| Pharmacy Chain 36.6 announces Q2 2009 trade update (unaudited)30.07.2009 July 30, 2009, 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 Group’s consolidated sales decreased by 13,5% in ruble terms and reached RUR 5 775.2 mln versus RUR 6 673.3 mln in Q2 2008.
- Y-o-Y Pharmacy Retail Sales decreased by 21.9% in ruble terms and reached RUR 4 034.9 mln versus RUR 5 164.5 mln in Q2 2008.
- Y-o-Y Sales of finished goods of the production unit Veropharm increased by 25.6% in ruble terms and reached RUR 1 545.0 mln versus RUR 1 230.0 mln in Q2 2008.
- Y-o-Y other non-core businesses decreased by 29.9% in ruble terms as the Company no longer consolidates the operation of European Medical Center.
| Sales, mln | Consolidated | Retail | Veropharm | Other |
|---|
| RUR | USD | RUR | USD | RUR | USD | RUR | USD |
|---|
| Q2 2009 | 5 775,2 | 178,6 | 4 034,9 | 125,1 | 1 545,0 | 47,5 | 195,3 | 6,0 | | Q2 2008 | 6 673,3 | 283,8 | 5 164,5 | 220,1 | 1 230,0 | 51,8 | 278,8 | 11,9 | Change y-o-y | -13,5% | -37,1% | -21,9% | -43,2% | 25,6% | -8,3% | -29,9% | -48,6% |
|
| | 1H 2009 | 11 628,2 | 350,9 | 8 804,4 | 265,4 | 2 457,8 | 74,3 | 366,0 | 11,2 | | 1H 2008 | 13 386,0 | 563,8 | 10 660,6 | 449,7 | 2 072,0 | 86,5 | 653,4 | 27,6 | | Change y-o-y | -13,1% | -37,8% | -17,4% | -41,0% | 18,6% | -14,0% | -44,0% | -59,4% |
|
Retail- As of the end of Q2 2009 Pharmacy Chain 36.6 operated 1036 stores in 29 regions of Russia.
- During Q2 2009 6 stores were opened organically and 54 were closed (no stores were rebranded or reformatted).
- As of the end of Q2 2009 Pharmacy Chain 36.6 operated 9 ELC stores, 12 stand-alone optical outlets and 19 additional optical departments within pharmacies.
As of the end of Q2 2009: | Business Unit | No. of pharmacies | Share of Sales | Ave. retail space per
pharmacy, sq.m. |
|---|
| Moscow — Central | 350 | 48,2% | 76,0 | | Northwest | 24 | 2,8% | 67,8 | | South Urals | 232 | 16,3% | 57,5 | | South | 185 | 15,2% | 51,8 | | Volga | 127 | 8,9% | 62,5 | | North Urals | 86 | 7,2% | 53,0 | | Siberia | 56 | 4,2% | 53,3 |
|
| | Company Total: | 1036 | 100,0% | 62,8 |
|
Operational data for the retail unit- In Q2 2009 17.8 million purchases were made, which is 30.1% lower than in Q2 2008.
- During 1H 2009 38.9 million purchases were made in Pharmacy Chain 36.6, which is 26.6% lower than in 1H 2008.
- In Q2 2009 average check across the network stood at RUR 235 (USD 7.29), in Moscow – RUR 344 (USD 10.7), an increase of 14.1% and 16.2% respectively in ruble terms and a decrease of 16.0% and 14.4% respectively in dollar terms.
- In 1H 2009 average check across the network stood at RUR 235 (USD 7.09), in Moscow – RUR 338 (USD 10.2), an increase of 16.3% and 17.0% respectively in ruble terms and a decrease of 16.0% and 15.7% respectively in dollar terms.
- Average sales floor size in Q2 2009 is 62.8 sq meters, an increase of 2.6% versus Q2 2008.
Private label- In Q2 2009 the private label sales reached RUR 279.8 mln (USD 8.7 mln) which represents a 10.7% growth in dollar terms and 50.9% growth in ruble terms compared to Q2 2008.
- In 1H 2009 the private label sales reached RUR 559.3 mln (USD 16.9 mln) which represents a 25.6% growth in dollar terms and 73.4% growth in ruble terms compared to 1H 2008.
- In Q2 2009 the share of private label sales reached 6.9%.
- The number of SKUs has increased by 29.1% from 537 at the end of Q2 2008 to 693 by the end of Q2 2009.
Like-for-like sales in comparable stores[2]As of the end of Q2 2009 the Company operates 672 comparable stores representing 74.0% of sales and 69.3% of traffic in the retail unit in Q2 2009. L-F-L sales reduction in these stores reached 16% as compared to Q2 2008 (in ruble terms) and 38% decrease (in dollar terms) while traffic decreased by 25%: | Business unit | Number of
comparable
stores | L-F-L sales
growth,
RUR | L-F-L sales
growth,
USD | Average
check
growth, RUR | Average
check
growth, USD |
|---|
| Moscow — Central | 229 | -8% | -33% | 13% | -17% | | Northwest | 21 | -12% | -35% | 4% | -24% | | South Urals | 179 | -24% | -44% | 8% | -21% | | South | 90 | -25% | -45% | 7% | -21% | | Volga | 91 | -22% | -43% | 10% | -19% | | North Urals | 67 | -21% | -42% | 12% | -18% | | Siberia | 16 | -15% | -37% | 12% | -17% |
|
| | Total: | 672 | -16% | -38% | 13% | -17% |
|
In 1H 2009 L-f-L sales represented 72.9% of total sales and 68.1% of traffic in the retail unit in 1H 2009. L-F-L sales reduction reached 12% as compared to 1H 2008 (in ruble terms) and 36% decrease (in dollar terms) while traffic in 1H 2009 decreased by 23%: | Business unit | Number of
comparable
stores | L-F-L sales
growth,
RUR | L-F-L sales
growth,
USD | Average
check
growth, RUR | Average
check
growth, USD |
|---|
| Moscow — Central | 229 | -5% | -31% | 15% | -17% | | Northwest | 21 | -6% | -32% | 9% | -21% | | South Urals | 179 | -19% | -41% | 10% | -20% | | South | 90 | -19% | -41% | 11% | -19% | | Volga | 91 | -16% | -39% | 12% | -19% | | North Urals | 67 | -20% | -42% | 12% | -19% | | Siberia | 16 | -8% | -34% | 17% | -15% |
|
| | Total: | 672 | -12% | -36% | 15% | -17% |
|
DebtAccording to the management accounts as of the end of Q2 2009 the total Group’s financial debt (in ruble terms) equaled to RUR 4 639.3 mln (USD 149.5 mln) of which Retail debt is RUR 3 835.5 mln (USD 123.6 mln) and Veropharm debt is RUR 803.8 mln (USD 25.9 mln). [1] Hereinafter – these financial indicators may vary from the consolidated financial reporting prepared in accordance with IFRS.
[2] Comparable stores are defined as stores: - Opened or acquired 24 months from the current reporting period, and
- Neither rebranded nor reformatted or significantly changed during the last 24 months, and
- Not closed in the current reporting period.
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