OREANDA-NEWS. July 20, 2010. OJSC “VEROPHARM” [RTS:VRPH, MICEX:VFRM] announces its unaudited financial results for the 1st Quarter 2010 in accordance with the International Financial Reporting Standards (IFRS).

Sales

Consolidated sales in 1Q 2010 increased by 5.5% and reached RUR 962.9 million (as compared with 912.8 million in 1Q 2009).

The Rx drugs sales accounted for 62% of total sales.[1]

The share of adhesive bandages in total sales was 21%.

OTC drugs share in total sales increased to 16% as compared with 11% in 1Q 2009;

Traditional drug sales decreased to 1% of total sales.

Veropharm sales as part of the Federal Reimbursement Program (FRP) came to RUR 55.5 million in 1Q 2010, accounting for 6% of the Company’s sales. By the results of 1Q 2009, FRP sales were RUR 17.5 million, or 2% of the Company’s total sales.[1]

Profit

In 1Q 2010 the Gross profit of Veropharm increased by 18.9% and reached RUR     701.8 million compared to RUR 590.3 million in 1Q 2009.

In 1Q 2010 EBITDA increased by 4.1% as compared to 1Q 2009 and reached RUR 198.7 million.

The 1Q 2010 Net profit decreased by 3.4% as compared to 1Q 2009 and reached RUR 121.2 million.

Debt

As of the end of 1Q 2010 the debt of OJSC “Veropharm” amounted to RUR 1 026.5 million that represents less than 20% of Company’s net assets.