Ad-hoc | 21 September 2011 14:02
STADA Arzneimittel AG / Key word(s): Miscellaneous
21.09.2011 14:02
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Bad Vilbel, September 21, 2011 - The Executive Board of STADA Arzneimittel
AG (hereinafter 'STADA') today, on September 21, 2011, at an extraordinary
meeting of the Executive Board following a Supervisory Board meeting of the
Serbian subsidiary Hemofarm A.D. (hereinafter 'Hemofarm') held yesterday,
has come to the assessment that outstanding receivables due to Hemofarm
from various Serbian pharmaceutical wholesalers are potentially, to a
significant extent, not recoverable. In connection with this increased risk
of default, the Executive Board has decided to carry out corresponding
impairments and unscheduled depreciation in the amount of approx. EUR 97
million before taxes which will be reported in the current third quarter as
burdening one-time special effects in the Group. The resulting burden on
earnings after taxes is expected to be approx. EUR 85 million. The
liquidity situation at STADA will not be significantly burdened from this
step because the impairments and depreciation will, for the most part, have
no effect on cash.
At the meeting of the Hemofarm Supervisory Board held yesterday, the
Serbian management, against the backdrop of a once again worsening global
financial and economic crisis, presented its assessment on the impact of
the financial and economic crisis on the Serbian economy, on increasing
liquidity bottlenecks at the Serbian National Health Care Fund (RZZO) and
at various Serbian pharmaceutical wholesalers as well as on the tightening
of the application of the Serbian insolvency regulations in 2012. The STADA
Executive Board is thus compelled to impair all unsecured receivables as
well as the majority of the secured receivables due to Hemofarm from
various Serbian pharmaceutical wholesalers with a suspected restricted
liquidity situation. In addition, the Executive Board has decided to write
down the goodwill for existing minority stakes of Hemofarm in various
Serbian pharmaceutical wholesalers (19,65% in Velefarm A.D., Belgrade, and
15% in Vetfarm A.D., Belgrade) to EUR 1.00 respectively. This results, as a
portion of the burdening one-time special effects, in unscheduled
depreciation in the total amount of approx. EUR 3.8 million.
Hemofarm and STADA, in discussions with all local market participants and
with the Serbian state, will continue to actively seek sustainable
solutions for an improvement in the liquidity situation in the Serbian
pharmaceutical market and thus also for the servicing of the outstanding
Hemofarm receivables. If, as a result, the now extensive write-downs on
outstanding receivables due to Hemofarm from Serbian pharmaceutical
wholesalers be served to a better extent than anticipated, STADA will
report such receipt of payments successively in the respective reporting
period as earnings improving one-time special effects.
STADA also assumes that its own operating business in Serbia is
fundamentally stable and that it offers further growth opportunities. The
inventories of Hemofarm products in local pharmaceutical wholesalers have
been reduced to a low level as a result of targeted distribution control,
so that the currently strong sales growth in the Serbian business, which in
the first 8 months of the current financial year recorded growth of +50% in
local currency or +51% in euro as compared to the same period in the
previous year, is based on stable demand of Hemofarm products in the
Serbian market.
Regardless today's impairments and write-downs, the STADA Executive Board,
for the Group, continues to expect growth in Group sales in financial years
2011and 2012 as well as in earnings adjusted for one-time special effects
(including today's impairments and write-downs). For the EBITDA adjusted
for one-time special effects for financial year 2011, the STADA Executive
Board, from today's perspective, sees the opportunity for an increase in
the high single-digit percent area.
In addition, the Executive Board holds to the long-term targets envisaged
for financial year 2014 (see the Company's ad hoc release from June 7,
2010), according to which with Group sales of approx. EUR 2.15 billion, at
an adjusted level, EBITDA of approx. EUR 430 million and net income of
approx. EUR 215 million - on the basis of a largely organic business -
should be reached.
Additional information:
STADA Arzneimittel AG / Unternehmenskommunikation / Stadastraße 2-18 / D -
61118 Bad Vilbel / Tel.: +49 (0) 6101 603-113 / Fax: +49 (0) 6101 603-506 /
E-Mail: communications@stada.de. Or visit us in the Internet at
www.stada.com.
21.09.2011 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English
Company: STADA Arzneimittel AG
Stadastraße 2-18
61118 Bad Vilbel
Germany
Phone: +49 (0)6101 603- 113
Fax: +49 (0)6101 603- 506
E-mail: communications@stada.de
Internet: www.stada.de
ISIN: DE0007251803, DE0007251845,
WKN: 725180, 725184,
Indices: MDAX
Listed: Regulierter Markt in Düsseldorf, Frankfurt (Prime Standard);
Freiverkehr in Berlin, Hamburg, Hannover, München, Stuttgart
End of Announcement DGAP News-Service
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