3
Region East Europe	176,766	156,422	113
– % of total sales	33.9	32.3
Region Central Europe	124,381	116,797	106
– % of total sales	23.8	24.1
Region West Europe	96,074	92,773	104
– % of total sales	18.4	19.2
Region Overseas Markets	17,055	18,888	90
– % of total sales	3.3	3.9
Total	521,456	484,104	108

Region Slovenia

Holding a 7.6% market share, we maintained the leading position among providers of medicines in Slovenia in terms of sales value.

Products from our key therapeutic categories promoted in marketing campaigns contributed most substantially to sales, above all those for cardiovascular diseases; pain relief; the central nervous system; the gastrointestinal tract; and vitamins and minerals.

Our key prescription pharmaceutical brands for the treatment of cardiovascular diseases were perindopril-based products. Amlessa (perindopril/amlodipine) and Amlewel (perindopril/amlodipine/indapamide) from this family brand recorded the strongest sales and contributed the most to brand awareness in the country. Of our statin product group, we strengthened the leading market position of Sorvasta (rosuvastatin) and bolstered the recognition of the single-pill combination Sorvitimb (rosuvastatin/ezetimibe). We also increased recognition of our oral anticoagulant, Daxanlo (dabigatran).

Of our antidiabetic agents, we raised recognition of two antihyperglycemic agents from the dipeptidyl-peptidase 4 (DPP-4) inhibitor product group: a mono-component agent Maysiglu (sitagliptin) and a single-pill combination Maymetsi (sitagliptin/metformin). Our leading pain relievers were a NSAID Nalgesin Forte (naproxen), a non-opioid analgesic Algominal (metamizole), and an analgesic Daleron 1000 (paracetamol).

We further strengthened the recognition of two central nervous agents, the antipsychotic Parnido (paliperidone) and the antidepressant Dulsevia (duloxetine). We increased the recognition of Vitamin D3 Krka 7000 IU (cholecalciferol), which is taken once per week. We raised product awareness of Aregalu (teriflunomide) indicated for the treatment of multiple sclerosis, and Pomalidomide Krka (pomalidomide) indicated for multiple myeloma treatment.

We focused on bolstering the recognition of our newly launched food supplement Imunogard Krka (betaglucan/vitamins/minerals) powder for solution intended for adults and children. We also launched Herbisland (Iceland moss extract) lozenges for relieving hoarseness and dry, irritating cough. Daleron (paracetamol), magnesiumcontaining products, an analgesic Nalgesin S (naproxen), and the antiseptic Septabene (benzydamine/cetylpyridinium chloride) remained sales leaders.

Floron (florfenicol) and the broad-spectrum parasiticide Milprazon (milbemycin/praziquantel) were our leading animal health products.

Region South-East Europe

Product sales by market

€ thousand	Jan–Mar 2025	Jan–Mar 2024	Index
Romania	20,436	18,722	109
Croatia	13,850	13,440	103
Serbia	10,333	9,640	107
Bulgaria	8,427	7,704	109
North Macedonia	8,120	7,560	107
Bosnia and Herzegovina	7,851	6,648	118
Kosovo	2,697	2,623	103
Montenegro	1,308	868	151
Albania	1,090	985	111
Greece	907	910	100
Total	75,019	69,100	109

According to the latest data, we held a 7.4%-market share in terms of volume, and were the most successful of all providers of prescription pharmaceuticals in the pharmacy segment in Romania. Atoris (atorvastatin), Nolpaza (pantoprazole), and Co-Prenessa (perindopril/indapamide) generated the strongest sales. Nalgesin (naproxen) and Bilobil (ginkgo leaf extract) were our flagship non-prescription products. We also made Herbion Iceland Moss Lozenges available in the country. Antiparasitic products remained our best-selling animal health products, especially the Fypryst brand products and Selehold (selamectin).

In Croatia, we ranked second most successful generic pharmaceutical company by sales of prescription pharmaceuticals in the pharmacy segment. Emanera (esomeprazole), Co-Dalneva (perindopril/amlodipine/indapamide), and Atoris (atorvastatin) generated the highest sales in this product group. Also the newly launched Daxanlo (dabigatran), Valomindo (valsartan/indapamide), and Xerdoxo (rivaroxaban) added to constant sales growth. Nalgesin (naproxen) and Septolete Duo (benzydamine/cetylpyridinium chloride) recorded the strongest sales of non-prescription products. The Fypryst brand products and Enroxil (enrofloxacin) generated the strongest sales of animal health products, but also our newly launched Otomicol (miconazole/prednisolone/polymyxin) saw an increase in sales.

Region East Europe

Product sales by market

€ thousand	Jan–Mar 2025	Jan–Mar 2024	Index
Russian Federation	95,283	85,336	112
Ukraine	27,914	25,086	111
Uzbekistan	16,758	15,094	111
Belarus	7,717	6,945	111
Kazakhstan	5,764	6,145	94
Moldova	4,803	3,231	149
Mongolia	4,798	3,418	140
Azerbaijan	3,095	2,854	108
Armenia	2,855	1,988	144
Kyrgyzstan	2,708	2,050	132
Georgia	2,615	2,700	97
Tajikistan	1,298	1,141	114
Turkmenistan	1,158	433	268
Total	176,766	156,422	113

In the Russian Federation, we recorded a 12% increase expressed in the euro and an 18% increase expressed in the Russian rouble. We surpassed all foreign providers of generic medicines in the country.

Prescription pharmaceuticals accounted for 80% of overall sales in the country. Lorista (losartan), Co-Perineva (perindopril/indapamide), Valsacor (valsartan), Lorista H and Lorista HD (losartan/hydrochlorothiazide), Co-Dalneva (perindopril/amlodipine/indapamide), Vamloset (valsartan/amlodipine), Nolpaza (pantoprazole),

Duloxenta (duloxetine), Valsacor H and Valsacor HD (valsartan/hydrochlorothiazide), and Roxera (rosuvastatin) recorded the highest sales. Co-Perineva (perindopril/indapamide) and Duloxenta (duloxetine) presented the highest absolute growth. We were the leading provider of prescription pharmaceuticals for the treatment of cardiovascular diseases.

Our best-selling non-prescription products were Septolete Total (benzydamine/cetylpyridinium chloride), Nalgesin (naproxen), and products sold under the Herbion brand. Selafort (selamectin), Milprazon (milbemycin/praziquantel), and Cladaxxa (amoxicillin/clavulanic acid) generated the strongest sales of our animal health products. Cladaxxa presented the highest absolute growth as well.

In the first quarter of 2025, the Krka-Rus production plant supplied 73% of all Krka products sold in the Russian Federation.

Uncertainty surrounding Ukraine still impacts reliability of the pharmaceutical market. As to the latest data, we maintained our market position and ranked second among foreign providers of generic medicines in the pharmacy segment, while our sales volume outperformed the average country market growth rate. Prescription pharmaceuticals remained the leading sales group, primarily owing to strong sales of Co-Prenessa (perindopril/indapamide), Co-Amlessa (perindopril/amlodipine/indapamide), Nolpaza (pantoprazole), and Roxera (rosuvastatin). As to the non-prescription product group, the Herbion brand products, Nalgesin (naproxen), and Septolete Total (benzydamine/cetylpyridinium chloride) generated the highest sales, while Milprazon (milbemycin/praziquantel) and Selafort (selamectin) sold best of all animal health products.

According to the latest data, we remained the leading medicine provider in Uzbekistan. Our paramount prescription pharmaceuticals were Valodip (valsartan/amlodipine), Amlessa (perindopril/amlodipine), and Lorista (losartan), while Pikovit and Septolete Total (benzydamine/cetylpyridinium chloride) headed the non-prescription product list.

Region Central Europe

Product sales by market

€ thousand	Jan–Mar 2025	Jan–Mar 2024	Index
Poland	64,020	56,303	114
Czechia	16,428	14,988	110
Hungary	14,546	16,006	91
Slovakia	11,063	11,045	100
Lithuania	9,706	9,227	105
Latvia	5,783	5,968	97
Estonia	2,835	3,261	87
Total	124,381	116,797	106

Poland remained Krka's second largest individual market. As per latest data, we were the fifth largest provider of generic medicines in the country. Sales were driven by prescription pharmaceuticals, most notably Atoris (atorvastatin), Roswera (rosuvastatin), Doreta (tramadol/paracetamol), Valsacor (valsartan), Co-Valsacor (valsartan/hydrochlorothiazide), and Coroswera (rosuvastatin/ezetimibe). Other prescription pharmaceuticals that recorded strong sales were Dulsevia (duloxetine), Valtricom (amlodipine/valsartan/hydrochlorothiazide), Maysiglu (sitagliptin), and Maymetsi (sitagliptin/metformin). The leading non-prescription products remained Septanazal (xylometazoline/dexpanthenol) and the Septolete brand products. Best-selling animal health products were Milprazon (milbemycin/praziquantel), Enroxil (enrofloxacin), and the Dehinel brand products.

In Czechia, our key and largest regional market, we recorded 10% year-on-year growth. According to the latest data, Krka ranked fifth among generic providers of pharmaceuticals. Sales were driven in particular by prescription pharmaceuticals, most notably Asentra (sertraline), Sorvasta (rosuvastatin), Atoris (atorvastatin), Pragiola (pregabalin), Lexaurin (bromazepam), and Nolpaza (pantoprazole). Nalgesin S (naproxen) and the Septolete brand products were our paramount non-prescription products, while the Dehinel and Fypryst brand products remained key animal health products. We added Otomicol (miconazole/prednisolone/polymyxin) to our animal health product range.

Hungary is our third largest regional market in terms of sales, where we maintained the fifth place among providers of generic pharmaceuticals. Prescription pharmaceuticals generated the highest sales, in particular Roxera (rosuvastatin), Emozul (esomeprazole), Co-Prenessa (perindopril/indapamide), Dulsevia (duloxetine), Kventiax

(quetiapine), Valsacor (valsartan), and Zolsana (zolpidem). Of non-prescription products, products from cough-andcold product group Septanazal (xylometazoline/dexpanthenol), the Herbion brand products, and Septolete Extra (benzydamine/cetylpyridinium chloride) generated the strongest sales. Milprazon (milbemycin/praziquantel), Enroxil (enrofloxacin), and the Fypryst brand products were the leading animal health products.

Year-on-year sales in Slovakia, one of the key regional markets, remained on the same level. Prescription pharmaceuticals generated the highest sales, in particular Nolpaza (pantoprazole), Atoris (atorvastatin), Co-Prenessa (perindopril/indapamide), Co-Amlessa (perindopril/amlodipine/indapamide), Amlessa (perindopril/amlodipine), and Prenessa (perindopril). Nalgesin S (naproxen), Panzynorm (pancreatin), Flebaven (diosmin), and Nolpaza (pantoprazole) recorded the highest sales of non-prescription products, while the Fypryst and Dehinel brand products and Enroxil (enrofloxacin) were best-selling animal health products. We launched three new products in Slovakia in the first quarter of 2025: two prescription pharmaceuticals Pomalidomide Krka (pomalidomide) and Vabinxo (valsartan/indapamide), and an animal health product Otomicol (miconazole/prednisolone/polymyxin).

Region West Europe

Product sales by market

€ thousand	Jan–Mar 2025	Jan–Mar 2024	Index
Germany	24,300	23,298	104
Scandinavia	14,240	12,350	115
Portugal	9,458	8,550	111
Italy	8,404	7,295	115
France	6,884	6,248	110
Spain	6,409	7,464	86
United Kingdom	5,066	7,470	68
Finland	4,799	4,833	99
Belgium	4,392	3,019	145
Netherlands	4,179	2,350	178
Austria	3,336	2,390	140
Ireland	3,046	4,149	73
Other European countries	1,562	3,357	47
Total	96,074	92,773	104

Prescription pharmaceuticals generated the highest sales value, above all medicines containing esomeprazole, candesartan, valsartan, and emtricitabine in combination with tenofovir. We remained one of the leading providers of sartans and proton pump inhibitors in the markets of western Europe.

Sales of non-prescription products were driven by the Septolete brand products, and products containing paracetamol. Antiparasitic products for companion animals drove sales, most notably single-pill combinations of milbemycin and praziquantel, and fipronil. Medicines containing toltrazuril sold best of our products for farm animals.

Germany remained our most important regional market, where cardiovascular and oncology agents, followed by central nervous system agents, antidiabetic agents, and medicines for the treatment of gastrointestinal tract and metabolism recorded the highest sales. Medicines containing candesartan, valsartan, ramipril, and sitagliptin generated the strongest sales. We were the leading provider of single-pill combinations of ramipril and amlodipine and candesartan in combination with amlodipine.

Region Overseas Markets

Product sales by market

€ thousand	Jan–Mar 2025	Jan–Mar 2024	Index
Far East and Africa	9,007	9,102	99
Middle East	4,769	6,989	68
China	2,747	2,276	121
Americas	532	522	102
Total	17,055	18,888	90

In the first quarter of 2025, we generated 90% of year-on-year sales. Sales decreased primarily due to the crisis in the Middle East, where our sales office recorded a 32% decrease. Our sales office in China recorded the highest sales increase of 21%.

Product and service sales by group

Product and service sales by group

€ thousand	Jan–Mar 2025	Jan–Mar 2024	Index
Prescription pharmaceuticals	431,584	400,179	108
– % of total sales	82.8	82.7
Non-prescription products	45,618	42,809	107
– % of total sales	8.7	8.8
Animal health products	32,310	30,163	107
– % of total sales	6.2	6.2
Health resort and tourist services	11,944	10,953	109
– % of total sales	2.3	2.3
Total	521,456	484,104	108

Prescription pharmaceuticals

Sales of our prescription pharmaceuticals increased in Region East Europe (up 13%), Region Slovenia (up 9%), Region South-East Europe (up 8%), Region Central Europe and Region West Europe (up 6% each), and decreased in Region Overseas Markets (down 12%).

We increased the year-on-year sales in our four largest markets as follows: the Russian Federation (up 10%), Poland (up 13%), Ukraine (up 16%), and Germany (up 5%). Other major market saw sales increases as follows: Slovenia and Scandinavia (9% each), Serbia and Czechia (8% each), Romania (6%), Uzbekistan (4%), and Croatia (3%).

The top ten prescription pharmaceuticals in terms of sales were product groups containing perindopril (Prenessa*, Co-Prenessa*, Amlessa*, Co-Amlessa*, Roxiper*, Roxampex*); valsartan (Valsacor, Co-Valsacor*, Wamlox*, Valtricom*, Valarox*, Valomindo*); rosuvastatin (Roswera*, Co-Roswera*); losartan (Lorista*, Lorista H*, Lorista HD*, Tenloris*); pantoprazole (Nolpaza*); atorvastatin (Atoris); esomeprazole (Emanera*); telmisartan (Tolura*, Tolucombi*, Telassmo*, Tolutris*, Telinstar*); candesartan (Karbis*, Karbicombi*, Kandoset*, Kanpiduo*); and tramadol (Doreta*, Tadol*).

Sales growth was driven by products containing valsartan and rosuvastatin, and by pomalidomide of our new launches made available in the first countries at the end of 2024.

We extended our portfolio with two new medicines, a single-pill antihypertensive Candecor-Inda* (candesartan/indapamide) first launched in Germany, and anticoagulant indicated for the treatment and prevention of thromboembolic events Aboxoma* (apixaban) launched in the United Kingdom, Bosnia and Herzegovina, and Montenegro.

Products marketed under different product brand names or the Krka trademark in individual markets are marked with asterisk (*).

Non-prescription products

Non-prescription product sales increased in Region East Europe (up 13%), Region South-East Europe (up 6%), Region Central Europe (up 1%), and Region Overseas Markets (up 55%), and slightly decreased in Region West Europe (down 2%) and Region Slovenia (down 4%).

The Septolete* brand products, Nalgesin* (naproxen), and products sold under Herbion*, Septanazal, and Pikovit* brands generated the highest sales.

We made available Herbisland* lozenges, our new sore throat remedy containing Iceland moss extract, in Slovenia, Lithuania, Estonia, Romania, and Scandinavia.

Animal health products

The following regions increased animal health product sales: Region South-East Europe (29%), Region Central Europe (23%), Region Slovenia (16%), Region East Europe (12%). Region West Europe recorded a 17% drop in sales of animal health products.

Selehold* (selamectin), Cladaxxa* (amoxicillin/clavulanic acid), and Milprazon* (milbemycin/praziquantel) generated the strongest sales.

Health resort and tourist services

Terme Krka recorded 82,486 overnight stays in the first quarter of 2025, up 7% year on year. Talaso Strunjan recorded 27,605 overnight stays, the most of the three resorts, and was followed by Terme Šmarješke Toplice with 26,953 and Terme Dolenjske Toplice with 25,697 overnight stays. The number of foreign guests staying overnight increased by 15%. Overnight stays by foreign guests, of whom the majority was from Italy, Croatia, and Germany, accounted for 10% of the guest structure.

Research and development

In the first quarter of 2025, we added four new prescription pharmaceuticals to our product portfolio.

We finalised over 200 registration procedures for new and already established products and received approvals for more than 4,900 regulatory variations to ensure uninterrupted supply to various markets.

Prescription pharmaceuticals

We concluded registration procedures for four new products and were granted additional marketing authorisations for our established products in additional markets.

We obtained marketing authorisations for our innovative single-pill antidiabetic agent, Dagraduo* (dapagliflozin/sitagliptin) film-coated tablets. This medicine of choice inhibits SGLT2 and dipeptidyl-peptidase 4 and improves glycaemic control in adults with type 2 diabetes mellitus when treatment with both dapagliflozin and sitagliptin is appropriate.

We were granted marketing authorisations for an innovative combination of rosuvastatin and perindopril, Pixoroso* film-coated tablets. This lipid modifying agent is indicated for patients with concomitant arterial hypertension and hyperlipidaemia to achieve target values of lipids and blood pressure by taking just one tablet per day.

We concluded the registration procedure in selected European markets for a new strength of Co-Amlessa* (perindopril/amlodipine/indapamide) tablets to enable tailoring of the treatment to the needs of individual patients in various countries.

We were the first generic manufacturer who was granted marketing authorisations for a single-pill analgesic Delanxara* (tramadol/dexketoprofen) film-coated tablets. One tablet contains two active ingredients with different mechanisms of action, generating a synergistic and complementary effect to alleviate moderate to severe acute pain at relatively low dosage.

We were granted new marketing authorisations for our established products in additional markets. Varesta (vortioxetine) film-coated tablets, available in the EU countries, is indicated for the treatment of major depressive episodes in adults and is a medicine of choice for patients with severe forms of the disease. In the eastern European

countries, we were granted approvals for a new strength of an antihypertensive agent Valsacor INDA (valsartan/indapamide) 80 mg/1.5 mg modified release tablets and an antidiabetic agent Asiglia Met (sitagliptin/metformin) film-coated tablets. We were granted marketing authorisations in additional markets of southeastern Europe for a contemporary antithrombotic agent Daxanlo (dabigatran) capsules and a single-pill combination Valomindo (valsartan/indapamide) modified release tablets.

Non-prescription products

We extend our portfolio of consumer health products and food supplements in additional markets in the first quarter of 2025. We were granted marketing authorisations for Herbion Iceland Moss Lozenges that contain dry extract of Iceland moss. The remedy relieves irritation of the mucosa in the throat and mouth and the associated dry cough, and can be taken by adults and adolescents 12 years of age and older.

Animal health products

Also in the first quarter of 2025, new marketing authorisations were granted for established products in additional markets. We were granted approvals for Ruboxim (robenacoxib) chewable tablets indicated for relieving pain and treating inflammation associated with chronic osteoarthritis and soft tissue surgeries in dogs. We were also granted marketing authorisations for Otomicol (miconazole/prednisolone/polymyxin) ear drops and cutaneous suspension for dogs, cats, and guinea pigs. We were also granted marketing authorisations for Flovuxin (florfenicol/flunixin) solution for injection indicated for the treatment of bacterial respiratory infections. Also, several companion animal products were newly approved for marketing in overseas countries.

Investments

In the first quarter of 2025, the Krka Group allocated €21.1 million to investments, of which €15.3 million to the controlling company.

We upgraded automated washing systems in Notol, our solid dosage forms production plant in Novo mesto, Slovenia. We also expanded granulation and tablet output capacities.

We intend to increase the production capacities by installing additional equipment at Notol 2, another production plant in Novo mesto.

We installed a coating line and a container filling-and-packaging line at the Solid Dosage Products plant in Novo mesto, Slovenia.

A new suspension inspection line is currently being installed at the Sterile Products Department in Novo mesto, Slovenia, which will significantly increase the output capacity.

Works are currently underway for the construction of a new multi-storey building, which will be connected to the existing plant, Powders and Solutions, at the Bršljin Department in Novo mesto, Slovenia, to increase our production capacities. Installation of new packaging lines in the existing facility will boost the capacities for packaging animal health tablets and spot-on products.

At the Ljutomer plant, Slovenia, we intend to increase production capacities for uncoated lozenges and upgrade the line for continued production of lozenges. We are about to start building an automated high-bay warehouse and expanding the plant.

The construction of a technically and technologically advanced waste water treatment plant in Krško, Slovenia, has been completed and installation works are currently underway. We plan to postpone the construction of other buildings for a few years. We are still in the process of obtaining the environmental protection and chemical safety (SEVESO) permits.

At the production and distribution centre in Jastrebarsko, Croatia, investments are currently in progress to increase production capacities.

At our subsidiary TAD Pharma in Germany, we refurbished the old wing of the office building to increase its energy efficiency. An extension to the commissioning warehouse will provide additional capacities.

We also intend to ensure smooth purified pharmaceutical water supplies and upgrade the granulation line at our subsidiary Krka - Polska.

We plan the complete renovation of Hotel Vital in Terme Dolenjske Toplice to enhance and diversify our wellness service portfolio.

Employees

At the end of March 2025, the Krka Group had 12,925 employees on its payroll, with 5,331 or 41% working outside Slovenia. When accounting for agency workers, the Krka Group had 12,967 persons on its payroll, up 110 on the year-end 2024. Among all employees, 47% hold at least a university-level qualification, including 201 with a doctoral degree.

Krka Group employees by education

	31 Mar 2025		31 Dec 2024
	Headcount	%	Headcount	%
PhD	201	1.6	202	1.6
Master of science	395	3.1	455	3.5
University degree	5,517	42.7	5,390	42.1
Higher professional education	2,161	16.7	2,141	16.7
Vocational college education	377	2.9	379	3.0
Secondary school education	3,146	24.3	3,132	24.4
Other	1,128	8.7	1,111	8.7
Total	12,925	100.0	12,810	100.0

We continuously attract new talented employees by awarding scholarships. At the end of March, Krka had 64 scholarship holders, primarily pharmacy and chemistry students. We also offer scholarships to exceptional students from Krka's other fields of interest. Our personnel development and succession planning system ensures that Krka Group employees fill most of our key professional and managerial positions.

We also invest in upgrading and development of their professional skills and expertise. They undergo professional training in their specialist fields and participate in training programmes on quality, management, information technologies, personal growth, and foreign languages in Slovenia as well as abroad. We deliver most educational programmes in-house and tailor them to employee needs, technological processes, market situations, and development needs of the Krka Group. We update the programmes regularly and introduce new forms of education adapted to the contemporary approaches to work.

At the end of March, 188 employees were enrolled in part-time studies co-funded by Krka, 19 of them at the postgraduate level.

Krka is also included in the national vocational qualification (NVQ) system. Since 2004 until the end of March 2025, we awarded 2,189 NVQ certificates to Krka employees for four vocational qualifications. At the end of March 2025, 169 Krka employees were included in the process of obtaining a national vocational qualification.

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE KRKA GROUP, WITH NOTES

Consolidated statement of financial position of the Krka Group

€ thousand	31 Mar 2025	31 Dec 2024	Index
Assets
Property, plant and equipment	823,013	806,646	102
Intangible assets	100,625	100,747	100
Investments in joint ventures	11,726	2,492	471
Loans	31,199	35,330	88
Investments	22,433	22,024	102
Deferred tax assets	66,033	54,434	121
Other non-current assets	1,211	1,228	99
Total non-current assets	1,056,240	1,022,901	103
Assets held for sale	41	44	93
Inventories	678,805	638,608	106
Contract assets	556	672	83
Trade receivables	607,953	552,710	110
Other receivables	27,903	28,891	97
Loans	10,447	10,506	99
Investments	246,240	249,794	99
Cash and cash equivalents	467,599	344,895	136
Total current assets	2,039,544	1,826,120	112
Total assets	3,095,784	2,849,021	109
Equity
Share capital	54,732	54,732	100
Treasury shares	-180,359	-163,491	110
Reserves	206,586	136,315	152
Retained earnings	2,325,938	2,190,627	106
Total equity holders of the controlling company	2,406,897	2,218,183	109
Non-controlling interests	19,247	19,601	98
Total equity	2,426,144	2,237,784	108
Liabilities
Provisions	138,096	136,895	101
Deferred income	5,571	5,654	99
Lease liabilities	10,356	9,502	109
Deferred tax liabilities	10,573	10,611	100
Total non-current liabilities	164,596	162,662	101
Trade payables	163,665	148,285	110
Lease liabilities	3,819	3,649	105
Income tax payables	40,475	24,379	166
Contract liabilities	190,725	166,078	115
Other current liabilities	106,360	106,184	100
Total current liabilities	505,044	448,575	113
Total liabilities	669,640	611,237	110
Total equity and liabilities	3,095,784	2,849,021	109

Consolidated income statement of the Krka Group

€ thousand	Jan–Mar 2025	Jan–Mar 2024	Index
Revenue	522,114	486,145	107
– Revenue from contracts with customers	521,261	485,473	107
– Other revenue	853	672	127
Cost of goods sold	-217,697	-206,204	106
Gross profit	304,417	279,941	109
Other operating income	1,427	2,049	70
Selling and distribution expenses	-100,803	-90,662	111
– Whereof net impairments and write-offs of receivables	-3,273	-214
R&D expenses	-49,519	-46,864	106
General and administrative expenses	-32,832	-30,276	108
Operating profit	122,690	114,188	107
Financial income	62,224	8,788	708
Financial expenses	-5,400	-4,332	125
Net financial result	56,824	4,456
Profit before tax	179,514	118,644	151
Income tax expense	-27,030	-19,872	136
Net profit	152,484	98,772	154
Attributable to:
– Equity holders of the controlling company	152,179	98,879	154
– Non-controlling interests	305	-107
Basic earnings per share (€)*	4.97	3.21	155
Diluted earnings per share (€)**	4.97	3.21	155

* Net profit/Average number of shares issued in the period, excluding treasury shares

** All shares issued by the controlling company are ordinary shares, hence the diluted earnings per share ratio equalled basic earnings per share.

Consolidated statement of other comprehensive income of the Krka Group

€ thousand	Jan–Mar 2025	Jan–Mar 2024	Index
Net profit	152,484	98,772	154
Other comprehensive income for the period
Other comprehensive income reclassified to profit or loss
at a future date
Translation reserve	52,425	-319
Net other comprehensive income reclassified to profit or	52,425	-319
loss at a future date
Other comprehensive income that will not be reclassified to
profit or loss at a future date
Change in fair value of financial assets	409	1,898	22
Deferred tax effect	-90	-418	22
Net other comprehensive income that will not be	319	1,480	22
reclassified to profit or loss at a future date
Total other comprehensive income for the period (net of tax)	52,744	1,161	4,543
Total comprehensive income for the period (net of tax)	205,228	99,933	205
Attributable to:
– Equity holders of the controlling company	205,582	99,948	206
– Non-controlling interests	-354	-15	2,360

Consolidated statement of changes in equity of the Krka Group

			Reserves Retained earnings
	Share	Treasury	Reserves for treasury	Share	Legal	Statutory	Fair value	Translation	Other profit	Retained earnings from previous	Profit for	Total equity attributable to the holders of the controlling	Non controlling	Total
€ thousand	capital	shares	shares	premium	reserves	reserves	reserve	reserve	reserves	periods	the period	company	interests	equity
Balance at 1 Jan 2025	54,732	-163,491	163,491	105,897	14,990	30,000	-11,362	-166,701	1,620,098	238,545	331,984	2,218,183	19,601	2,237,784
Net profit	0	0	0	0	0	0	0	0	0	0	152,179	152,179	305	152,484
Total other comprehensive income for the period (net of tax)	0	0	0	0	0	0	331	53,072	0	0	0	53,403	-659	52,744
Total comprehensive income for the period (net of tax)	0	0	0	0	0	0	331	53,072	0	0	152,179	205,582	-354	205,228
Transactions with owners, recognised in equity
Transfer of previous periods' profit to retained earnings	0	0	0	0	0	0	0	0	0	331,984	-331,984	0	0	0
Repurchase of treasury shares	0	-16,868	0	0	0	0	0	0	0	0	0	-16,868	0	-16,868
Formation of reserves for treasury shares	0	0	16,868	0	0	0	0	0	0	0	-16,868	0	0	0
Total transactions with owners, recognised in equity	0	-16,868	16,868	0	0	0	0	0	0	331,984	-348,852	-16,868	0	-16,868
Balance at 31 Mar 2025	54,732	-180,359	180,359	105,897	14,990	30,000	-11,031	-113,629	1,620,098	570,529	135,311	2,406,897	19,247	2,426,144

			Reserves					Retained earnings
			Reserves							Retained earnings		Total equity attributable to
			for						Other	from		the holders of	Non
	Share	Treasury	treasury	Share	Legal	Statutory	Fair value	Translation	profit	previous	Profit for	the controlling	controlling	Total
€ thousand	capital	shares	shares	premium	reserves	reserves	reserve	reserve	reserves	periods	the period	company	interests	equity
Balance at 1 Jan 2025	54,732	-138,489	138,489	105,897	14,990	30,000	-511	-134,370	1,544,595	246,699	300,023	2,162,055	19,711	2,181,766
Net profit	0	0	0	0	0	0	0	0	0	0	98,879	98,879	-107	98,772
Total other comprehensive income for the period (net of tax)	0	0	0	0	0	0	1,483	-414	0	0	0	1,069	92	1,161
Total comprehensive income for the period (net of tax)	0	0	0	0	0	0	1,483	-414	0	0	98,879	99,948	-15	99,933
Transactions with owners, recognised in equity
Transfer of previous periods' profit to retained earnings	0	0	0	0	0	0	0	0	0	300,023	-300,023	0	0	0
Repurchase of treasury shares	0	-6,569	0	0	0	0	0	0	0	0	0	-6,569	0	-6,569
Formation of reserves for treasury shares	0	0	6,569	0	0	0	0	0	0	0	-6,569	0	0	0
Total transactions with owners, recognised in equity	0	-6,569	6,569	0	0	0	0	0	0	300,023	-306,592	-6,569	0	-6,569
Balance at 31 Mar 2025	54,732	-145,058	145,058	105,897	14,990	30,000	972	-134,784	1,544,595	546,722	92,310	2,255,434	19,696	2,275,130

Consolidated statement of cash flows of the Krka Group

€ thousand	Jan–Mar 2025	Jan–Mar 2024
CASH FLOWS FROM OPERATING ACTIVITIES
Net profit	152,484	98,772
Adjustments for:	93,861	40,451
– Amortisation/Depreciation	23,172	24,280
– Net foreign exchange gains and losses	35,158	-1,176
– Net write-offs and allowances for inventories	4,362	2,354
– Net impairments and write-offs of receivables	3,273	214
– Investment income	-5,009	-9,521
– Investment expenses	3,842	2,036
– Income on financing activities	-1	0
– Interest expense and other financial expenses	2,034	2,392
– Income tax expense	27,030	19,872
Operating profit before changes in net current assets	246,345	139,223
Change in trade receivables	-57,141	-59,877
Change in inventories	-44,559	-1,873
Change in trade payables	45,571	19,883
Change in provisions	155	103
Change in deferred income	-82	-119
Change in other current liabilities	176	-11,246
Income tax paid	-18,286	-23,829
Net cash flow from operating activities	172,179	62,265
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received	3,049	3,293
Proceeds from sale of property, plant and equipment	368	939
Acquisition of property, plant and equipment	-25,263	-29,145
Acquisition of intangible assets	-1,379	-976
Investments in joint ventures	-9,234	0
Proceeds from non-current loans	1,214	30,332
Payments for non-current loans	-908	-118
Net proceeds from current loans	3,323	2,512
Proceeds from sale of non-current investments	20,271	29,769
Payments for acquiring non-current investments	-15	-7
Proceeds from sale of current investments	120,000	30,000
Payments for acquiring current investments	-138,591	-45,870
Proceeds from derivatives	13	14
Payments for derivatives	0	-1,584
Net cash flow from investing activities	-27,152	19,159
CASH FLOWS FROM FINANCING ACTIVITIES
Interest paid	-832	-1,209
Lease liabilities paid	-1,113	-1,048
Repurchase of treasury shares	-16,868	-6,569
Net cash flow from financing activities	-18,813	-8,826
Net increase in cash and cash equivalents	126,214	72,598
Cash and cash equivalents at beginning of year	344,895	174,011
Effect of movements in exchange rates on cash held	-3,510	-10
Closing balance of cash and cash equivalents	467,599	246,599

Segment reporting of the Krka Group

			South-Eastern					Total segment
	European Union		Europe		Eastern Europe		reporting		Other		Eliminations		Total
	Jan–Mar	Jan–Mar	Jan–Mar	Jan–Mar	Jan–Mar	Jan–Mar	Jan–Mar	Jan–Mar	Jan–Mar	Jan–Mar	Jan–Mar	Jan–Mar	Jan–Mar	Jan–Mar
€ thousand	2025	2024	2025	2024	2025	2024	2025	2024	2025	2024	2025	2024	2025	2024
Revenue from sales to non-group customers	290,232	270,228	31,401	28,327	176,784	156,446	498,417	455,001	23,697	31,144			522,114	486,145
Revenue from sales to intra-group customers	114,625	106,047	18,615	18,841	196,749	158,864	329,989	283,752	4,608	7,242	-334,597	-290,994	0	0
Total revenue	404,857	376,275	50,016	47,168	373,533	315,310	828,406	738,753	28,305	38,386	-334,597	-290,994	522,114	486,145
Other operating income	1,212	1,918	0	6	211	125	1,423	2,049	4	0			1,427	2,049
Operating expenses	-237,867	-224,526	-19,720	-18,376	-124,761	-106,853	-382,348	-349,755	-18,503	-24,251			-400,851	-374,006
Intra-group operating expenses, including elimination of profits	-114,625	-106,047	-18,616	-18,841	-196,749	-158,864	-329,990	-283,752	-4,607	-7,242	334,597	290,994	0	0
Operating profit	53,577	47,620	11,681	9,957	52,234	49,718	117,492	107,295	5,198	6,893	0	0	122,690	114,188
Interest income	2,528	2,312	0	0	307	254	2,835	2,566	322	313			3,157	2,879
Intra-group interest income	673	1,675	0	0	0	0	673	1,675	0	0	-673	-1,675	0	0
Interest expense	-79	-55	-13	-6	-63	-54	-155	-115	-3	-8			-158	-123
Intra-group interest expense	-673	-1,675	0	0	0	0	-673	-1,675	0	0	673	1,675	0	0
Net financial result	5,533	3,443	-112	-60	54,403	-1,371	59,824	2,012	-3,000	2,444			56,824	4,456
Income tax expense	-13,698	-9,285	-2,604	-1,593	-9,770	-7,907	-26,072	-18,785	-958	-1,087			-27,030	-19,872
Net profit	45,412	41,778	8,965	8,304	96,867	40,440	151,244	90,522	1,240	8,250	0	0	152,484	98,772
Investments	18,811	25,879	20	103	1,720	1,003	20,551	26,985	515	11			21,066	26,996
Depreciation of property, plant and equipment	14,316	15,459	493	531	5,016	4,892	19,825	20,882	756	727			20,581	21,609
Depreciation of right-of-use assets	838	758	33	39	157	134	1,028	931	21	20			1,049	951
Amortisation of intangible assets	931	1,056	76	91	487	489	1,494	1,636	48	84			1,542	1,720
	31 Mar 2025	31 Dec 2024	31 Mar 2025	31 Dec 2024	31 Mar 2025	31 Dec 2024	31 Mar 2025	31 Dec 2024	31 Mar 2025	31 Dec 2024	31 Mar 2025	31 Dec 2024	31 Mar 2025	31 Dec 2024
Total assets	2,215,849	2,078,751	80,457	76,528	685,777	577,157	2,982,083	2,732,436	113,701	116,585			3,095,784	2,849,021
Non-current assets exclusive of deferred tax assets	853,720	854,447	6,241	6,336	92,344	74,061	952,305	934,844	37,902	33,623			990,207	968,467
Total liabilities	436,046	410,885	23,158	19,913	173,802	138,560	633,006	569,358	36,634	41,879			669,640	611,237

Notes to consolidated financial statements of the Krka Group

Costs by nature €400,851 thousand

€ thousand	Jan–Mar 2025	Jan–Mar 2024	Index
Cost of goods and materials	146,881	140,332	105
Cost of services	67,144	70,255	96
Employee benefit expenses	151,498	134,616	113
Amortisation and depreciation	23,172	24,280	95
Net write-offs and allowances for inventories	4,362	2,354	185
Net impairments and write-offs of receivables	3,273	214
Other operating expenses	11,668	11,246	104
Total costs	407,998	383,297	106
Change in the value of inventories of finished products and work	-7,147	-9,291	77
in progress
Total	400,851	374,006	107

Employee benefits €151,498 thousand

€ thousand	Jan–Mar 2025	Jan–Mar 2024	Index
Gross wages and salaries and continued pay	116,969	104,278	112
Social security contributions	7,882	8,195	96
Pension insurance contributions	16,282	13,717	119
Payroll tax	202	185	109
Post-employment benefits and other non-current employee benefits	1,817	1,498	121
Other employee benefit expenses	8,346	6,743	124
Total employee benefit expenses	151,498	134,616	113

Other operating expenses €11,668 thousand

€ thousand	Jan–Mar 2025	Jan–Mar 2024	Index
Grants and assistance for humanitarian and other purposes	284	361	79
Environmental protection expenditures	1,491	1,763	85
Other taxes and levies	7,764	6,863	113
Loss on sale and write-offs of property, plant and equipment and intangible assets	434	567	77
Other operating expenses	1,695	1,692	100
Total other operating expenses	11,668	11,246	104

Other levies include various taxes and levies on pharmaceuticals and fees paid to medical representatives in individual foreign countries for pursuing promotional activities.

Financial income and expenses

€ thousand	Jan–Mar 2025	Jan–Mar 2024	Index
Net foreign exchange gains	57,604	0
Interest income	3,157	2,879	110
Derivative income	13	3,378	0
– Realised revenue	13	14	93
– Change in fair value	0	3,364	0
Income from other financial instruments	1,450	2,531	57
– Realised revenue	1,772	772	230
– Change in fair value	-322	1,759
Total financial income	62,224	8,788	708
Net foreign exchange losses	0	-350	0
Interest expense	-158	-123	128
– Interest paid	-1	-5	20
– Interest expense on lease liabilities	-157	-118	133
Derivative expenses	-3,364	-1,584	212
– Realised expenses	0	-1,584	0
– Change in fair value	-3,364	0
Other financial expenses	-1,878	-2,275	83
Total financial expenses	-5,400	-4,332	125
Net financial result	56,824	4,456

Income tax expense €27,030 thousand

Current income tax amounted to €34,108 thousand or 19.0% of profit before tax. Taking into account deferred tax of -€7,084 thousand and other income-based taxes of €6,000, the tax expensed in the income statement totalled €27,030 thousand. The effective tax rate was 15.1%.

Property, plant and equipment €823,013 thousand

€ thousand	31 Mar 2025	31 Dec 2024	Index
Land	65,705	65,317	101
Buildings	343,257	334,182	103
Equipment	318,344	317,045	100
Property, plant and equipment being acquired	82,103	77,460	106
Right-of-use assets	13,604	12,642	108
Total property, plant and equipment	823,013	806,646	102

The value of property, plant, and equipment accounted for 27% of the Krka Group balance sheet total. See the 'Investments' section in the business report for details on Krka's major investments.

Intangible assets €100,625 thousand

€ thousand	31 Mar 2025	31 Dec 2024	Index
Goodwill	42,644	42,644	100
Trademark	32,088	32,305	99
Concessions, trademarks and licences	15,885	15,795	101
Other intangible assets	7,569	7,741	98
– Long-term deferred operating costs	168	185	91
– Development-related projects	4,234	4,389	96
– Emission coupons	3,167	3,167	100
Intangible assets being acquired	2,439	2,262	108
Total intangible assets	100,625	100,747	100

Loans €41,646 thousand

€ thousand	31 Mar 2025	31 Dec 2024	Index
Non-current loans	31,199	35,330	88
– Loans to others	31,199	35,330	88
Current loans	10,447	10,506	99
– Portion of non-current loans maturing next year	9,983	9,970	100
– Loans to others	10	20	50
– Deposits granted to banks	2	2	100
– Current interest receivables	452	514	88
Total loans	41,646	45,836	91

Investments €268,673 thousand

€ thousand	31 Mar 2025	31 Dec 2024	Index
Non-current investments	22,433	22,024	102
– Investments at fair value through OCI (equity instruments)	22,433	22,024	102
Current investments including derivatives	246,240	249,794	99
– Investments at fair value through profit or loss	244,151	224,110	109
– Investments at amortised cost (debt instruments)	0	20,231	0
– Derivatives	2,089	5,453	38
Total investments	268,673	271,818	99

Investments at fair value through OCI comprised €1,365 thousand of shares and interests in companies in Slovenia (end of 2024: €1,137 thousand), and €21,068 thousand of shares and interests in companies located outside Slovenia (end of 2024: €20,887 thousand).

The decrease in investments at amortised cost of €20,231 thousand occurred due to the maturity of government bonds. The increase in investments at fair value through profit or loss amounting to €20.041 thousand included acquisitions of treasury bills of €138,591 thousand, disposals of treasury bills due to their maturity totalling €120,000 thousand, realised financial income from disposal of treasury bills amounting to €1,772 thousand, and revaluation of treasury bills totalling -€322 thousand.

Inventories €678,805 thousand

€ thousand	31 Mar 2025	31 Dec 2024	Index
Material	262,510	266,402	99
Work in progress	129,558	121,520	107
Finished products	195,432	180,986	108
Merchandise	43,388	32,783	132
Advances for inventories	47,917	36,917	130
Total inventories	678,805	638,608	106

Trade and other receivables €635,856 thousand

€ thousand	31 Mar 2025	31 Dec 2024	Index
Current trade receivables	607,953	552,710	110
Current receivables due from others	27,903	28,891	97
Total trade and other receivables	635,856	581,601	109

Cash and cash equivalents €467,599 thousand

€ thousand	31 Mar 2025	31 Dec 2024	Index
Cash in hand	60	52	115
Bank balances	467,539	344,843	136
Total cash and cash equivalents	467,599	344,895	136

Bank balances included a deposit of €301,493 thousand with a maturity of up to 90 days (31 December 2024: €204,438 thousand).

Equity €2,426,144 thousand

€ thousand	31 Mar 2025	31 Dec 2024	Index
Share capital	54,732	54,732	100
Treasury shares	-180,359	-163,491	110
Reserves	206,586	136,315	152
– Reserves for treasury shares	180,359	163,491	110
– Share premium	105,897	105,897	100
– Legal reserves	14,990	14,990	100
– Statutory reserves	30,000	30,000	100
– Fair value reserve	-11,031	-11,362	97
– Translation reserve	-113,629	-166,701	68
Retained earnings	2,325,938	2,190,627	106
Total equity attributable to the holders of the controlling company	2,406,897	2,218,183	109
Non-controlling interests	19,247	19,601	98
Total equity	2,426,144	2,237,784	108

Provisions €138,096 thousand

€ thousand	31 Mar 2025	31 Dec 2024	Index
Provisions for lawsuits	7,577	7,598	100
Provisions for post-employment benefits	108,483	107,900	101
Provisions for other non-current employee benefits	21,429	20,865	103
Other provisions	607	532	114
Total provisions	138,096	136,895	101

Deferred income €5,571 thousand

€ thousand	31 Mar 2025	31 Dec 2024	Index
Grants received from the European Regional Development Fund and budget of the Republic of Slovenia intended for the production of pharmaceuticals in the new Notol 2 plant	559	572	98
Grants received from the budget for the Dolenjske and Šmarješke Toplice health resorts and Golf Grad Otočec	3,043	3,059	99
Grants received from the European Regional Development Fund (Farma GRS)	1,365	1,407	97
Subsidy for acquisition of electric drive vehicles	1	1	100
Property, plant and equipment received free of charge	13	17	76
Emission coupons	10	10	100
Subsidy for purchase of joinery	88	88	100
Subsidy for upgrading trucks	6	6	100
Subsidy for electricity production from renewable energy installations	486	494	98
Total deferred income	5,571	5,654	99

Trade payables €163,665 thousand

€ thousand	31 Mar 2025	31 Dec 2024	Index
Current trade payables	163,665	148,285	110
Payables to domestic suppliers	52,651	50,266	105
Payables to foreign suppliers	111,014	98,019	113
Total trade payables	163,665	148,285	110

Current contract liabilities €190,725 thousand

€ thousand	31 Mar 2025	31 Dec 2024	Index
Refund liabilities	184,259	160,979	114
– Bonuses and volume rebates	182,733	159,148	115
– Rights of return	1,526	1,831	83
Contract liabilities	6,466	5,099	127
– Deferred income	1,210	1,187	102
– Advances from other customers	5,256	3,912	134
Total current contract liabilities	190,725	166,078	115

Other current liabilities €106,360 thousand

€ thousand 31 Mar 2025 31 Dec 2024 Index Payables to employees – gross salaries, other receipts and charges 89,809 92,318 ⁹⁷ Other 16,551 13,866 119 Total other current liabilities 106,360 106,184 100

Contingent liabilities €18,246 thousand

€ thousand	31 Mar 2025	31 Dec 2024	Index
Guarantees issued	17,245	17,238	100
Other	1,001	819	122
Total contingent liabilities	18,246	18,057	101

Fair value

	31 Mar 2025		31 Dec 2024
	Carrying		Carrying
€ thousand	amount	Fair value	amount	Fair value
Non-current financial assets
Loans	31,199		35,330
Investments at fair value through OCI (equity instruments)	22,433	22,433	22,024	22,024
Current financial assets
Loans	10,447		10,506
Investments at fair value through profit or loss	244,151	244,151	224,110	224,110
Investments at amortised cost (debt instruments)	0		20,231
Derivatives	2,089	2,089	5,453	5,453
Trade receivables	607,953		552,710
Cash and cash equivalents	467,599		344,895
Non-current financial liabilities
Lease liabilities	-10,356		-9,502
Current financial liabilities
Lease liabilities	-3,819		-3,649
Trade payables excluding advances	-163,665		-148,285
Contract liabilities excluding advances	-182,733		-159,148
Other liabilities excluding amounts owed to the state, to employees, and advances	-6,285		-6,056
Total	1,019,013	268,673	888,619	251,587

In terms of fair value, assets and liabilities are classified into three levels:

• Level 1 Assets at market price;
• Level 2 Assets not classified within level 1 and the value of which is determined directly or indirectly based on observable market data;
• Level 3 Assets, the value of which cannot be determined using observable market data.

Assets at fair value

		31 Mar 2025			31 Dec 2024
€ thousand	Level 1	Level 2	Level 3	Total	Level 1	Level 2	Level 3	Total
Assets at fair value
Investments at fair value through OCI (equity instruments)	21,046	0	1,387	22,433	20,637	0	1,387	22,024
Investments at fair value through profit or loss	244,151	0	0	244,151	224,110	0	0	224,110
Derivatives	0	0	2,089	2,089	0	0	5,453	5,453
Total assets at fair value	265,197	0	3,476	268,673	244,747	0	6,840	251,587

CONDENSED FINANCIAL STATEMENTS OF KRKA, D. D., NOVO MESTO, WITH NOTES

Statement of financial position of Krka, d. d., Novo mesto

€ thousand	31 Mar 2025	31 Dec 2024	Index
Assets
Property, plant and equipment	607,676	609,628	100
Intangible assets	25,009	25,026	100
Investments in subsidiaries	355,265	355,265	100
Investments in joint ventures	11,726	2,492	471
Loans	23,647	23,401	101
Investments	22,432	22,023	102
Deferred tax assets	5,434	5,677	96
Other non-current assets	660	668	99
Total non-current assets	1,051,849	1,044,180	101
Assets held for sale	41	41	100
Inventories	551,292	548,188	101
Trade receivables	621,425	518,425	120
Other receivables	12,117	13,800	88
Loans	8,742	9,025	97
Investments	246,240	249,794	99
Cash and cash equivalents	336,245	238,183	141
Total current assets	1,776,102	1,577,456	113
Total assets	2,827,951	2,621,636	108
Equity
Share capital	54,732	54,732	100
Treasury shares	-180,359	-163,491	110
Reserves	322,130	304,943	106
Retained earnings	2,135,766	1,990,167	107
Total equity	2,332,269	2,186,351	107
Liabilities
Provisions	127,018	125,667	101
Deferred income	2,521	2,585	98
Lease liabilities	2,381	2,181	109
Total non-current liabilities	131,920	130,433	101
Trade payables	199,920	171,183	117
Borrowings	37,616	17,805	211
Lease liabilities	1,159	1,118	104
Income tax payables	37,003	17,524	211
Contract liabilities	14,366	18,112	79
Other current liabilities	73,698	79,110	93
Total current liabilities	363,762	304,852	119
Total liabilities	495,682	435,285	114
Total equity and liabilities	2,827,951	2,621,636	108

Income statement of Krka, d. d., Novo mesto

€ thousand	Jan–Mar 2025	Jan–Mar 2024	Index
Revenue	511,063	458,696	111
– Revenue from contracts with customers	508,843	456,614	111
– Other revenue	2,220	2,082	107
Cost of goods sold	-215,805	-198,672	109
Gross profit	295,258	260,024	114
Other operating income	763	1,036	74
Selling and distribution expenses	-86,871	-76,991	113
– Whereof net impairments and write-offs of receivables	-3,397	16
R&D expenses	-49,083	-46,023	107
General and administrative expenses	-28,739	-26,485	109
Operating profit	131,328	111,561	118
Financial income	66,279	8,452	784
Financial expenses	-4,898	-4,127	119
Net financial result	61,381	4,325
Profit before tax	192,709	115,886	166
Income tax expense	-30,242	-18,061	167
Net profit	162,467	97,825	166
Basic earnings per share (€)*	5.30	3.17	167
Diluted earnings per share (€)**	5.30	3.17	167

* Net profit/Average number of shares issued in the period, excluding treasury shares

** All shares issued by the controlling company are ordinary shares, hence the diluted earnings per share ratio equalled basic earnings per share.

Statement of other comprehensive income of Krka, d. d., Novo mesto

€ thousand	Jan–Mar 2025	Jan–Mar 2024	Index
Net profit	162,467	97,825	166
Other comprehensive income for the period
Other comprehensive income that will not be reclassified to profit or loss at a future date
Change in fair value of financial assets	409	1,898	22
Deferred tax effect	-90	-418	22
Net other comprehensive income that will not be reclassified to profit or loss at a future date	319	1,480	22
Total other comprehensive income for the period (net of tax)	319	1,480	22
Total comprehensive income for the period (net of tax)	162,786	99,305	164

Statement of changes in equity of Krka, d. d., Novo mesto

			Reserves				Retained earnings
									Retained
			Reserves						earnings
			for					Other	from
	Share	Treasury	treasury	Share	Legal	Statutory	Fair value	profit	previous	Profit for	Total
€ thousand	capital	shares	shares	premium	reserves	reserves	reserve	reserves	periods	the period	equity
Balance at 1 Jan 2025	54,732	-163,491	163,491	105,897	14,990	30,000	-9,435	1,620,098	73,879	296,190	2,186,351
Net profit	0	0	0	0	0	0	0	0	0	162,467	162,467
Total other comprehensive income for the period (net of tax)	0	0	0	0	0	0	319	0	0	0	319
Total comprehensive income for the period (net of tax)	0	0	0	0	0	0	319	0	0	162,467	162,786
Transactions with owners, recognised in equity
Transfer of previous periods' profit to retained earnings	0	0	0	0	0	0	0	0	296,190	-296,190	0
Repurchase of treasury shares	0	-16,868	0	0	0	0	0	0	0	0	-16,868
Formation of reserves for treasury shares	0	0	16,868	0	0	0	0	0	0	-16,868	0
Total transactions with owners, recognised in equity	0	-16,868	16,868	0	0	0	0	0	296,190	-313,058	-16,868
Balance at 31 Mar 2025	54,732	-180,359	180,359	105,897	14,990	30,000	-9,116	1,620,098	370,069	145,599	2,332,269

			Reserves				Retained earnings
									Retained
			Reserves						earnings
	Share	Treasury	for treasury	Share	Legal	Statutory	Fair value	Other profit	from previous	Profit for	Total
€ thousand	capital	shares	shares	premium	reserves	reserves	reserve	reserves	periods	the period	equity
Balance at 1 Jan 2024	54,732	-138,489	138,489	105,897	14,990	30,000	1,105	1,544,595	101,381	280,558	2,133,258
Net profit	0	0	0	0	0	0	0	0	0	97,825	97,825
Total other comprehensive income for the period (net of tax)	0	0	0	0	0	0	1,480	0	0	0	1,480
Total comprehensive income for the period (net of tax)	0	0	0	0	0	0	1,480	0	0	97,825	99,305
Transactions with owners, recognised in equity
Transfer of previous periods' profit to retained earnings	0	0	0	0	0	0	0	0	280,558	-280,558	0
Repurchase of treasury shares	0	-6,569	0	0	0	0	0	0	0	0	-6,569
Formation of reserves for treasury shares	0	0	6,569	0	0	0	0	0	0	-6,569	0
Total transactions with owners, recognised in equity	0	-6,569	6,569	0	0	0	0	0	280,558	-287,127	-6,569
Balance at 31 Mar 2024	54,732	-145,058	145,058	105,897	14,990	30,000	2,585	1,544,595	381,939	91,256	2,225,994

Statement of cash flows of Krka,		d.	d., Novo mesto
----------------------------------	--	----	-------------------

€ thousand	Jan–Mar 2025	Jan–Mar 2024
CASH FLOWS FROM OPERATING ACTIVITIES
Net profit	162,467	97,825
Adjustments for:	55,101	33,789
– Amortisation/Depreciation	17,364	17,578
– Net foreign exchange gains and losses	816	-1,016
– Net write-offs and allowances for inventories	2,322	3,466
– Net impairments and write-offs of receivables	3,397	-16
– Investment income	-4,400	-8,820
– Investment expenses	3,828	1,994
– Income on financing activities	-2	0
– Interest expense and other financial expenses	1,534	2,542
– Income tax expense	30,242	18,061
Operating profit before changes in net current assets	217,568	131,614
Change in trade receivables	-104,712	-67,640
Change in inventories	-5,426	2,001
Change in trade payables	30,061	-2,952
Change in provisions	340	79
Change in deferred income	-64	-71
Change in other current liabilities	-5,412	-15,313
Income tax paid	-10,608	-15,949
Net cash flow from operating activities	121,747	31,769
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received	2,131	2,808
Proportionate profit of subsidiaries	604	718
Proceeds from sale of property, plant and equipment	54	537
Acquisition of property, plant and equipment	-19,109	-21,668
Acquisition of intangible assets	-1,224	-940
Investments in joint ventures	-9,234	0
Proceeds from non-current loans	567	30,462
Payments for non-current loans	-846	-95
Net payments for current loans	-276	-1,712
Proceeds from sale of non-current investments	20,252	29,764
Payments for acquiring non-current investments	-7	-7
Proceeds from sale of current investments	120,000	30,000
Payments for acquiring current investments	-138,591	-45,870
Proceeds from derivatives	13	14
Payments for derivatives	0	-1,584
Net cash flow from investing activities	-25,666	22,427
CASH FLOWS FROM FINANCING ACTIVITIES
Interest paid	-438	-1,359
Net proceeds from/payments for current borrowings	19,750	-21,225
Lease liabilities paid	-323	-297
Repurchase of treasury shares	-16,868	-6,569
Net cash flow from financing activities	2,121	-29,450
Net increase in cash and cash equivalents	98,202	24,746
Cash and cash equivalents at beginning of year	238,183	140,993
Effect of movements in exchange rates on cash held	-140	48
Closing balance of cash and cash equivalents	336,245	165,787

Costs by nature €380,498 thousand

€ thousand	Jan–Mar 2025	Jan–Mar 2024	Index
Cost of goods and materials	152,760	139,100	110
Cost of services	89,148	88,827	100
Employee benefit expenses	108,662	95,111	114
Amortisation and depreciation	17,364	17,578	99
Net write-offs and allowances for inventories	2,322	3,466	67
Net impairments and write-offs of receivables	3,397	-16
Other operating expenses	8,684	8,436	103
Total costs	382,337	352,502	108
Change in the value of inventories of finished products and work	-1,839	-4,331	42
in progress
Total	380,498	348,171	109

Employee benefits €108,662 thousand

€ thousand	Jan–Mar 2025	Jan–Mar 2024	Index
Gross wages and salaries and continued pay	83,686	73,730	114
Social security contributions	5,565	5,965	93
Pension insurance contributions	10,939	8,765	125
Post-employment benefits and other non-current employee benefits	1,730	1,358	127
Other employee benefit expenses	6,742	5,293	127
Total employee benefit expenses	108,662	95,111	114

Other operating expenses €8,684 thousand

€ thousand	Jan–Mar 2025	Jan–Mar 2024	Index
Grants and assistance for humanitarian and other purposes	266	342	78
Environmental protection expenditures	981	1,296	76
Other taxes and levies	5,782	5,217	111
Loss on sale and write-offs of property, plant and equipment and intangible assets	413	482	86
Other operating expenses	1,242	1,099	113
Total other operating expenses	8,684	8,436	103

Other levies include various taxes and levies on pharmaceuticals and fees paid to medical representatives in individual foreign countries for pursuing promotional activities.

Financial income and expenses

€ thousand	Jan–Mar 2025	Jan–Mar 2024	Index
Net foreign exchange gains	61,977	30
Interest income	2,207	2,513	88
Derivative income	13	3,378	0
– Realised revenue	13	14	93
– Change in fair value	0	3,364	0
Income from other financial instruments	1,450	2,531	57
– Realised revenue	1,772	772	230
– Change in fair value	-322	1,759
Income from dividends and other profit shares	632	0
– Profits of subsidiaries	632	0
Total financial income	66,279	8,452	784
Interest expense	-500	-1,438	35
– Interest paid	-476	-1,417	34
– Interest expense on lease liabilities	-24	-21	114
Derivative expenses	-3,364	-1,584	212
– Realised expenses	0	-1,584	0
– Change in fair value	-3,364	0
Other financial expenses	-1,034	-1,105	94
Total financial expenses	-4,898	-4,127	119
Net financial result	61,381	4,325

Income tax expense €30,242 thousand

Current income tax amounted to €30,083 thousand or 15.6% of profit before tax. Taking into account deferred tax of €153 thousand and other income-based taxes of €6,000, the tax expensed in the income statement totalled €30,242 thousand. The effective tax rate was 15.7%.

Property, plant and equipment €607,676 thousand

€ thousand	31 Mar 2025	31 Dec 2024	Index
Land	52,540	52,540	100
Buildings	227,540	226,846	100
Equipment	254,337	259,721	98
Property, plant and equipment being acquired	69,800	67,316	104
Right-of-use assets	3,459	3,205	108
Total property, plant and equipment	607,676	609,628	100

The value of property, plant and equipment accounted for 21% of the Krka balance sheet total. See the 'Investments' section in the business report for details on Krka's major investments.

Intangible assets €25,009 thousand

€ thousand	31 Mar 2025	31 Dec 2024	Index
Concessions, trademarks and licences	15,482	15,377	101
Other intangible assets	7,534	7,706	98
– Long-term deferred operating costs	133	150	89
– Development-related projects	4,234	4,389	96
– Emission coupons	3,167	3,167	100
Intangible assets being acquired	1,993	1,943	103
Total intangible assets	25,009	25,026	100

Intangible assets refer to software and registration documents for new pharmaceuticals.

Loans €32,389 thousand

€ thousand	31 Mar 2025	31 Dec 2024	Index
Non-current loans	23,647	23,401	101
– Loans to subsidiaries	11,100	11,100	100
– Loans to others	12,547	12,301	102
Current loans	8,742	9,025	97
– Portion of non-current loans maturing next year	1,930	1,897	102
– Loans to subsidiaries	6,477	6,850	95
– Loans to others	9	18	50
– Current interest receivables	326	260	125
Total loans	32,389	32,426	100

Investments €268,672 thousand

€ thousand	31 Mar 2025	31 Dec 2024	Index
Non-current investments	22,432	22,023	102
– Investments at fair value through OCI (equity instruments)	22,432	22,023	102
Current investments including derivatives	246,240	249,794	99
– Investments at fair value through profit or loss	244,151	224,110	109
– Investments at amortised cost (debt instruments)	0	20,231	0
– Derivatives	2,089	5,453	38
Total investments	268,672	271,817	99

Investments at fair value through OCI comprised €1,364 thousand of shares and interests in companies in Slovenia (end of 2024: €1,136 thousand), and €21,068 thousand of shares and interests in companies located outside Slovenia (end of 2024: €20,887 thousand).

The decrease in investments at amortised cost of €20,231 thousand occurred due to the maturity of government bonds. The increase in investments at fair value through profit or loss amounting to €20.041 thousand included acquisitions of treasury bills of €138,591 thousand, disposals of treasury bills due to their maturity totalling €120,000 thousand, realised financial income from disposal of treasury bills amounting to €1,772 thousand, and revaluation of treasury bills totalling -€322 thousand.

Inventories €551,292 thousand

€ thousand	31 Mar 2025	31 Dec 2024	Index
Material	242,459	252,100	96
Work in progress	108,028	111,987	96
Finished products	108,868	104,504	104
Merchandise	44,083	42,786	103
Advances for inventories	47,854	36,811	130
Total inventories	551,292	548,188	101

Trade and other receivables €633,542 thousand

€ thousand	31 Mar 2025	31 Dec 2024	Index
Current trade receivables	621,425	518,425	120
– Receivables due from subsidiaries	378,027	303,125	125
– Receivables due from customers other than Krka Group
companies	243,398	215,300	113
Current receivables due from others	12,117	13,800	88
Total trade and other receivables	633,542	532,225	119

Cash and cash equivalents €336,245 thousand

€ thousand	31 Mar 2025	31 Dec 2024	Index
Bank balances	336,245	238,183	141
Total cash and cash equivalents	336,245	238,183	141

Bank balances included a deposit of €301,493 thousand with a maturity of up to 90 days (31 December 2024: €204,438 thousand).

Equity €2,332,269 thousand

€ thousand	31 Mar 2025	31 Dec 2024	Index
Share capital	54,732	54,732	100
Treasury shares	-180,359	-163,491	110
Reserves:	322,130	304,943	106
– Reserves for treasury shares	180,359	163,491	110
– Share premium	105,897	105,897	100
– Legal reserves	14,990	14,990	100
– Statutory reserves	30,000	30,000	100
– Fair value reserve	-9,116	-9,435	97
Retained earnings	2,135,766	1,990,167	107
Total equity	2,332,269	2,186,351	107

€ thousand 31 Mar 2025 31 Dec 2024 Index Provisions for lawsuits 7,400 7,400 100 Provisions for post-employment benefits 99,336 98,515 101 Provisions for other non-current employee benefits 20,282 19,752 103 Total provisions 127,018 125,667 101

Deferred income €2,521 thousand

€ thousand 31 Mar 2025 31 Dec 2024 Index Grants received from the European Regional Development Fund and budget of the Republic of Slovenia intended for the production of pharmaceuticals in the new Notol 2 plant 559 572 98 Subsidy for acquisition of electric drive vehicles 1 1 100 Property, plant and equipment received free of charge 6 7 86 Emission coupons 10 10 100 Subsidy for purchase of joinery 88 88 100 Grants received from the European Regional Development Fund (Farma GRS) 1,365 1,407 ⁹⁷ Subsidy for upgrading trucks 6 6 100 Subsidy for electricity production from renewable energy installations ^{486 494 98} Total deferred income 2,521 2,585 98

Trade payables €199,920 thousand

€ thousand	31 Mar 2025	31 Dec 2024	Index
Current trade payables	199,920	171,183	117
Payables to subsidiaries	66,225	55,307	120
Payables to domestic suppliers	48,903	46,859	104
Payables to foreign suppliers	84,792	69,017	123
Total trade payables	199,920	171,183	117

Provisions €127,018 thousand

Borrowings €37,616 thousand

€ thousand	31 Mar 2025	31 Dec 2024	Index
Current borrowings	37,616	17,805	211
– Borrowings from subsidiaries	37,314	17,564	212
– Current interest payable	302	241	125
Total borrowings	37,616	17,805	211

Current contract liabilities €14,366 thousand

€ thousand 31 Mar 2025 31 Dec 2024 Index Refund liabilities 9,833 15,162 65 – Bonuses and volume rebates 9,833 15,162 65 Contract liabilities 4,533 2,950 154 – Advances from other customers 4,533 2,950 154 Total current contract liabilities 14,366 18,112 79

Other current liabilities €73,698 thousand

€ thousand 31 Mar 2025 31 Dec 2024 Index Payables to employees – gross salaries, other receipts and charges 69,736 75,684 ⁹² Other 3,962 3,426 116 Total other current liabilities 73,698 79,110 93

Contingent liabilities €16,194 thousand

€ thousand	31 Mar 2025	31 Dec 2024	Index
Guarantees issued	15,193	15,193	100
Other	1,001	819	122
Total contingent liabilities	16,194	16,012	101

Fair value

	31 Mar 2025		31 Dec 2024
	Carrying		Carrying
€ thousand	amount	Fair value	amount	Fair value
Non-current financial assets
Loans	23,647		23,401
Investments at fair value through OCI (equity instruments)	22,432	22,432	22,023	22,023
Current financial assets
Loans	8,742		9,025
Investments at fair value through profit or loss	244,151	244,151	224,110	224,110
Investments at amortised cost (debt instruments)	0		20,231
Derivatives	2,089	2,089	5,453	5,453
Trade receivables	621,425		518,425
Cash and cash equivalents	336,245		238,183
Non-current financial liabilities
Lease liabilities	-2,381		-2,181
Current financial liabilities
Borrowings	-37,616		-17,805
Lease liabilities	-1,159		-1,118
Payables to suppliers and subsidiaries excluding advances	-199,920		-171,183
Contract liabilities excluding advances	-9,833		-15,162
Other liabilities excluding amounts owed to the state, to employees, and advances	-2,929		-2,631
Total	1,004,893	268,672	850,771	251,586

In terms of fair value, assets and liabilities are classified into three levels:

• Level 1 Assets at market price;
• Level 2 Assets not classified within level 1 and the value of which is determined directly or indirectly based on observable market data;
• Level 3 Assets, the value of which cannot be determined using observable market data.

Assets at fair value

	31 Mar 2025			31 Dec 2024
€ thousand	Level 1	Level 2	Level 3	Total	Level 1	Level 2	Level 3	Total
Assets at fair value
Investments at fair value through OCI (equity instruments)	21,046	0	1,386	22,432	20,637	0	1,386	22,023
Investments at fair value through profit or loss	244,151	0	0	244,151	224,110	0	0	224,110
Derivatives	0	0	2,089	2,089	0	0	5,453	5,453
Total assets at fair value	265,197	0	3,475	268,672	244,747	0	6,839	251,586

STATEMENT OF COMPLIANCE

The Management Board of Krka, d. d., Novo mesto hereby states that the condensed financial statements of Krka and the condensed consolidated financial statements of the Krka Group for the period ended 31 March 2025 have been prepared so as to provide a true and fair view of the financial position and operating results of the Krka Group and Krka. The condensed financial statements for the first quarter of 2025 have been prepared using the same accounting policies as for the 2024 annual financial statements of the Krka Group and Krka.

The condensed financial statements for the period ended 31 March 2025 have been prepared pursuant to IAS 34 – Interim Financial Reporting and have to be read in conjunction with the annual financial statements prepared for the financial year ended 31 December 2024.

The Management Board is responsible for taking the measures required to preserve the assets of the Krka Group and Krka, and to prevent and detect fraud and other forms of misconduct.

The Management Board states that all transactions between Krka Group subsidiaries have been executed according to the concluded purchase contracts, using market prices of products and services. No significant business transactions were concluded with other related parties.

Novo mesto, 6 May 2025

Jože Colarič President of the Management Board and CEO

Dr Aleš Rotar Member of the Management Board

Dr Vinko Zupančič Member of the Management Board

David Bratož Member of the Management Board

Milena Kastelic Member of the Management Board – Worker Director