OREANDA-NEWS. On July 31, 2007 OAO "VEROPHARM" [RTS:VRPH, MICEX:VRFM] announced non-audited financial results for the first quarter of 2007 in accordance with the International Financial Reporting Standards (IFRS), reported the press-centre of OAO "VEROPHARM".

Sales

Sales in Q1 2007 were up 22,5% year-on-year and totaled US$24,1 million.

The sales volume of finished products in Q1 2007 totaled US$23,7 million.

The share of prescription drugs in VEROPHARM’s sales increased in Q1 2007 to 52,6%, compared to 49,6% in Q1 2006.  The share of adhesive bandages in total sales decreased to 18,5%, down from 23.7% a year earlier.  Non-prescription (OTC) medications increased their share to 10,1%, up from 8,3% in Q1 2006. The portfolio of VEROPHARM’s traditional medications saw an insubstantial change, rising from 18,4% to 18,8%.

VEROPHARM’s sales as part of the Federal Reimbursement Program (DLO) totaled $1,0 million in Q1 2007, which represented 4,2% of the Company’s sales.

Profits

VEROPHARM’s gross profits in Q1 2007 grew 32,2% year-on-year and reached $15,4 million.  The gross profit margin grew from 59,1% a year earlier to 63,8%.

The gross profit margin for delivery of finished products increased from 61,0% in Q1 2006 to 63,8% in 2007.

Results from Q1 2007 demonstrated year-on-year growth in gross profit margin in the following segments: OTC medications – from 52,3% to 59,0%; and traditional medications – from 30,7% to 41,4%. The gross profit margin remained practically unchanged for RX drugs – from 74,9% in Q1 2006 to 74,8% in Q1 2007.  The gross profit margin for adhesive bandages decreased from 58,4% to 57,9%.

The Company’s EBITDA increased by 31,2% year-on-year, reaching US$7,1 million. The EBITDA margin for Q1 2007 amounted to 29,3%.

VEROPHARM’s net profit in Q1 2007 was up 77,5% year-on-year and totaled US$5,5 million.

Debt

VEROPHARM’s debt at the end of Q1 2007 totaled US$20,6 million.