OJSC “VEROPHARM” announces financial results for the first nine months of 2009 year (unaudited)

APRIL 07, 2010, MOSCOW — OJSC «VEROPHARM» [RTS:VRPH, MICEX:VFRM] announces its unaudited financial results for the first nine months of 2009 year in accordance with the International Financial Reporting Standarts (IFRS).

Sales

• Consolidated sales in 9M 2009 grew by 4,5% and reached RUR 3 215,3 mln. in comparison with RUR 3 076,7 mln. in 9M 2008.
• The share of Rx drugs sales in 9M 2009 increased to 70% as compared to 64% in 9M 2008. The share of adhesive bandages decreased to 17% as compared to 19% the same period in year before. The share of OTC drugs increased to 11% as compared to 9% in 9M 2008. Portfolio of traditional drug sales as before demonstrate tendency for a decrease of share in sales – the decrease from 8% to 2%.
• Veropharm sales as part of Federal Reimbursement Program (FRP) came to RUR 45,8 mln. in 9M 2009, accounting for 1,5% of the Company’s total sales. By the results of 9M 2008, FRP sales were RUR 84,4 mln., or 2,7% of the Company’s total sales.
• Sales within the Russian Federation accounted for 97% of the Company’s total finished goods sales in 9M 2009 against 96% as the same period in year before.

Profit

• In 9M 2009 the Gross Profit of Veropharm increased by 6,1% and reached RUR 2 135,2 mln. compared to RUR 2 012,8 mln in 9M 2008. Gross margin increased to 66,4% as compared to 65,4% in 9M 2008.
• The increase of the Gross Margin materialized in the following product segments: Rx drugs — from 73,4% to 73,7%; OTC drugs — from 64,4% to 64,7%. The gross margin decreased in the following segments: the traditional products from 25,6% to 21,3%, adhesive bandages – from 55,7% to 49,8%.
• In 9M 2009 EBITDA increased by 2,7% as compared to 9M 2008 and reached RUR 973,2 mln. which makes 30,3% of Company’s total sales.
• The 9M 2009 Net Profit grew by 15,0% to RUR 730,3 mln. which makes 22,7 % of Company’s total sales (an increase of 2,1 %  in comparison with 9M 2008).

Debt

As of the end of 9M 2009 the debt of OJSC “Veropharm” amounted to RUR 775,0 mln. that represents less than 20% of Company’s net assets.

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Press-release