OJSC «Veropharm» announces 2008 financial results (audited)22.04.2009 APRIL 22, 2008, MOSCOW — OJSC «VEROPHARM» [RTS:VRPH, MICEX:VFRM] announces 2008 financial results in accordance with the International Financial Reporting Standards(audited). Sales- Sales in 2008 grew by 24% and reached USD 172.9 mln in comparison with USD 139.5 mln. in 2007.
- The share of Rx drugs sales in 2008 increased to 66% as compared to 60% in 2007. The share of OTC drugs remained unchanged at 8% as compared to year before. Adhesive bandages sales share in finished goods remained unchanged at 18% as compared to year before. Portfolio of traditional drug sales also demonstrate tendency for a decrease of share in sales — the decrease from 14% to 8%.*
- The sales growth in 2008 in comparison with 2007 is attributed mostly to the following factors:
- Significant growth of the top-selling drugs:
Bilumid (Bycalutamid) — 102%
Cerepro (Holina Alfostserat) — 114%
Irunin (Itrakanazol) — 65%
Taytax (Docetaxel) — 97%
Xilen (Xylometazoline) — 37%
Slabilen (Sodium picosulfate) — 75%
Motilak (Domperidone) — 28%
Poludan (Poly-A & Poly-U) — 23% - Launch of new products in 2008, sales of which reached 3.5% of Company’s sales: Vero-Anastrozol (Anastrozol); Vero-Kladribin (Klaritromicine); B-Xicam (Meloxicam); Adepress, (Paroxetin); Spiramycin-Vero (Spiramycin); Siozam (Cytalopram); Vero-Amiodaron (Amiodaron).
- OJSC “Veropharm” sales in the 2008 FRP program amounted to USD 4.2 mln which makes 2% sales of the Company.*
Profit- In 2008 the gross profit of OJSC “Veropharm” increased by 31% and reached USD 113.9 mln compared to USD 86.7 mln in 2007. Gross margin increased to 65.9% as compared to 62.2% in 2007.
- Gross margin of finish goods in 2008 66.1% against 62.3% in 2007. The increase of the gross margin materialized in the following product segments: Rx drugs — from 71.% to 73.8%; OTC drugs — from 57.6% to 68.8%, adhesive bandages — from 55.5% to 56.0%. The gross margin in the traditional products — from 36.0% to 21.0%.
- In 2008 EBITDA increased by 24% and reached USD 52.5 mln which makes 30,4% of Company’s sales.
- The net profit grew by 33% to USD 36.9 mln which makes 21.3 % of Company’s sales (an increase of 1,4 % in comparison with 2007).
Gross profit and finished goods sales structure, OJSC “Veropharm”: | USD mln | 2008 | 2007 | Change, % |
|---|
| Rx | | | | | Sales | 113.5 | 83.3 | 36% | | Gross Profit | 83.7 | 59.3 | 41% | | Gross Margin, % | 73.8% | 71.2% | 2.6% | | OTC | | | | | Sales | 15.1 | 11.8 | 28% | | Gross Profit | 10.4 | 6.8 | 53% | | Gross Margin, % | 68.8% | 57.6% | 11.2% | | Adhesive bandages | | | | | Sales | 30.4 | 24.6 | 24% | | Gross Profit | 17.0 | 13.6 | 25% | | Gross Margin, % | 56.0% | 55.5% | 0.5% | | Traditional drugs | | | | | Sales | 13.4 | 19.4 | -31% | | Gross Profit | 2.8 | 7.0 | -60% | | Gross Margin, % | 21.0% | 36.0% | -15.0% |
|
| | Total, finished goods | | | | | Sales | 172.4 | 139.1 | 24% | | Gross Profit | 113.9 | 86.7 | 31% | | Gross Margin, % | 66.1% | 62.3% | 3.8% |
|
Facilities investments- The modernization and production facilities’ upgrade of the Company’s core production assets amounted to USD 5.0 mln.
Debt- As of the end of 2007 the debt of OJSC “Veropharm” amounted to USD 24.5 mln that represents less than 20 % of net assets.
* — according to management accounts. | 
