OREANDA-NEWS. On 01 September 2009 OJSC "VEROPHARM" [RTS:VRPH, MICEX:VFRM] announced its unaudited financial results for the 1st Half 2009 in accordance with the International Financial Reporting Standarts (IFRS).

Sales

Consolidated sales in 1H 2009 reached USD 69.6 mln., a 19.5% decrease as compared to the same period in 2008 (in RUR sales increased by 11.0% and amounted to 2 300.0 million).

The share of Rx drugs sales in 1H 2009 increased to 69% as compared to 65% in 1H 2008. The share of OTC drugs increased from 8% to 9% in 1H 2009. The share of Adhesive bandages in finished goods decreased from 20% to 19% in 1H 2009. Portfolio of traditional drug sales as before demonstrated tendency for a decrease of share in sales — the decrease from 7% to 3%.

Veropharm sales as part of Federal Reimbursement Program (FRP) came to USD 2.0 mln. in 1H 2009, accounting for 2.9% of the Company’s total finished goods sales. By the results of 1H 2008, FRP sales were USD 3.3 mln., or 3.8% of the Company’s total finished goods sales.

Sales within the Russian Federation accounted for 98% of the Company’s total finished goods sales in 1H 2009.

Profit

In 1H 2009 the Gross profit of Veropharm reached USD 47.9 mln., a 18.4% decrease as compared to the same period in 2008 (in RUR gross profit totaled 1 582.4 million, a 12.5% increase as compared to the same period in 2008). Gross margin increased to 68.8% in comparison with 67.9% in 1H 2008.

In the product segments gross margin has the following values: Rx drugs — 73.7%; OTC drugs — 68.2%; adhesive bandages — 58.6%; traditional products — 16.8%.

In 1H 2009 EBITDA decreased by 19.6% as compared to 1H 2008 and reached USD 23.0 mln. which makes 33,0% of Company’s total sales (in RUR gross profit totaled 759.2 million, a 10.9% increase as compared to the same period in 2008).

In 1H 2009 Net profit decreased by 6.7% to USD 18.1 mln. which makes 26.0% of Company’s total sales, an increase of 3,6 %  in comparison with 1H 2008 (in RUR gross profit totaled 598.8 million, a 29.0% increase as compared to the same period in 2008).

Debt

As of the end of 1H 2009 the debt of OJSC “Veropharm” amounted to USD 27.6 mln. that represents less than 25% of Company’s net assets.