07 Jun Lavipharm – Financial Results FY 2011
In this environment, Lavipharm mainly focused on the enhancement of its export activities. At the same time, despite the constant twists and instability that prevailed and obstructed the business plans, the Company followed a long-term plan to boost sales in the domestic market and to further reduce costs and increase productivity.
In 2011, reductions in the prices of pharmaceuticals and major changes in the way the industry operates during the second half of the year, led to a significant drop in the turnover of Lavipharm Active Services (LAS), the Group’s pharmaceutical wholesaler, and its subsidiaries across the country, affecting the consolidated total income of the Group. Furthermore, several impairments of the Group’s assets, related mainly to Greek government bonds and investment properties, had an impact on the consolidated results. The consolidated turnover of Lavipharm reached € 168.70 million compared to € 198.43 million in 2010. Despite the continued containment of administrative expenses by € 3.2 million, the results of the period have been burdened by increased borrowing costs due to the cash liquidity crisis that prevailed in the market, the depreciation of the Greek government bonds under the PSI, the impairment of investment properties due to the sharp depreciation in the real estate market values, and currency exchange rated differences. The consolidated results show losses before taxes of € 13.44 million compared to profit € 878 thousand in 2010 and losses after tax and minority interests € 10.39 million compared to losses of € 3.75 million during last year. At this point, it should be noted that the figures of the two years are not comparable as the results of the previous period included non-recurring income of € 11.9 million resulting from the sale of rights and from debt write off.
Regarding the financial results of the parent company Lavipharm SA, Turnover has been maintained at similar levels as last year, amounting to € 46.97 million compared to € 46.95 in 2010. For the same reasons mentioned above, earnings before taxes were significantly weakened compared to the previous year and amounted to losses of € 5.15 million compared to profits of € 3.06 million, while after taxes results amounted to losses of € 4.41 million compared to profits of € 1.18 million in 2010.
It is worth noting that under the Group’s strategy to strengthen its commercial presence internationally and despite the existing financial and business conditions which do not facilitate growth, the Company has achieved a 6% increase in exports (in units) Exported products are manufactured in Lavipharm’s plant in Peania, offering to the Company competitive advantages.
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.