OJSC «VEROPHARM» ANNOUNCES FINANCIAL RESULTS OF THE FIRST HALF OF 2014

August 29, 2014, MOSCOW - OJSC «VEROPHARM» [RTS:VRPH, MICEX:VFRM] announces its unaudited financial results of the first half of 2014 in accordance with the International Financial Reporting Standards (IFRS).

SALES
  • Sales in the first half of 2014 amounted to RUR 2,689 mln. The share of product segments in OJSC "Veropharm" sales is as follows: Group of pharmaceutical products
    • Rx drugs sales amounted to RUR 1,956 mln. The Rx drugs sales made 72.7% of total sales of the Company;
    • OTC drugs sales amounted to RUR 404 mln. The OTC drugs sales made 15.1% of total sales of the Company.
    Group of non-pharmaceutical products
    • Non-pharmaceutical products sales made RUR 329 mln, which corresponds to 12.2% of total sales of the Company.
  • Under the Federal Reimbursement Program (FRP) Veropharm's sales amounted to RUR 23.7 mln according to the results of the first half of 2014, which corresponds to 0.9% of the Company's total sales.
  • The Russian Federation is the main market and ensures 96.6% of the Company's sales. During the first half of 2014 the Company has exported 3.4% of its products.
PROFIT
  • In the first half of 2014 the gross profit of OJSC "Veropharm" amounted to RUR 1,290 mln. The gross profit ratio in the first half of 2014 made 48.0%. The gross profit ratio of the segments of OJSC "Veropharm" is as stated: Group of pharmaceutical products
    • In relation to Rx drugs it made 42.7% in the first half of 2014;
    • In relation to OTC drugs it made 61.8% in the first half of 2014.
    Group of non-pharmaceutical products
    • In relation to non-pharmaceutical products it made 61.9% in the first half of 2014.
  • In the first half of 2014 EBITDA amounted to RUR 654 mln. EBITDA margin made 24.3%.
  • Operating profit in the first half of 2014 made RUR 654 mln. Operating profit margin made 21.7% in the first half of 2014.
  • Net profit for the reporting period amounted to RUR 465 mln. Net profit margin made 17.3%.
FACILITIES INVESTMENTS
  • In the first half of 2014 the amount of investments assigned for modernization and equipment of the main production facilities of the Company made RUR 1,125 mln.
  • As at June 30, 2014 the debt of OJSC "Veropharm" amounted to RUR 2,886 mln, which makes no more than 30% of the Company's net assets value.

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