Lavipharm – Financial Results Q1 2012

During the first quarter of 2012, in an extremely unstable and uncertain economic and political environment, Lavipharm followed a long-term plan to increase productivity and enhance its export activities. At the same time, Lavipharm continued to strengthen its extroversion and to seek new opportunities and co-operations internationally.

During Q1 2012 financial results of Lavipharm Group were significantly affected by the harsh reduction in Lavipharm’s wholesaling subsidiary activity (Lavipharm Active Services), resulting from the evident turbulence of the sector which commenced the previous year. In that context, Lavipharm’s consolidated turnover dropped to € 10.0 million from € 48.0 million in Q1 2011. On the contrary, profit margin has been significantly increased, since most of sales come from commercial activity, where margins are much higher than wholesaling ones. Despite of this improvement and of the reduction of administrative expenses by € 2.4 million, consolidated EBITDA dropped to -€ 164 K from +€ 389 K in Q1 2011. Consolidated results show losses before taxes of € 3.3 million compared to losses of € 3.1 million and losses after taxes and minority interests of € 2.6 million compared to losses of € 2.3 million during the same period last year.

Regarding the financial results of the parent company Lavipharm SA, turnover has been decreased compared to Q1 2011, amounting to € 10.5 million from € 13.2 million, as a result of the decrease in pharmaceuticals’ prices, negative list, the difficulty in the implementation of the electronic prescription, factors that influenced the whole sector. The reduction in administrative expenses by 14.9% (€ 497 K) has improved both EBITDA (€ 719 K from € 325 K in Q1 2011) and results before and after taxes compared to those of the previous corresponding period, which show losses before taxes of  € 463 K from losses of € 1.1 million and losses after taxes of € 471 K from losses of € 1.2 million.

Focusing on the company’s growth and development 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 and its positioning as a key player in the global pharmaceutical market.