OREANDA-NEWS. Protek Group (PRTK: RTS, MICEX), one of the major pharmaceutical companies in Russia has announced its preliminary operating results for Q4-2012 and 12M　2012 according to the management accounts (unaudited).

Group Operating Highlights by segment:

Revenue,
RUB　mln.

Group

Distribution

Retail Sales

Production

Eliminations

Q4-2012

38,261

33,083

4,766

2,032

-1,620

Q4-20121

32,259

28,235

3,862

1,807

-1,645

Change, 2012/2011, %

18.6%

17.2%

23.4%

12.4%

　

Revenue,
RUB　mln.

Group

Distribution

Retail Sales

Production

Eliminations

12M　2012

125,516

109,308

16,391

6,228

-6,411

12M　20121

107,053

93,984

13,810

5,565

-6,306

Change, 2012/2011, %

17.2%

16.3%

18.7%

11.9%

　

In Q4-2012, the consolidated revenue of the Group* increased by 18.6%　y-o-y to RUB　38,261　mln.

In 12M　2012, the Group’s consolidated revenue increased by 17.2%　y-o-y to RUB　125,516　mln.

The Group’s revenue growth for 12M　2012 was driven by all business segments, each showing an uptrend.

Distribution Segment:

Key company of the segment is CV　Protek.

Distribution Segment Operating Highlights:

　

Revenue, RUB　mln.

Q4-2012

33,083

Q4-2011

28,235

Change, 2012/2011, %

17.2%

　

Revenue, RUB　mln.

12M　2012

109,308

12M　2011

93,984

Change, 2012/2011, %

16.3%

In Q4-2012, the revenue of the Distribution Segment increased by 17.2%　y-o-y to RUB　33,083　mln.

In 12M　2012, the segment’s revenue increased by 16.3%　y-o-y to RUB　109,308　mln. The Distribution Segment makes up 83% of the Group’s total revenue**.

Retail Sales Segment

Key company of the segment is Rigla pharmacy chain.

The total number of retail outlets was 805 at December　31, 2012.

In Q4-2012, 47　pharmacies were organically opened and 6　pharmacies were closed.

In 12M　2012, 143　pharmacies were organically opened and 33　pharmacies were closed.

Retail Sales Segment Operating Highlights:

　

Revenue,
RUB　mln.

Traffic, ‘000

4Q-2012

4,766

14,506

4Q-2011

3,862

12,746

Change, 2012/2011, %

23.4%

13.8%

　

Revenue,
RUB　mln.

Traffic, ‘000

12M　2012

16,391

52,869

12M　2011

13,810

49,045

Change, 2012/2011, %

18.7%

7.8%

In Q4-2012, the revenue of the Retail Sales Segment increased by 23.4% to RUB　4,766　mln.

In 12M　2012, the segment’s revenue increased by 18.7% to RUB　16,391　mln. The Retail Sales Segment accounted for 12% of the Group’s total revenue**.

Like-for-Like (L-f-L) Sales***:

As at December　31, 2012, there were 442　Like-for-Like pharmacies in the Retail Sales Segment.

L-f-L Retail Sales Segment Operating Highlights:

　

L-f-L revenue change, %

Traffic change, %

Average ticket change, %

Q4-2012　/ Q4-2011

10.1%

-0.8%

11.0%

12M　2012　/ 12M　2011

8.6%

-2.8%

11.7%

In Q4-2012, the revenue of L-f-L pharmacies increased by 10.1%.

In 12M　2012, their revenue increased by 8.6%.

“Bud Zdorov!” discount pharmacy chain expansion:

As at December　31, 2012, Rigla’s “Bud Zdorov!” (Bless You!) discount brand was represented in 215　pharmacies (compared to 171　pharmacies as at September　30, 2012).

In 12M　2012, the revenue of “Bud Zdorov!” pharmacies increased by 22.1%　y-o-y, traffic was up 8.9%.

Private label development:

As at December　31, 2012, the private label product line included 552　items compared to 457　items as at September　30, 2012, representing an increase of 21% q-o-q.

As at December　31, 2012, private label products comprised 3.1% and 7.3% of the segment’s total revenue and gross profit, respectively.

Production Segment

Key company of the segment is Sotex.

Production Segment Operating Highlights:

　

Revenue, RUB　mln.

Volume, mln.　packages

Own brands in revenue,　 %

Q4-2012

2,032

10.94

61%

Q4-2011

1,807

8.60

53%****

Change, 2012/2011, %

12.4%

27.3%

　

　

Revenue, RUB　mln.

Volume, mln.　packages

Own brands in revenue,　 %

12M　2012

6,228

27.57

44%

12M　2011

5,565

20.29

32%****

Change, 2012/2011, %

11.9%

35.9%

　

In Q4-2012, the Production Segment’s revenue increased by 12.4%　y-o-y to RUB　2,032　mln.

In 12M　2012, the segment’s revenue increased by 11.9%　y-o-y to RUB　6,228　mln. The Production Segment makes up 5% of the Group’s total revenueІ.

In Q4-2012, revenue from own brands increased by 29%　y-o-y to RUB　1,230　mln., compared to RUB　956　mln.4 in Q4-2011.

In 12M　2012, revenue from own brands increased 55%　y-o-y to RUB　2,760　mln., compared to RUB　1,775　mln.4 in 12M　2011.

Over 12M　2012, the Group expanded the number of own brands, launching Chondrogard, Nemulex and adding new dosages of established brands.

Over the reporting period, the product line reached 58　own brands, compared to 46 in 12M　2011.

Vadim Muzyayev, President of Protek Group: “Both the Group as a whole and each of its segments demonstrated solid revenue growth in the reporting period. Retail was the top performer in this area, fuelled by active organic development, leveraging on a combination of pharmacy formats, and strong marketing in high seasons. Revenue growth in Distribution outperformed the market average, and was well above the 3.5% achieved in 2011. This is in line with our strategy to boost our market share and strengthen our sector leadership. CV　Protek continued to enhance service and widen its commercial customer base that remains the core focus for distribution, and successfully carried on with its efforts to improve product range performance and reduce costs. Production stayed abreast with the other segments, demonstrating stable growth on the back of its strategic focus on own brands which accounted for 44% of the Company revenue in 12M　2012.

The Group has adopted a 5-year development strategy that includes pursuing new projects in logistics and growing our customer base, expanding the retail chain, and reinforcing our product portfolio, including in the OTC market.”