| Trade update for 9 months of 2008 (unaudited)20.10.2008 October 20, 2008, MOSCOW – OJSC Pharmacy Chain 36.6 [RTS:APTK; MICEX:RU14APTK1007] the leading Russian pharmaceutical retailer announces unaudited sales and operational results according to the management accounts. Group sales[1]:- Y-o-Y in 9M 2008 Group’s consolidated sales increased by 38,6% and reached US$ 820,7 million.
- Sales of the retail unit grew by 42,9% and reached US$ 655,6 million.
- Sales of the production unit Veropharm grew by 38.2% and reached US$128,4
- Sales of Early Learning Center grew by 110.5% to $3.3 million
- Other non-core businesses declined by 14,5% as the Company no longer consolidates the operation of European Medical Center.
| USD mln | Consolidated | Retail | Veropharm | ELC | Other |
|---|
| 9M 2008 | 820,7 | 655,6 | 128,4 | 3,3 | 33,1 | | 9M 2007 | 592,0 | 458,8 | 92,9 | 1,6 | 38,7 | | Change y-o-y | 38,6% | 42,9% | 38,2% | 110,5% | -14,5% |
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Retail:- As of the end of 9M 2008 Pharmacy Chain 36.6 operates 1168 stores in 29 regions of Russia.
- During Q3 2008 29 stores were opened organically and 52 were closed; 5 stores rebranded and 2 reformatted.
- As of the end of 9M 2008 Pharmacy Chain 36.6 operates 10 ELC stores, 13 stand-alone optical outlets and 22 additional optical departments within pharmacies.
- At the end of September, the Company successfully moved its National distribution center to a new location in Istrinsky region nearby Moscow and warehouse operations have been outsourced to a professional pharmaceutical logistics service provider, OOO «Pharmatsevticheskiye Terminaly». The center is now fully operational.
9M 2008 | Business Unit[2] | No of pharmacies | Share of Sales | Ave. retail space per
pharmacy, sq.m. |
|---|
| Moscow — Central | 395 | 43,3% | 73,7 | | Northwest | 27 | 2,73% | 67,7 | | South Urals | 264 | 17,4% | 56,6 | | South | 206 | 16,5% | 50,0 | | Volga | 130 | 8,9% | 62,2 | | North Urals | 105 | 9,5% | 54,0 | | Siberia | 68 | 4,4% | 53,1 |
|
| | Company Total: | 1168 | 100,0% | 61,4 |
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Operational data for the retail unit- During 9 months of 2008, 77.4 million purchases were made in Pharmacy Chain 36.6, which is 21% higher than in comparable period of 2007.
- In Q3 2008 average check across the network reached US$ 8.36, in Moscow US$ 10.09, an increase over the comparable period of the previous year 15.2% and 13.7% respectively.
- Average sales floor size at the end of Q3 is 61.4 sq meters, a decrease of 0.5% versus 2007.
Like-For-Like sales in comparable stores[3]As of the end of Q3 2008 the Company operates 535 comparable stores representing 55% of sales and 51% of traffic in the retail unit. The L-F-L sales growth in these stores in 9M 2008 reached 17% as compared to 9M 2007 while the traffic decreased by 7%: | Business Unit | Number of
comparable stores | L-F-L sales groath
USD | Average check
growth, USD |
|---|
| Moscow — Central | 195 | 19% | 20% | | Northwest | 19 | 42% | 38% | | South Urals | 168 | 13% | 30% | | South | 58 | 15% | 30% | | Volga | 81 | 14% | 28% | | North Urals | 1 | 11% | 35% | | Siberia | 13 | 25% | 40% |
|
| | Total: | 535 | 17% | 27% |
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[1] Hereinafter – these financial indicators may vary from the consolidated financial reporting prepared in accordance with IFRS.
[2] Due to organizational changes Northwest is now managed by Moscow-Central. In addition, Urals is broken into two units: North Urals and South Urals.
[3] Comparable stores are defined as stores:
- Opened or acquired 24 months from the current reporting period, and
- Neither rebranded nor reformatted or somehow significantly changed during last 24 months, and
- Not closed in the current reporting period.
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