OREANDA-NEWS. On September 03, 2007 OAO VEROPHARM [RTS:VRPH, MICEX:VRFM] announced its unaudited financial results for H1 2007 in accordance with the International Financial Reporting Standards (IFRS), reported the press-centre of VEROPHARM.

Sales
Sales in H1 2007 were up 31,7% year-on-year and totaled US$59,5 million.
The sales volume of finished products in H1 2007 totaled US$57,6 million.*

The share of prescription drugs in VEROPHARM’s sales increased in H1 2007 to 54,2%, compared to 51,0% in H1 2006. The share of adhesive bandages in total sales decreased to 20,8%, down from 22,7% a year earlier. Non-prescription (OTC) medications decreased their share to 7,9%, down from 9,5% in H1 2006. The share of VEROPHARM’s traditional medications portfolio rose from 16,7% to 17,1%.*

VEROPHARM’s sales as part of the Federal Reimbursement Program (DLO) totaled US$2,1 million in H1 2007, which represented 3,6% of the Company’s finished goods sales. The DLO Program sales in H1 2006 totaled US$3,4 million (7,8% of finished goods sales).

Profits
VEROPHARM’s gross profits in H1 2007 grew 32,0% year-on-year and reached US$36,6 million.  The gross profit margin grew from 61,4% a year earlier to 61,5%.

The gross profit margin for delivery of finished products decreased from 63,2% in H1 2006 to 62,7% in H1 2007. The gross profit margin decreased following the changes in the finished goods sales structure.

Results from H1 2007 demonstrated year-on-year drop in gross profit margin in the following segments: RX drugs – from 75,6% to 73,1%; OTC medications – from 57,9% to 55,8%; and adhesive bandages – from 60,9% to 57,0%. The gross profit margin for traditional drugs increased from 31,9% to 40,1%.

The Company’s EBITDA increased by 41,0% year-on-year, reaching US$17,0 million. The EBITDA margin for H1 2007 amounted to 28,6%.

VEROPHARM’s net profit in H1 2007 was up 47,9% year-on-year and totaled US$11,0 million.

Debt
VEROPHARM’s debt at the end of H1 2007 totaled US$21,4 million.

* hereinafter financials are as per OAO VEROPHARM management accounts.