Corporate | 8 November 2012 07:25
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STADA Arzneimittel AG / Key word(s): Quarter Results
Corporate News STADA records an operationally good result in the first nine months of 2012 Important items at a glance
– Adjusted EBITDA increases to Euro 266.8 million (+11 percent) –
– Group sales rise to Euro 1,332.5 million (+6 percent) – International expansion of self-pay patient portfolio from substantial growth in branded products (+25 percent)
– Continued strong growth in emerging markets – especially in Russia
– ‘STADA – build the future’: Personnel reduction complete ahead of schedule – Optimistic outlook until 2014 STADA Key Figures
Bad Vilbel, November 8, 2012 – In addition to the increase in Group sales, STADA Arzneimittel AG also recorded growth in all of the reported and operational, that is, adjusted for one-time special effects, key earnings figures in the first nine months of 2012. ‘The development in the first nine months has shown that our strategy works. We therefore expect to be able to achieve our goals for financial year 2012 – particularly a record result in adjusted EBITDA’, said Hartmut Retzlaff, Chairman of the Executive Board. ‘As a result of increasing branded products’ share in sales, we are improving our positioning in the segment characterized by substantially more attractive margins.’
Furthermore, the Group was able to reach a significant goal of ‘STADA – build the future’ the Group-wide cost efficiency program scheduled to run from 2010 to 2013 ahead of schedule, because with the sale of two of the four Russian production facilities, the number of employees from the year 2010 will be reduced by approximately 10 percent (corresponding to approximately 800 full-time jobs) already in the current financial year and not, as originally planned, only by the end of 2013.
Development of sales
Sales of the core segment Generics showed a sales rise of 2 percent to Euro 872.4 million in the first nine months of the current financial year (1-9/2011: Euro 857.4 million). Generics thus contributed 65.5 percent to Group sales in the reporting period (1-9/2011: 68.5 percent). The core segment Branded Products recorded sales growth of 25 percent to Euro 437.9 million in the first nine months of 2012 (1-9/2011: Euro 350.1 million). Branded Products thus contributed 32.9 percent to Group sales in the reporting period (1-9/2011: 28.0 percent).
Earnings development
Balance sheet and cash flow
Free cash flow in the first nine months of 2012 was at Euro -356.6 million resulting from cash flow from investing activities characterized by the high payments for investments (1-9/2011: Euro 44.8 million). Free cash flow adjusted for payments for significant acquisitions and proceeds from significant disposals amounted to Euro 48.6 million in the period under review (1-9/2011: Euro 98.6 million). ‘We have delivered solid results in the third quarter as well’, said Helmut Kraft, the Company’s Chief Financial Officer. ‘With our focus on profitable growth, excellent performance in Eastern Europe and the highly profitable branded products, we were able to reduce the dampening effect in the generics segment in some West European countries and report very positive results in sales and earnings.’
Regional development
In Western Europe , sales showed an increase of 1 percent to Euro 873.7 million in the first nine months of 2012 (1-9/2011: Euro 868.4 million). In Germany , sales decreased by 4 percent to Euro 344.7 million in the period under review (1-9/2011: Euro 359.0 million). This sales decrease generally experienced in the German market resulted from the unchanged difficult local framework conditions for generics, attributable to the intensive competition in tenders for discount agreements from the public health insurance organizations. Accordingly, sales of the German generics segment declined – notwithstanding the partially high volume discount agreements concluded in 2011 – in the reporting period by 7 percent to Euro 247.2 million (1-9/2011: Euro 265.1 million). Sales generated with branded products in Germany increased by 4 percent to Euro 96.7 million in the first nine months of 2012 (1-9/2011: Euro 92.9 million). In Eastern Europe , sales generated by STADA in the first three quarters of the current financial year increased by 15 percent to Euro 384.5 million (1-9/2011: Euro 333.3 million). In addition to the positive development in Russia, the contributions to sales from the acquired branded product portfolio in Eastern Europe also contributed to the significant increase in sales in the East European markets. In Russia , the Group, recorded a clear sales increase in the first nine months of 2012 of 18 percent applying the exchange rates of the previous year. In Euro, STADA recorded even stronger sales growth of 20 percent to Euro 233.0 million due to a positive currency effect of the Russian ruble (1-9/2011: Euro 193.4 million). With generics, the Group recorded a clear rise in sales in the Russian market of 21 percent to Euro 103.0 million (1-9/2011: Euro 85.4 million). Sales of branded products rose in Russia by a strong 21 percent to Euro 129.5 million (1-9/2011: Euro 107.2 million).
Development, production and procurement
‘In addition to the reduction of personnel by about 10 percent ahead of schedule, we expect an improvement in costs of over 10 million Euros per year as a result of the sale of two of our Russian production facilities and the corresponding restructuring of our local production sites once all product transfers have been concluded’, said Dr. Axel Müller, Chief Production and Development Officer, in satisfaction of the continued successes in the ongoing implementation of the cost efficiency program ‘STADA – build the future’.
Outlook
Despite the earnings burdening one-time special effects from the further implementation of the ‘STADA – build the future’ program, the Executive Board expects a very significant increase in reported net income for 2012 as compared to 2011. The STADA Executive Board also expects continued growth in the key earnings figures adjusted for one-time special effects in the Group for 2012 and sees, from today’s perspective, the opportunity for an increase in the high single-digit percent area in EBITDA adjusted for one-time special effects for 2012. This would mean that record results are once again targeted for these key figures in 2012. Furthermore, the Executive Board affirms its long-term prognosis envisaged for 2014, according to which Group sales of approx. Euro 2.15 billion, at an adjusted level, EBITDA of approx. Euro 430 million and net income of approx. Euro 215 million should be reached. The Group’s recent acquisitions, which STADA finances organically, that is, without a capital increase, give the Executive Board a high level of confidence that these long-term growth targets will, at a minimum, be reached despite the operating challenges that still remain in individual national markets.
Additional information:
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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 News | DGAP News-Service |
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| 191924 08.11.2012 |