Financial Results of the 3rd Trimester 2011

Financial Results of the 3rd Trimester 2011

 

In a difficult financial environment, with constant changes in the legal framework of the health sector, and especially in pharmaceuticals, Lavipharm has further strengthened its extrovert activities, aiming to an even greater growth of exports.

At the same time, the company implemented its long-term plan to boost sales in the domestic market and further reduce its expenses. During Q3 2011, the Consolidated Results of Lavipharm Group were affected by several changes in the prices of pharmaceutical products that slowed down the turnover mainly that of the distribution and wholesale center (LAS) and its subsidiaries across the country. As a result, the Consolidated Turnover of Lavipharm dropped to € 138.5 million from € 146.5 million last year, decreased by 5.4%, while the Gross Profit reached € 24.9 million from € 22.6 million, increased by 10.2%. With the further decrease of the operating expenses by 3.2%, ΕΒΙTDA reached € 4.5 million from € 2.9 million last year, improved by 55.5%. The significant increase in the cost of borrowing as a result of the lack of liquidity in the country, led to the increase of consolidated financial costs by 13.5%.

The consolidated results amounted to losses after taxes and minority rights €4.9 million compared to losses of €8.1 million in Q3 of 2010 decreased by 39.9% over last year. Regarding the financials of the parent company Lavipharm SA, Turnover increased by 7.4% and reached €36,7 million from €34,2 million in the corresponding period last year, while gross profit increased by 6.0%. As a result of this improvement, EBITDA shows a significant increase of 65.0%, reaching € 1.6 million from €951 in the prior corresponding period. The results after taxes amounted to losses of € 2.2 million compared to losses of € 2.7 million in 9M 2010. It is worth noting that the export activity of the Company was further enhanced during the 9M of 2011, marking an 15.9% increase of sales in units.

With the company’s growth and development as a primary objective and given the current international economic and business constraints, Lavipharm carefully and diligently proceeds with all the necessary actions required to further enhance its commercial presence in Greece, while focusing on its establishment as a key player in the global pharmaceutical market.