OREANDA-NEWS. Protek Group (PRTK:RTS, MICEX), one of the major pharmaceutical companies in Russia operating in all segments of the pharmaceutical market (production, distribution, and retail sales), has announced its financial results for FY-2012.

In FY-2012, the Group’s consolidated revenue increased by 17.2% y-o-y to RUB 125,502 mln.

The Group made a gross profit of RUB 15,469 mln., driving the gross margin to 12.3%.

The Group’s EBITDA amounted to RUB 4,343 mln., with EBITDA margin reaching 3.5%.

The Group’s and Segments’ Financial Highlights, FY-2012:

Revenue,
RUB, mln.

Gross profit,
RUB mln.

Gross margin, %

EBITDA,
RUB mln.

EBITDA margin, %

Group

125,502

15,469

12.3%

4,343

3.5%

Distribution

109,275

8,027

7.3%

2,432

2.2%

Retail Sales

16,405

4,917

30.0%

763

4.7%

Production

6,216

2,703

43.5%

1,341

21.6%

The Group’s and Segments’ Financial Highlights, FY-2011:

Revenue,
RUB, mln

Gross profit,
RUB mln.

Gross margin, %

EBITDA,
RUB mln.

EBITDA margin, %

Group

107,053

13,968

13.0%

3,168

3.0%

Distribution

93,984

7,605

8.1%

1,623

1.7%

Retail Sales

13,810

4,262

30.9%

452

3.3%

Production

5,565

2,239

40.2%

1,209

21.7%

The key drivers behind the Group’s financial performance in FY-2012 were:

- better product range performance, focus on commercial market sales, and operating cost savings in distribution;

- organic growth, further development of multi-format pharmacies, private label portfolio expansion, better product range performance in the Retail Segment;

- continued expansion of own brands in production.

As at 31 December 2012, financial debt stood at RUB 30 mln.

Mr. Vadim Muzyayev, President of Protek Group, has commented on the FY-2012 financial results: "Over FY-2012, we managed to improve financial performance across all our segments and Group as a whole.

The Retail Segment was the top revenue gainer (18.8%), with the segment's EBITDA margin moving up to 4.7% from 3.3%, fuelled by active organic development, leveraging on a combination of pharmacy formats, private label portfolio expansion, and robust marketing policy. For two years in a row, our pharmacy chain has been ranking first among the largest peers№.

The Distribution Segment's financial performance was attributable to growth in commercial market sales, further improvement of product range, and strong operational excellence. The slower growth of gross profit (as compared to revenue) was due to lower mark-ups driven by growing competition.

In 2012, the Production Segment was the top gross profit gainer in the Group (20.7%) on the back of growing own brand share in sales. This is supported by consistent efforts to boost the own brand share in our production portfolio. The EBITDA growth (10.9%) comparable to that of revenue is attributable to higher marketing costs driven by own brand share expansion and further growth of product portfolio.

In 2013, we are heading for further sharpening of competitive edge across all our business segments and strengthening our market positions."

№ Source: IMS Health, Rating of TOP 10 Russian pharmacy chains by share in money terms at commercial retail market of medicinal products, 12m-2012