OREANDA-NEWS. August 20, 2012. OJSC Pharmacy Chain 36.6 [RTS:APTK; MICEX:RU14APTK1007], the leading Russian pharmaceutical retailer, announces unaudited retail sales and operational results for 2Q and 1H 2012 according to the management accounts.

SALES:

Pharmacy Retail Sales increased by 5% in 2Q 2012 and reached RUR 3 702 mln.;

In 1H 2012 Pharmacy Retail Sales increased by 3% and reached RUR 7 448 mln.;

As of the end of 2Q 2012 Pharmacy Chain 36.6 operated 935 stores in 29 regions of Russia;

During 1H 2012 37 stores were opened organically and 107 were closed;

As of the 30th of June 2012 Pharmacy Chain 36.6 operated 9 stand-alone optical outlets and 24 additional optical departments within pharmacies.

Tabl.1. ‘Pharmacy retail sales’

 

 

 

 

 1H 2012

 1H 2011

change, %

2Q 2012

2Q 2011

change, %

Number of stores

    935  

   983  

-

-

-

-

Sales, mln RUR

  7 448  

  7 225  

7%

 3 702  

 3 517  

11%

Moscow

   3 713  

  3 446  

8%

  1 874  

  1 708  

10%

Regions

   3 734  

  3 779  

-1%

  1 827  

  1 809  

1%

Traffic
mln. tickets

     23  

    26  

-12%

   12  

   13  

-8%

Moscow

      9  

    10  

-8%

     4  

     5  

-4%

Regions

     14  

    17  

-15%

     7  

     8  

-10%

OPERATIONAL DATA FOR THE RETAIL SEGMENT:

In November 2011 a new brand of pharmacy stores ‘LEKO’ was launched. The main distinction of ‘LEKO’ stores is more extensive assortment of pharmaceuticals at lower prices. By the end of 1H 2012 194 stores have been converted to ‘Leko’ format;

Sales growth at LEKO reached 21% in 2Q 2012, in 1H 2012 sales at ‘LEKO increased by 8%;

Consumer traffic in 2Q 2012 increased by 12% at ‘LEKO’ stores, this is a clear sign that the traffic decrease recorded in 2H 2011 has been fixed up. In June 2012 traffic at LEKO stores increased by 16%, as a result the sales increased by 25% comparing to June 2011. Average effect on sales growth since the pharmacy conversion to ‘LEKO’ equals to 34% versus 36,3 stores dynamic.

Like-for-like[1] sales in 2Q 2012 increased by 2% versus the same period in 2011, average ticket in 1H 2012 increased by 17% and reached RUR 375.

As of the end of 2Q 2012 Pharmacy Chain 36.6 operates 599 like-for-like stores.

PRIVATE LABEL:

In 1H 2012 the private label sales increased by 52% versus 1H 2011 and reached RUR 1 211 mln;

In H1 2012 a share of private label sales in the total retail pharmacy sales increased by 5 percentage points and reached 16%.

Number of SKUs in active portfolio increased by 2 155 SKU.

The main priorities of the retail segment in 2012 year are as follows: to optimize the pharmacy chain structure, simultaneous development of two brands of pharmacies and maintaining profitability level through Private Label (PL) products promotion.

It is expected that in 2012 the favourable market conjunction and new PL product lines launching will make a significant contribution into profitability increase of the retail segment in this year.

Pharmacy Chain 36.6 is the first public national health and beauty retailer listed on the "B" list on the RTS (ticker: APTK) and off-list on the MICEX. The Company’s market capitalization as of 14thAugust 2012 totaled RUR 3.543.750.000 (according to MICEX). Pharmacy Chain 36.6 operates 935 stores in 29 regions and 90 cities in Russia as of 30st of June, 2012.

JSC  Veropharm, the company's generics subsidiary, is one of Russia's top five pharmaceutical manufacturers (according to Pharmexpert research). Veropharm's shares are traded in the "B" list on the RTS (ticker: VRPH) and off-list on MICEX (ticker: VRFM). JSC  Veropharm’s market capitalization as of 14thAugust 2012 RUR 8.028.000.000 (according to MICEX).

ZAO Apteki 36.6 is one of the founding members of the Russian Association of Pharmacy Chains (RAPC). Pharmacy Chain 36.6 is a participating member of the international retailers' organizations - NRF and NACDS.