Russia's Veropharm boosts IFRS earnings 10% in Q2
MOSCOW. Aug 26 (Interfax) - Russia's Veropharm increased net profit under International Financial Reporting Standards (IFRS) by 10% to $14.4 million in the second quarter of 2009 compared to the same period of 2008, the company said in a statement.
Net profit totaled $3.7 million in the first quarter of 2009, which means earnings declined 6.7% to $18.1 million in the first half of 2009 compared to the same period of 2008.
Analysts from investment companies and banks polled by Interfax had predicted Veropharm would see net profit decline 23% to $10.12 million in the quarter.
Sales revenue fell 19.5% to $69.6 million in the first half of 2009. EBITDA (earnings before interest, taxes, depreciation and amortization) declined 19.6% to $23 million, gross profit fell 18.4% to $47.9 million and the gross profit margin totaled 68.8% compared to 67.9% in the first half of 2008.
Sales revenue declined 17.5% to $42.7 million in the second quarter, while EBITDA fell 11.5% to $17.4 million. Analysts had predicted sales revenue would total $47.5 million in the second quarter and EBITDA would be $14.96 million.
Prescription medicines accounted for 69% of the company's sales in the half compared to 65% a year earlier. The share of non-prescription medicines increased to 9% from 8% in the period. Traditional medicines continue to lose their share of overall sales, declining to 3% from 7% in the first half of 2009.
The company's sales as part of the government's additional medicinal provisions program totaled $2 million in the half, or 2.9% of total sales. Sales via the program totaled $3.3 million in the first half of 2008, or 3.8% of total sales.
Veropharm had debt of $27.6 million at the end of the second quarter compared to $24.3 million at the end of the first quarter.