Pharmacy Chain 36.6 announces preliminary results for 200628.03.2007 MARCH 28, 2007, MOSCOW – Pharmacy Chain 36.6 [MICEX: RU14APTK1007; RTS: APTK] is announcing its preliminary sales and operational results for 2006 according to management reports. Sales- Consolidated sales in 2006 totaled USD 525 million, which is 72% more than in the previous year.
- Sales in the pharmacy business totaled USD 385 million, representing 89.5% growth over 2005.
- In 2006 Veropharm sales grew 27% year on year and reached USD 101 million.
- Sales in the medical services sector totaled USD 21 million, of which approximately $10 million will be consolidated under the Company’s reporting for 2006.
Storecount- At the end of 2006 Pharmacy Chain 36.6 included 838 pharmacies situated in 26 regions throughout Russia.
- In 2006 Pharmacy Chain 36.6 acquired 18 pharmacy chains including a total of 352 pharmacies. The pro forma revenues of the acquired pharmacy chains totaled USD 183 million. The coefficient of the consolidated sales for the acquired chains in the Company’s reporting for 2006 is 0.37.
- Throughout the year the Company organically opened 75 pharmacies, rebranded 50 pharmacies and closed 34 pharmacies.
- As of the end of 2006, Pharmacy Chain 36.6 managed 7 separate eyewear stores and 22 optics departments were situated within the Company’s pharmacies.
Operational results- The acquisition of regional pharmacy chains reduced the average floor space of the Company’s pharmacies in 2006 by 34% to 64 square meters.
- The sales volume per square meter of floor space at pharmacies that have been operating for over a year reached USD 10,700, representing an increase of 41% year on year; the sales volume per square meter in Moscow grew 21% and reached USD 10,800; sales per square meter in regional pharmacies more than doubled, reaching USD 7,600.
- Throughout 2006, a total of 63.6 million purchases took place at the Company’s pharmacies, 86% more than in 2005. The average receipt at pharmacies that have been operating for over a year grew by 34% and totaled USD 7.9; at the Company’s Moscow pharmacies the average receipt was USD 10.2, up 28%; the average receipt in regional pharmacies was USD 4.8, up 51%.
- Growth in sales at pharmacies that were opened or acquired prior to January 1, 2005 (like-for-like sales) totaled 25.5%.
Investments and debt- The investment outlays of Pharmacy Chain 36.6 in 2006 totaled USD 189 million.
- The debts of Pharmacy Chain 36.6 at the end of 2006 totaled USD 252 million, including Veropharm’s debts totaling USD 18.6 million.
Commentary: Artem Bektemirov, CEO, Pharmacy Chain 36.6: “We have succeeded in preserving our high rate of growth and doubled our number of pharmacies for a third consecutive year. In order to increase the effectiveness of the management of the retail business, we launched a program in 2006 for implementing a modern ERP system. The scales of the retail operations and growth in the sales of exclusive assortments have made it economical to create a modern logistics system. This project will be rolled out over the next three years and will provide a distinct advantage for the Company. This year we are planning to pay greater attention to organic growth in the regions were the chain has a considerable presence. At the same time, acquisitions will remain the main source of growth in the number of pharmacies of the chain nationwide.” The publication of the 2006 results of Pharmacy Chain 36.6 according to International Financial Reporting Standards is planned for near the end of the first half of 2007 upon completion of an external audit. | 
