OREANDA-NEWS. September 16, 2011. OJSC “VEROPHARM” [RTS:VRPH, MICEX:VFRM] announces its unaudited financial results for the 1st Half 2011 in accordance with the International Financial Reporting Standards (IFRS).

Sales

Consolidated sales in H1 2011 increased by 18.0% and reached RUR 3,154.8 million (as compared with RUR 2,673.2 million in H1 2010).

Group of pharmaceutical products

Rx drugs sales amounted to RUR 2,189.4 million, a 16.4% increase in comparison with H1 2010. The Rx drugs sales accounted for 69.4% of total finished goods sales.[1]

OTC drugs sales amounted to RUR 392.6 million, a 32.2% increase in comparison with H1 2010. The share of OTC drugs makes 12.5% of total finished goods sales.

Traditional drug sales amounted to RUR 13.7 million, which represents a 55.1% decrease as compared to H1 2010. The share of traditional drugs in total sales decreased to 0.4%

Group of non-pharmaceutical products

Adhesive bandages and cosmetic products sales came to RUR 559.1 million, a 20.3% increase in comparison with H1 2010. The share of adhesive bandages and cosmetic products in total finished goods sales of the Company was 17.7%.

Veropharm sales as part of the Federal Reimbursement Program (FRP) came to RUR 79,1 million, accounting for 2,5% of the Company’s total finished goods sales.[1]

In H1 2011  sales within  the Russian Federation provided  97% of the Company’s total finished goods sales. Export sales accounted for 3% compared to 2% in H1 2010.

Profit

In H1 2011 the Gross profit of Veropharm increased by 15.0% and reached RUR 2,253.4 million compared to RUR 1,959.8 million in H1 2010. Gross margin in H1 2011 decreased to 71.4% against 73.3% in H1 2010.

Gross margin of product segments in H1 2011 was the following:

Group of pharmaceutical products

Gross margin of Rx drugs amounted to 73.2% against 76.7% in H1 2010;

Gross margin of OTC drugs amounted to 73.3% against 75.0% in H1 2010;

Gross margin in the traditional products amounted to 32.1% against 54.5% in H1 2010.

Group of non-pharmaceutical products

Gross margin of adhesive bandages and cosmetic products increased and amounted 64.3% against 59.6% in H1 2010.

In H1 2011 EBITDA grew by 16.9% as compared to H1 2010 and reached RUR 1,072.4 million. EBITDA margin in H1 2011 compared to H1 2010 remained unchanged at 34% as compared to the same period in year before.

In H1 2011 Net profit increased by 20.7% as compared to H1 2010 and reached RUR 880.6 million. NI margin in H1 2011 increased by 0.6% and amounted to 27.9%.

Equity and liabilities

The Veropharm general shareholders meeting has decided to allocate in H1 RUR 190 million of 2010 dividends.

Debt

At the end of 1H 2011 Veropharm’s debt came to RUR 762.7 million, that represents less than 20% of net assets.

[1] – % as percentage of finished goods sales