OREANDA-NEWS. Protek Group (PRTK: MICEX), one of the major pharmaceutical companies in Russia has announced its preliminary operating results for Q4-2013 and 12M-2013 according to the management accounts (unaudited).

In Q4-2013, the revenue of the Distribution Segment decreased by 0.5% y-o-y to RUB 32,868 mln.

In 12M-2013, the segment's revenue increased by 8.7% y-o-y to RUB 118,818 mln. The Distribution Segment makes up 81% of the Group's total revenue.

Retail Sales Segment

Key company of the segment is OOO Rigla.

Total of 992 retail outlets were active as at December 31, 2013.

In Q4-2013, 72 pharmacies were organically opened and 5 pharmacies were closed.

In 12M-2013, 223 pharmacies were organically opened and 36 pharmacies were closed, the total growth being 187 pharmacies.

In Q4-2013, the revenue of the Retail Sales Segment increased by 16.9% to RUB 5,587 mln.

In 12M-2013, the segment's revenue increased by 21.3% to RUB 19,895 mln. The Retail Sales Segment makes up 13.6% of the Group's total revenue.

As at December 31, 2013, there were 580 Like-for-Like pharmacies in the Retail Sales Segment.

In Q4-2013, the revenue of L-f-L pharmacies increased by 1.5%.

In 12M-2013, their revenue increased by 7.2%.

"Bud Zdorov!" discount pharmacy chain expansion:

As at December 31, 2013, Rigla's "Bud Zdorov!" discount brand was represented in 306 pharmacies.

Over 12M-2013, "Bud Zdorov!" L-f-L pharmacy revenue increased by 7.6% y-o-y, traffic down 1.6%.

Private label expansion in Retail

As at December 31, 2013, the Retail private label product line included 737 items, 13% up Q4-2013/Q3-2013.

As at December 31, 2013, private label products comprised 3.7% and 9.0% of the segment's total revenue and gross profit, respectively.

In Q4-2013, the Production Segment's revenue increased by 29.7% y-o-y to RUB 2,620 mln.

In 12M-2013, the segment's revenue increased by 27.0% y-o-y to RUB 7,892 mln. The Production Segment makes up 5.4% of the Group's total revenue**.

In Q4-2013, own brand revenue grew by 21.5% to RUB 1,494 mln. against RUB 1,230 mln. in Q4-2012.

For 12M-2013, own brand revenue surged by 56.2% to RUB 4,242 mln. against RUB 2,716 mln. for 12M-2012.

In 12M-2013, own product sales was driven by the launch of new products and dosages: Chondrogard 2 ml, AnviMax Capsules, Sustaguard and Influnet.

The 2013 revenue boost is due to increased own product sales. Products of AnviLab (AnviMax, Antigrippin products) and Sotex (Chondrogard, Cereton, Amelotex, Neurox) were the key revenue drivers. Among licensed products, Actovegin, Metipred and Synocrom showed a significant uptrend.

Vadim Muzyayev, President of Protek Group: "In 2013, Protek Group's revenue grew by 11%, our market cap up by over 60%. The Distribution Segment showed an 8.7% revenue growth in 12M-2013. The Distribution Segment's expansion is slowing down gradually, which is a sign of the growing market competition and reducing margins in the distribution business. The Group's revenue growth is mainly powered by Production and Retails Sales, having shown a strong uptrend in the reporting period (27.0% and 21.3%, respectively)."