Veropharm announces Q1 2007 financial results31.07.2007 JULY 31, 2007, MOSCOW – OAO «VEROPHARM» [RTS:VRPH, MICEX:VRFM] announces non-audited financial results for the first quarter of 2007 in accordance with the International Financial Reporting Standards (IFRS). Sales- Sales in Q1 2007 were up 22.5% year-on-year and totaled US$24.1 million.
- The sales volume of finished products in Q1 2007 totaled US$23.7 million. *
- The share of prescription drugs in VEROPHARM’s sales increased in Q1 2007 to 52.6%, compared to 49.6% in Q1 2006. The share of adhesive bandages in total sales decreased to 18.5%, down from 23.7% a year earlier. Non-prescription (OTC) medications increased their share to 10.1%, up from 8.3% in Q1 2006. The portfolio of VEROPHARM’s traditional medications saw an insubstantial change, rising from 18.4% to 18.8%.*
- VEROPHARM’s sales as part of the Federal Reimbursement Program (DLO) totaled $1.0 million in Q1 2007, which represented 4.2% of the Company’s sales.
Profits - VEROPHARM’s gross profits in Q1 2007 grew 32.2% year-on-year and reached $15.4 million. The gross profit margin grew from 59.1% a year earlier to 63.8%.
- The gross profit margin for delivery of finished products increased from 61.0% in Q1 2006 to 63.8% in 2007.
- Results from Q1 2007 demonstrated year-on-year growth in gross profit margin in the following segments: OTC medications – from 52.3% to 59.0%; and traditional medications – from 30.7% to 41.4%. The gross profit margin remained practically unchanged for RX drugs – from 74.9% in Q1 2006 to 74.8% in Q1 2007. The gross profit margin for adhesive bandages decreased from 58.4% to 57.9%.
- The Company’s EBITDA increased by 31.2% year-on-year, reaching US$7.1 million. The EBITDA margin for Q1 2007 amounted to 29.3%.
- VEROPHARM’s net profit in Q1 2007 was up 77.5% year-on-year and totaled US$5.5 million.
Debt- VEROPHARM’s debt at the end of Q1 2007 totaled US$20.6 million.
* hereinafter financials are as per OAO VEROPHARM management accounts. | 
