OREANDA-NEWS. May 29, 2012. OJSC "VEROPHARM" [RTS:VRPH, MICEX:VFRM] announces its audited financial results for the year 2011 in accordance with the International Financial Reporting Standarts (IFRS).

SALES

Sales in 2011 made RUR 6,348 mln, which is 18% more than RUR 5,395 mln in 2010. The share of product segments in OJSC “Veropharm” sales is as follows:

Group of pharmaceutical products

Rx drugs sales amounted to RUR 4,455 mln, which is 18.4 % more than in the year 2010. The Rx drugs sales made 70.2% of total sales;

OTC drugs sales amounted to RUR 815 mln which is 15.6 % more than in the year 2010. The OTC drugs sales made 12.8% of total sales.

Traditional drugs sales amounted to RUR 29 mln which is 41.3 % less than in the year 2010. The traditional drugs sales made 0.5% of total sales.

Group of non-pharmaceutical products

Adhesive bandages and cosmetic products sales made RUR 1,049 mln which is 19.3% more than in the year 2010. The adhesive bandages and cosmetic products sales made 16.5% of total sales of the Company.

Under the Federal Reimbursement Program (FRP) Veropharm’s sales made RUR 136 mln according to the results of 2011, which corresponds to 2.1% of the Company’s total sales.

The Russian Federation is the main market and ensures 97.6% of the Company's sales. In 2011 the Company exported 2.4% of its products.

PROFIT

In 2011 the gross profit of OJSC “Veropharm” increased by 15.2% and made RUR 4,323 mln as compared with RUR 3,753* mln in 2010. The gross profit margin made 68.1% in 2011. The gross profit marginof the segments of OJSC “Veropharm”  is as stated:

Group of pharmaceutical products

Gross margin of Rx drugs made 69.3% in 2011 against 71.4% in 2010;

Gross margin of OTC drugs made 73.8% in 2011 against 75.6% in 2010;

Gross margin of traditional products made 43.7% against 54.1% in 2010.

Group of non-pharmaceutical products

Gross margin of adhesive bandages and cosmetic products increased from 57.9% in 2010 to 59.4% in 2011.

In 2011 EBITDA increased by 21.3% and amounted to RUR 2,007 mln as compared with RUR 1654* mln in 2010. EBITDA margin in 2011 increased from 30.7% (in 2010) to 31.6%.

The Net profit for the reporting period increased by 42.5% making RUR 1,780* mln against RUR 1,249* mln in 2010. Net profit margin in 2011 increased from 23.2% (in 2010) to 28.0%.

FACILITIES INVESTMENTS

In 2011 amount of investments assigned for modernization and equipment of the main production facilities of the Company made RUR 669 mln, which is 293% more than in 2010.

DEBT

At the end of 2011 the debt of OJSC “Veropharm” made RUR 483 mln that do not exceed 20 % of the Company’s net assets value.