OREANDA-NEWS. November 28, 2007. OAO Pharmacy Chain 36.6 [RTS:APTK; MICEX:RU14APTK1007] announced its non-audited consolidated financial results for nine months of 2007 in accordance with the International Financial Reporting Standards (IFRS).

Sales:
Consolidated sales in 9M 2007 increased by 69.8% year-on-year and reached US$590.6 million.
Sales in the retail segment increased by 82.9% year-on-year in 9M 2007 and reached US$457.5 million. The significant sales growth in the retail segment is primarily a result of the large number of pharmacies acquired in 2006. The sales in pharmacies that have been opened or acquired prior to 1 January 2006 (like-for-like sales, US$) grew by 28.9%.
Veropharm's sales reached US$92.1 million, up 30.2% during 9М 2007, primarily as a result of strong growth in sales of the prescription drugs segment.
Sales of the European Medical Center (EMC) totaled US$19.1 million in 9M 2007.

Profit:
Consolidated gross profit in 9M 2007 grew by 60.7% and reached US$195.7 million. Expansion of the pharmacy chain into the regions led to a decrease in the gross profit margin in the retail segment to 27.7%.
Consolidated EBITDA increased by 4.0% and reached US$12.8 million.  EBITDA for the production business grew by 29.0% and reached US$24.5 million. In the retail sector EBITDA decreased to US$  -12.8 million.  EBITDA for EMC totaled US$4.5 million.
The Company's net losses in 9M 2007 totaled US$41.9 million. Net profit of US$41.5 mln in 9M 2006 was primarily attributed to Veropharm's IPO.
The decrease in the Company’s profit figures is caused by difficulties in ensuring uninterrupted supply of goods to the retail chain, in direct deliveries from manufacturers, connected with temporary problems with the ERP system implementation resulting in decrease of sales and profitability in Moscow and Moscow region. 

Debt
Net debt as of the end of 9M 2007 amounted to US$300.6 million.
As of 12th November 2007, net debt decreased to US$266.4 million.