RECORDATI: SALES GROWTH AND SIGNIFICANT MARGIN IMPROVEMENT IN THE FIRST QUARTER 2014    oConsolidated revenue € 260.4 million, +6.5%.   oEBITDA^(1) € 71.4 million, +16.4%   oOperating income € 62.2 million, +18.1%.   oNet income € 42.8 million, +13.2%.   oNet financial position^(2): net debt of € 229.1 million.   oExclusive license agreement with Apricus Biosciences for Vitaros®.   oFull year 2014 targets: sales slightly below € 1,000 million, operating     income above € 220 million and net income above € 150 million.  MILANO, Italy,  May 6,  2014 (GLOBE  NEWSWIRE) --  The Board  of Directors  of  Recordati S.p.A.  approved  the Group's  consolidated  results for  the  first  quarter 2014 prepared  in accordance with  International Accounting  Standards  and International Financial Reporting  Standards (IAS/IFRS) and in  particular  as per IAS 34 requirements  for interim reporting. These financial  statements  will be available today at the company's offices and on the company's website: and can also be viewed on the website of Borsa Italiana S.p.A.  Financial highlights    oConsolidated revenue in the first quarter 2014 is € 260.4 million, up by     6.5% compared to the same period of the preceding year. International     sales grow by 7.0%.        oEBITDA^(1), at 27.4% of sales, is € 71.4 million, an increase of 16.4%     over the same period of the preceding year.        oOperating income, at 23.9% of sales, is € 62.2 million, an increase of     18.1%.        oNet income, at 16.4% of sales, is € 42.8 million, an increase of 13.2%     over the first quarter of 2013.        oNet financial position^(2) at 31 March 2014 records a net debt of € 229.1     million. Shareholders' equity increases to € 742.2 million.   ^(1) Earnings before interest, taxes, depreciation and amortization. ^(2) Cash and short-term financial investments less bank overdrafts and medium/long-term loans which include the measurement at fair value of hedging derivatives (fair value hedge).  Business development news  In February  an exclusive  license  agreement was  entered into  with  Apricus  Biosciences Inc., a pharmaceutical company based in San Diego, U.S.A., for the marketing and sales of Vitaros®  (alprostadil), an innovative topical  product  for the treatment of  erectile dysfunction, in  certain W. European  countries  including, among others,  Spain, EU  member countries in  Central and  Eastern  Europe, Russia, Ukraine and the  Commonwealth of Independent States  (C.I.S.),  Turkey and certain African countries.  Vitaros^® is approved for the treatment of erectile dysfunction by a number of European  health  authorities   and  by   Health  Canada.   Vitaros^®  is   a  topically-applied cream  formulation  of  alprostadil,  a  vasodilator,  which  directly increases blood flow to  the penis, causing an erection.  Alprostadil  is an alternative to the PDE-5 inhibitors for difficult to treat patients, and Vitaros^® offers  a  patient-friendly  form versus  other  alprostadil  dosage  forms.  Management Comments  "The first quarter results are particularly positive; the consolidation of the new companies acquired at the end of  2013 and the performance of our  product  portfolio have  allowed us  to further  improve our  profitability",  declared  Giovanni Recordati, Chairman and CEO. "For  the full year 2014 we confirm  our  expectations to achieve operating  income of more than  € 220 million and  net  income of more than € 150  million thanks to margin improvement. Revenues,  as  of today,  are  expected  to be  slightly  below  € 1,000  million  due  to  a  significant negative currency effect."  Conference call  Recordati will  be hosting  a conference  call today  6 May  2014 at  4.00  pm  Italian time  (3.00 pm  London time,  10.00  am New  York time).  The  dial-in  numbers are:  Italy  +39 02 8058811, toll free 800 213 858 UK  +44 1 212818003, toll free 800 0156384 USA  +1 718 7058794, toll free 855 2656959 France  +33 170918703 Germany  +49 65 255114451  Callers are  invited  to  dial-in  10  minutes  before  conference  time.  If  conference operator assistance is required during the connection please  digit  * followed by 0 or  call +39 02 8061371. A  recording of the conference  call  will be placed on the website  A set of slides which will be referred to during the call will be available on our website under Investors/Company Presentations.  Recordati , established  in 1926,  is an  international pharmaceutical  group,  listed on the Italian Stock Exchange (Reuters RECI.MI, Bloomberg REC IM,  ISIN  IT 0003828271), with a total staff of around 4,000, dedicated to the research, development, manufacturing and marketing of pharmaceuticals. Headquartered  in  Milan, Italy,  Recordati has  operations in  the main  European countries,  in  Russia, in other Central and Eastern  European countries, in Turkey, in  North  Africa and  in the  United States  of America.  An efficient  field force  of  medical representatives promotes a  wide range of innovative  pharmaceuticals,  both proprietary and under license, in a number of therapeutic areas including a specialized business dedicated to treatments for rare diseases. Recordati is a partner of choice for new product licenses for its territories. Recordati is committed to  the  research and  development  of new  specialties  within  the  urogenital therapeutic area and of treatments for rare diseases. Consolidated revenue for 2013 was € 941.6 million, operating income was € 195.4 million and net income was € 133.7 million.  For further information:  Recordati website:  Investor Relations  Media Relations Marianne         Tatschke  Ketchum (39)0248787393 Cristina Risciotti, (39)0262411919, e-mail:     Marzia  Ongaretti,                                                     (39)0262411915,   S tatements  contained  in this  release,  other than  historical  facts,  are  "forward-looking  statements"  (as  such  term  is  defined  in  the   Private  Securities Litigation  Reform Act  of  1995). These  statements are  based  on  currently available information, on current best estimates, and on assumptions believed to be reasonable. This  information, these estimates and  assumptions  may prove  to be  incomplete  or erroneous,  and  involve numerous  risks  and  uncertainties, beyond the Company's control. Hence, actual results may  differ  materially from those expressed or implied by such forward-looking statements. All mentions and  descriptions of  Recordati products are  intended solely  as  information on the  general nature  of the  company's activities  and are  not  intended to  indicate the  advisability of  administering any  product in  any  particular instance.                                 RECORDATI GROUP Summary of consolidated results prepared in accordance with the International      Accounting Standards and International Financial Reporting Standards                                   (IAS/IFRS)                                (thousands of €)  INCOME STATEMENT                First quarter 2014 First quarter 2013 Change % REVENUE                         260,362            244,577            6.5  Cost of sales                (86,995)           (85,360)           1.9 GROSS PROFIT                    173,367            159,217            8.9  Selling expenses             (75,509)           (73,566)           2.6  Research and development     (20,786)           (18,468)           12.6 expenses  General & administrative     (14,462)           (13,530)           6.9 expenses  Other income (expenses), net (423)              (1,018)            (58.4) OPERATING INCOME                62,187             52,635             18.1  Financial income (expenses), (4,087)            (1,288)            217.3 net PRE-TAX INCOME                  58,100             51,347             13.2  Provision for income taxes   (15,334)           (13,581)           12.9 NET INCOME                      42,766             37,766             13.2 Attributable to:                                                     Equity holders of the parent    42,764             37,762             13.2 Minority interests              2                  4                  (50.0)  EARNINGS PER SHARE First quarter 2014 First quarter 2013 Change % Basic              € 0.211            € 0.188            12.2 Diluted            € 0.202            € 0.178            13.5  Earnings per share (EPS) are based  on average shares outstanding during  each  year, 202.722.546 in 2014  and 200.796.533 in 2013,  net of average  treasury  stock which amounted to  6.402.610 shares in 2014  and to 8.328.623 shares  in  2013. Diluted earnings per  share is  calculated taking into  account stock  options  granted to employees.  COMPOSITION OF REVENUE First quarter 2014 First quarter 2013 Change % Total revenue          260,362            244,577            6.5 Italy                  67,036             63,879             4.9 International          193,326            180,698            7.0                                 RECORDATI GROUP Summary of consolidated results prepared in accordance with the International      Accounting Standards and International Financial Reporting Standards                                   (IAS/IFRS)                                (thousands of €)  ASSETS                                                   31.03.2014 31.12.2013 Property, plant and equipment                            81,302     81,288 Intangible assets                                        287,955    295,498 Goodwill                                                 467,680    468,807 Equity investments                                       7,491      5,939 Non-current receivables                                  4,404      4,256 Deferred tax assets                                      26,586     25,205 TOTAL NON-CURRENT ASSETS                                 875,418    880,993                                                                    Inventories                                              135,087    140,430 Trade receivables                                        203,203    179,775 Other receivables                                        21,663     24,979 Other current assets                                     7,972      5,363 Short-term financial investments, cash and cash          105,380    52,271 equivalents TOTAL CURRENT ASSETS                                     473,305    402,818 TOTAL ASSETS                                             1,348,723  1,283,811  EQUITY AND LIABILITIES                              31.03.2014 31.12.2013 Share capital                                       26,141     26,141 Capital in excess of par value                      83,719     83,719 Treasury stock                                      (36,427)   (37,791) Hedging reserve                                     (3,591)    (2,270) Translation reserve                                 (46,548)   (42,853) Other reserves                                      26,937     25,776 Retained earnings                                   693,641    559,878 Net income for the year                             42,764     133,678 Interim dividend                                    (44,526)   (44,526) GROUP SHAREHOLDERS' EQUITY                          742,110    701,752 Minority interest                                   70         68 SHAREHOLDERS' EQUITY                                742,180    701,820                                                               Loans due after one year                            220,423    196,788 Employees' termination pay                          16,691     16,698 Deferred tax liabilities                            20,375     21,072 Other non-current liabilities                       4,037      4,040 TOTAL NON-CURRENT LIABILITIES                       261,526    238,598                                                               Trade payables                                      110,773    107,156 Other payables                                      69,464     71,193 Tax liabilities                                     20,615     15,951 Other current liabilities                           720        855 Provisions                                          25,795     29,454 Fair value of hedging derivatives (cash flow hedge) 3,591      2,270                                                    2,202      2,210 Loans due within one year                           86,522     80,280 Bank overdrafts                                     25,335     34,024 TOTAL CURRENT LIABILITIES                           345,017    343,393 TOTAL EQUITY AND LIABILITIES                        1,348,723  1,283,811  DECLARATION BY THE MANAGER RESPONSIBLE  FOR PREPARING THE COMPANY'S  FINANCIAL  REPORTS  The manager responsible  for preparing the  company's financial reports  Fritz  Squindo  declares,  pursuant  to  paragraph  2  of  Article  154-bis  of   the  Consolidated Law on Finance, that the accounting information contained in this press release  corresponds  to  the document  results,  books  and  accounting  records.  RECORDATI: SALES GROWTH AND SIGNIFICANT MARGIN IMPROVEMENT IN THE 1°Q  HUG#1783016  
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