OREANDA-NEWS. July 03, 2012. OJSC "VEROPHARM" [RTS:VRPH, MICEX:VFRM] announces its audited financial results for the first quarter of 2012 in accordance with the International Financial Reporting Standarts (IFRS).

SALES

Sales for the first quarter of 2012 made RUR 1,632.8 mln, which is 18% more than RUR 1,382.9 mln for the first quarter of 2011. The share of product segments in OJSC “Veropharm” sales is as follows:

Group of pharmaceutical products

Rx drugs sales amounted to RUR 1,123.6 mln, which is 16.8 % more than for the same period of 2011. The Rx drugs sales made 68.8% of total sales;

OTC drugs sales amounted to RUR 244.1 mln which is 27.1 % more than for the first quarter of 2011. The OTC drugs sales made 15.0% of total sales.

Traditional drugs sales amounted to RUR 3.1 mln which is 54.3 % less than for the same period of 2011. The traditional drugs sales made 0.2% of total sales.

Group of non-pharmaceutical products

Adhesive bandages and cosmetic products sales made RUR 262 mln which is 18.1% more than for the first quarter of 2011. The adhesive bandages and cosmetic products sales made 16.0% of total sales of the Company.

Under the Federal Reimbursement Program (FRP) Veropharm’s sales made RUR 23 mln according to the results of the first quarter of 2012 which corresponds to 1.4% of the Company’s total sales.

The Russian Federation is the main market and ensures 98.9% of the Company's sales. For the first quarter of 2012 the Company exported 1.1% of its products.

PROFIT

In the first quarter of 2012 the gross profit of OJSC “Veropharm” increased by 16.4% and made RUR 1,116.9 mln as compared with RUR 959.4 mln in the first quarter of 2011. The gross profit margin made 68.4% in the first quarter of 2012. The gross profit margin of the segments of OJSC “Veropharm” is as stated:

Group of pharmaceutical products

Gross margin of Rx drugs made 68.9% in the first quarter of 2012 against 69.9% in the first quarter of 2011;

Gross margin of OTC drugs made 70.6% for the first quarter of 2012 against 75.9% in the first quarter of 2011;

Gross margin of traditional products made 34% in the first quarter of 2012 against 44.8% in the first quarter of 2011.

Group of non-pharmaceutical products

Gross margin of adhesive bandages and cosmetic products increased from 63.7% in the first quarter of 2011 to 64.7% in the first quarter of 2012.

For the first quarter of 2012 EBITDA increased by 20.2% and amounted to RUR 499.5 mln as compared with RUR 415.5 mln in the first quarter of 2011. EBITDA margin increased from 30.0% in the first quarter of 2011 to 30.6% in the first quarter of 2012.

The Net profit for the reporting period increased by 46.1% amounting to RUR 494.3 mln against RUR 338.3 mln in the first quarter of 2011. Net profit margin increased from 24.5% in the first quarter of 2011 to 30.3% in the first quarter of 2012.

FACILITIES INVESTMENTS

In the first quarter of 2012 amount of investments assigned for modernization and equipment of the main production facilities of the Company made RUR 137 mln, which is 189% more than in the first quarter of 2011.

DEBT

At the end of the first quarter of 2012 the debt of OJSC “Veropharm” made RUR 704.4 mln that do not exceed 20% of the Company’s net assets value.