EastPharma Ltd : Reviewed Financial Statement's announcement for the period 30 June 2013

EastPharma Ltd : Reviewed Financial Statement's announcement for the period 30
                                  June 2013

EASTPHARMA LTD.


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
related period.

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.

Conference call:

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:
Investor Relations:
email: ir@eastpharmaltd.com

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
2013.

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 
December 2012.

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

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Source: EastPharma Ltd via Thomson Reuters ONE
HUG#1724685
 
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