OREANDA-NEWS. Protek Group (PRTK: RTS, MICEX), one of the major pharmaceutical companies in Russia has announced its preliminary operating results for Q1-2013 according to the management accounts (unaudited).

Group Operating Highlights by segment:

Revenue,
RUB mln.

Group

Distribution

Retail Sales

Production

Eliminations

Q1-2013

34,689

29,807

4,888

1,681

-1,688

Q1-2012

28,539

24,645

3,893

1,596

-1,595

Change, 2013/2012, %

21.5%

20.9%

25.5%

5.4%

In Q1-2013, the consolidated revenue of the Group* increased by 21.5% y-o-y to RUB 34,689 mln.

The Group’s revenue growth in Q1-2013 was driven to a large extent by the Distribution and Retail Sales segments.

Distribution Segment:

Key company of the segment is CV Protek.

Distribution Segment Operating Highlights:

Revenue, RUB mln.

Q1-2013

29,807

Q1-2012

24,645

Change, 2013/2012, %

20.9%

In Q1-2013, the revenue of the Distribution Segment increased by 20.9% y-o-y to RUB 29,807 mln.

The Distribution Segment makes up 82.0% 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 839 at March 31, 2012.

In Q1-2013, 44 pharmacies were organically opened and 10 pharmacies were closed.

Retail Sales Segment Operating Highlights:

Revenue,
RUB mln.

Traffic, ‘000

Q1-2013

4,888

14,733

Q1-2012

3,893

12,793

Change, 2013/2012, %

25.5%

15.2%

In Q1-2013, the revenue of the Retail Sales Segment increased by 25.5% to RUB 4,888 mln.

The Retail Sales Segment makes up 13.4% of the Group’s total revenue**.

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

As at March 31, 2013, there were 580 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, %

Q1-2013 /Q1-2012

13.5%

2.1%

11.2%

In Q1-2013, the revenue of L-f-L pharmacies increased by 13.5%.

“Bud Zdorov!” discount pharmacy chain expansion:

As at March 31, 2013, Rigla’s “Bud Zdorov!” (Bless You!) discount brand was represented in 246 pharmacies (compared to 215 pharmacies as at December 31, 2013).

In Q1-2013, the revenue of L-f-l “Bud Zdorov!” pharmacies increased by 16.2% y-o-y, L-f-l traffic was up 5.7%.

Private label development:

As at March 31, 2013, the private label product line included 582 items compared to 552 items as at December 31, 2013.

As at March 31, 2013, private label products comprised 3.4% and 8.0% 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, %

Q1-2013

1,681

7,72

56%

Q1-2012

1,596

6,42

41%

Change, 2013/2012, %

5.4%

20.3%

In Q1-2013, the Production Segment’s revenue increased by 5.4% y-o-y to RUB 1,681 mln.

The Production Segment makes up 4.6% of the Group’s total revenue**.

In Q1-2013, revenue from own brands increased by 44% y-o-y to RUB 934 mln., compared to RUB 650 mln. in Q1-2012. Over Q1-2013, the product line reached 58 own brands, compared to 49 in Q1-2012.

Vadim Muzyayev, President of Protek Group: "In the reporting period, the Protek Group outpaced the market growth. The top revenue gainers were the Distribution and Retail Sales Segments (20.9% and 25.5%, respectively). CV Protek, Protek's core distributor, expanded its coverage of commercial market (that makes up 89% of the segment's revenue versus 85% in Q4-2012). From early in the year, the Retail Sales Segment was boosting organic growth rates to open 44 pharmacies in Q1-2013. The Production Segment's relatively moderate growth in revenue (5.4%) was due to sales of some licensed generics stopped. At the same time, our own brands (share in the segment's portfolio up 18% y-o-y) demonstrated growth. Generally, the Q1-2013 performance meets our expectations. We are looking forward to positive growth ahead of the market throughout 2013."

* Unaudited management accounts for Q1-2013, preliminary data.
** Calculated as the share of each segment in the total revenue (excluding unallocated revenue and eliminations).
*** Like-for-Like data on the pharmacies opened or acquired over the 24 months immediately preceding the reporting period and not closed during the reporting period.