3rd Quarter 2010 Financial Results

3rd Quarter 2010 Financial Results


The turmoil created in the Greek pharmaceutical market since the beginning of the year has seriously affected the turnover of pharmaceutical companies. The anticipation of price changes announced by the government at the beginning of the year and implemented consecutively in June and September, led to a decrease in inventory levels throughout the supply chain and consequently to a significant drop in sales, influencing the gross margins of the pharmaceutical industry.

In this environment, the consolidated turnover of Lavipharm reached 146.5 million Euros compared to 182.9 million Euros for the corresponding period in 2009, decreasing by 19.9%. Due to the fall of pharmaceuticals’ prices, Gross profit dropped to 22.6 million Euros from 29.1 million Euros in the 9M of 2009, while EBITDA reached 2.9 million Euros from 4.8 million Euros the corresponding period last year. During the third quarter of 2010, one of the corporate management priorities was to maintain liquidity. In that context, a double digit decrease in operating expenses was achieved (12.1%), mainly due to further reduction of administrative expenses. A sharp decrease is evident in financial income, mainly due to non-repetitive gains of 13.4 million Euros resulting from debt forgiveness in the Group’s subsidiary in the USA, which improved the consolidated results of the Group in 2009.

Consequently, the figures are not comparable with this period’s consolidated results, which amounted to losses before taxes of 6.6 million Euros compared to profits before taxes of 8.5 million Euros last year and losses after taxes and minority interests 8.1 million Euros compared to profits of 3.7 million Euros in the 9M of 2009. It is worth mentioning that, despite the market liquidity crisis, the company restrained its loan obligations at the same level as 31/12/2009, while it reduced its short term liabilities by 15.0%.

Regarding the financial results of the mother company Lavipharm SA, turnover amounted to 34.2 million Euros from 41.5 million Euros in the 9M of 2009 as a result of the abovementioned market situation. Results before taxes show losses of 2.5 million Euros compared to losses of 687K Euros last year, while results after taxes amounted to losses of 2.7 million Euros compared to losses of 944K Euros in the same period of 2009.

Always focusing on the company’s growth and development and taking into account the current international economic and business constraints, Lavipharm proceeds carefully and diligently in all the necessary actions required to further enhance its commercial presence in Greece, and on the other hand, achieve a key position in the global pharmaceutical market.