OREANDA-NEWS. September 14, 2010. OJSC "VEROPHARM" [RTS:VRPH, MICEX:VFRM] announces its unaudited financial results for the 1st Half 2010 in accordance with the International Financial Reporting Standarts (IFRS).

Sales

Consolidated sales in H1 2010 reached RUR 2,673.2 mln., a 16.2% increase as compared to the same period in 2009.

The share of Rx drugs sales in H1 2010 increased to 70% as compared to 69% in H1 2009. The share of Adhesive bandages in finished goods decreased from 19% to 17% in H1 2010.The share of OTC drugs increased from 9% to 12% in H1 2010. Portfolio of traditional drug sales as before demonstrated tendency for a decrease of share in sales – the decrease from 3% to 1%.

Veropharm sales as part of the Federal Reimbursement Program (FRP) came to RUR 105.9 million in H1 2010, accounting for 4.0% of the Company’s total finished goods sales.

Sales within the Russian Federation accounted for 98.5% of the Company’s total finished goods sales in H1 2010.

Profit

In H1 2010 the Gross profit of Veropharm reached RUR 1,959.8 mln., a 23.8% increase as compared to the same period in 2009. Gross margin accounted for 73.3%, an increase of 4.5 % in comparison with H1 2009.

The increase of the gross margin materialized in the all product segments: Rx drugs - from 73.7% to 76.7%; adhesive bandages – from 58.6% to 59.4%; OTC drugs – from 68.2% to 75.0%, traditional products - from 16.8% to 54.5%.

In H1 2010 EBITDA increased by 20.9% as compared to H1 2009 and reached RUR 917.7 mln. which makes 34.3% of Company’s total sales.

In H1 2010 Net profit increased by 21.8% to RUR 729.4 mln. which makes 27.3% of Company’s total sales.

Debt

As of the end of H1 2010 the debt of OJSC “Veropharm” amounted to RUR 774.7 mln. that represents less than 20% of Company’s net assets.