OREANDA-NEWS. OJSC Pharmacy Chain 36.6 [RTS:APTK;MICEX:RU14APTK1007] - the leading Russian pharmaceutical retailer announces 2012 financial results prepared in accordance with the International Financial Reporting Standards (IFRS), audited by Deloitte.

SALES:

Consolidated sales from ongoing operations reached RUR 20 923 mln. which is a decrease of 2%;

Net sales in the retail pharmacy segment increased by 3% and reached RUR 14 899 mln.;

As of the end of 2012 Pharmacy Chain 36.6 operated 842 pharmacies, 8 stand-alone optical outlets and 24 additional optical departments within pharmacies. During 2012 49 stores were opened organically and 212 stores were closed, thus as of the end of 2012 Pharmacy Chain 36.6 operated 564 like-for-like stores and 181 ‘Leko’ stores.

PROFIT:

Consolidated Net profit in 2012 reached RUR 1 039 mln versus Net loss of RUR 288 mln in 2011;

Consolidated gross profit reached RUR 7 564 mln which is a decrease of 20%;

Gross profit of the retail pharmacy segment reached RUR 4 190 mln, which is a decrease of 16%. The gross profit margin in the retail segment in 2012 equaled to 28% versus 35% in 2011. Changes in the pricing policy of pharmacies ‘Leko’ pushed down the retail gross margin but this helped to reverse the negative trend in customer traffic;

The Company’s consolidated Operating profit increased by 33% in y-on-y terms and reached RUR 2 237 mln Consolidated selling, general and administrative expenses decreased in 2012 by 10% and reached RUR 6 947 mln;

The retail pharmacy segment Operating profit in 2012 reached RUR 878 mln versus operating loss of RUR 19 mln in 2011. Retail selling, general and administrative expenses equaled to RUR 5 032 mln, almost no change versus 2011, profit from disposal of assets equaled to RUR1 720 mln.

FINANCIAL DEBT AND INVESTMENTS

As of the end of 2012 consolidated financial debt reached RUR 9 752 mln. which is a slight increase of 2% versus the beginning of the year data. Whereas the retail pharmacy debt decreased to RUR 8 255 mln from RUR 9 070 mln. Veropharm’s debt reached RUR 1 496 mln as of the end of 2012;

Company’s Net Debt (deducting the remaining monetary funds) equaled to RUR 8 914 mln;

Consolidated finance costs in 2012 decreased by 3.2% and reached RUR 1 509 mln. Consolidated investments in fixed and intangible assets in 2012 reached RUR 1 356 mln, out of which retail investments in opening new pharmacies and re-branding equaled to RUR 274 mln.