OREANDA-NEWS. May 19, 2010. OJSC "VEROPHARM" [RTS:VRPH, MICEX:VFRM] announces its audited financial results for the 2009 in accordance with the International Financial Reporting Standarts (IFRS).

Sales

Sales in 2009 increased by 2% and reached RUR 4,395.2 mln in comparison with RUR 4,301.3 mln in 2008.

The share of product segments in OJSC “Veropharm” sales:

The share of Rx drugs sales in 2009 increased to 69% as compared to 66% in 2008;

Adhesive bandages sales share slightly decreased and amounted 17% against 18% in 2008;

The share of OTC drugs increased in 2009 to 12% as compared to 9% in 2008;

Portfolio of traditional drug sales as before demonstrate tendency for a decrease of share in sales – the decrease from 7% to 2%.

Veropharm sales as part of the Federal Reimbursement Program (FRP) came to RUR 53.2 million in 2009, accounting for 1.2% of the Company’s total finished goods sales.* By the results in 2008, FRP sales were RUR 105.6 million, or 2.4% of the Company’s total finished goods sales. Sales of Bilumid, Geptor and Paclitaxel through FRP accounted for 54% of the Veropharm total FRP sales in 2009.

Profit

In 2009 the gross profit of OJSC “Veropharm” increased by 4% and reached RUR 2,936.1 mln compared to RUR 2,836.5 mln in 2008.

Gross margin in 2009 increased to 66.8% as compared to 65.9% in 2008.

In 2009 EBITDA increased by 6% and reached RUR 1,389.0 mln which makes 31.6% of Company’s sales (an increase of 1.3% in comparison with 2008).

The net profit increased by 20% to RUR 1,107.6 mln which makes 25.2% of Company’s sales (an increase of 3.7 % in comparison with 2008).

Facilities investments

In 2009 the modernization and production facilities’ upgrade of the Company’s core production assets amounted to RUR 79.0 mln.

Debt

As of the end of 2009 the debt of OJSC “Veropharm” amounted to RUR 981.5 mln that represents less than 20 % of net assets.

* - according to management accounts