EastPharma Ltd : Reviewed Financial Statement's announcement for the period 30
London, 23 August 2013 - EastPharma (EAST LI), a company active in the
manufacturing and marketing of pharmaceutical products in Turkey and in other
regional markets, announces its H1 2013 reviewed financial statements and a
review of its main subsidiary DEVA Holding's financial statements for the
Management comment on the financial performance of EastPharma is provided in
the attachment, and a presentation of the results will be available on the
EastPharma website www.eastpharmaltd.com on 26 August 2013.
A conference call to review the H1 2013 financial performance will be hosted
by the management of EastPharma at 4:00pm London time on 26 August 2013
(11:00am New York / 5:00pm Zurich time / 6:00pm Istanbul time). The dial-in
details are provided below.
Dial-in Number (UK): + 44 (0)20 7162 0077
Dial-in Number (US): +1 877 491 0064
Dial-in Number (Switzerland): +41 (0)434 5692 61
Dial-in Number (Germany): +49 (0)695 8999 0507
Conference ID: 935777
For further information, please contact:
SALES UPDATE AND MANAGEMENT REVIEW
EASTPHARMA'S PERFORMANCE (According to IMS data) COMPARED TO TURKEY'S OVERALL
H1 2013 MARKET PERFORMANCE
According to IMS Health data, a total of 889.71mn units of drugs, worth TRY
7.66bn (USD 4.23bn), were sold in the Turkish Pharmaceutical market in H1
In unit sales terms the Turkish market declined by 1.40% in H1 2013, while
Eastpharma's unit sales increased by 7.32% compared to same period of 2012,
achieving sales of 49.29mn units according to IMS figures. With this growth in
unit sales Eastpharma's market share in unit terms increased from 5.1% in H1
2012 to 5.5% in H1 2013 and the company maintained its 4th place ranking in
the Turkish pharmaceuticals market.
By sales value in Turkish Lira, the national market increased by 3.99% in H1
2013 compared to H1 2012. According to IMS figures for H1 2013, EastPharma
achieved sales worth TRY 312.52mn (USD 172.51mn), an increase of 14.86%
compared to H1 2012. Consequently, EastPharma's market share by value
increased from 3.7% in H1 2012 to 4.1% in H1 2013 and the company moved up
from 6th place to 5th place in the national ranking.
MANAGEMENT COMMENTS ON EASTPHARMA's FINANCIAL PERFORMANCE IN H1 2013 (IFRS):
According to IFRS results, revenue in H1 2013 was USD 121.9mn, up 4.1% from
the same period in 2012 (USD 117.1mn). In Turkish Lira terms, revenue
increased by 5% in the same period (Net sales in H1 2013 were TRY 220.5mn vs
TRY 210.1mn net sales in H1 2012).
The average US dollar exchange rate strengthened by 1% against the Turkish
Lira to 1.8089 in H1 2013, which compares with an average rate of 1.7935 in H1
2012. The USD/TRY exchange rate was 1.7826 on 31 December 2012, while it was
1.9248 on 30 June 2013, which corresponds to an increase of 8%.
EastPharma's sales increase was driven by increased volumes in DEVA's Human
Pharma Products businesses. In H1 2013 versus H1 2012, Human Pharma revenues
increased by 8.7% (from USD 106.6mn to USD 115.8mn).
Deva's Capital Markets Board (CMB) results show revenue in H1 2013 was TRY
223.5mn, up 5.4% from the same period in 2012 (TRY 212.1mn).
Deva's sales increase in TRY terms was mainly due to increased volumes at
Deva's Human Pharma businesses. In H1 2013 versus H1 2012, Human Pharma
revenue increased by 10% (from TRY 193.2mn to TRY 212.5mn).Veterinary Products
revenue decreased by 51% (from TRY 15.3mn to TRY 7.5mn).
EastPharma's gross profit in H1 2013 was USD 52.4mn, up fromUSD 51.9mn in H1
2012. The gross profit margin in H1 2013 was 43% vs 44% in H1 2012.
EBITDA in H1 2013 was USD 24.7mn vs USD 24.2mn in H1 2012 representing an
EBITDA margin of 20.3% vs 20.7% in H1 2012.
Operating expenses in H1 2013 increased by 6%, from USD 35.6mn to USD 37.6mn.
The ratio of operating expenses to revenues increased to 30.9% from 30.4%
compared to H1 2012. Sales and marketing expenses in H1 2013 were 20.3% of
revenues; general administrative expenses were 10.3% of revenues. These
expenses were 18.7% and 10.6% in H1 2012, respectively.
Finance cost increased by USD 2mn, from USD 19.7mn to USD 21.7mn in H1 2013
compared to H1 2012. This was primarily due to foreign exchange gain / losses
on borrowings: EastPharma made a foreign exchange loss of USD 2.1mn in H1
2013, compared to a gain of USD 0.4mn in H1 2012 on borrowings.
Receivable days at 30 June 2013 were 126 days, compared to 129 days as at 31
Philipp Haas, EastPharma's Chairman and CEO, said; "I am very pleased to see
EastPharma strongly outperforming the sector both in terms of unit and value
sales growth. This mirrors the management efforts over the past years and
shows that we have created a strong foundation for future growth with our
efficient production and R&D organizations. At the same time, the negative
pharmaceutical market development in Turkey with negative unit growth and with
ever increasing competitive pressures from both existing players and well as
from many new market entrants, provides a tough challenge. Since the end of
the first half, the negative sales growth of the market has accelerated and
competition has further intensified. In the absence of official price
reductions, we suffered price reductions through the reference pricing system
of 35 of our products in the first half 2013, especially due to lower prices
in Spain. On the financial side, interest rates in Turkish Lira have moved up
strongly while the Turkish Lira itself has lost significant value, both of
which will significantly increase our finance costs going forward. The weak
Turkish Lira makes our raw material imports, which are all in hard currencies,
more expensive and will negatively impact our margins."
H1 2013 Results of EastPharma Ltd
EastPharma Consolidated Financial Statements 30 June 2013
This announcement is distributed by Thomson Reuters on behalf of Thomson
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
information contained therein.
Source: EastPharma Ltd via Thomson Reuters ONE
Press spacebar to pause and continue. Press esc to stop.