Veropharm announces financial results for 9M 2007

NOVEMBER 26, 2007, MOSCOW – OAO VEROPHARM [RTS:VRPH, MICEX:VRFM] announces its unaudited financial results for 9M 2007 in accordance with the International Financial Reporting Standards (IFRS).

Sales

• Sales for 9M 2007 were up 30.2% year-on-year and totaled US$92.1 million.
• The sales volume of finished products for 9M 2007 totaled US$90.1 million.*
• The share of prescription drugs in VEROPHARM’s sales increased for 9M 2007 to 55.3%, compared to 52.7% for 9M 2006. The share of adhesive bandages in sales volume of finished products decreased to 19.4%, down from 22.2% a year earlier. Non-prescription (OTC) medications share remained the same 8.6%. The share of VEROPHARM’s traditional medications portfolio rose from 16.5% to 16.7%.*
• VEROPHARM’s sales as part of the Federal Reimbursement Program (DLO) totaled US$4.3 million for 9M 2007, which represented 4.8% of the Company’s finished goods sales. The DLO Program sales for 9M 2006 totaled US$5.2 million (7.6% of finished goods sales).

Profits

• VEROPHARM’s gross profits for 9M 2007 grew 33.2% year-on-year and reached US$55.4 million. The gross profit margin grew from 58.8% a year earlier to 60.1%.
• The gross profit margin for delivery of finished products remained almost at the same level and totaled 62,7% for 9M 2007.  The gross profit margin for delivery of finished products for 9M 2006 was 62,8%.
• The gross profit margin for RX drugs for 9M 2007 remained the same and totaled 74,3%.   Results from 9M 2007 demonstrated year-on-year growth in gross profit margin in the following segments: OTC medications – from 54,1% to 56,1%; traditional drugs — from 35,2% to 35,8%. The gross profit margin for adhesive bandages decreased from 59,1% to 55,7%.*
• The Company’s EBITDA increased by 29.0% year-on-year, reaching US$24.5 million. The EBITDA margin for 9M 2007 amounted to 26.7%.
• VEROPHARM’s net profit for 9M 2007 was up 33.4% year-on-year and totaled US$16.0 million.  

Debt

• VEROPHARM’s debt at the end of 9M 2007 totaled US$24.0 million.

* hereinafter financials are as per OAO VEROPHARM management accounts.

KEY FINANCIAL INDICATORS FOR 9M 2007

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(PDF, 133,27 ÊÁ)	Press-release