OREANDA-NEWS. September 3, 2012. Protek Group (PRTK: RTS, MICEX), one of the major pharmaceutical companies in Russia operating in all segments of the pharmaceutical market (production, distribution, and retail sales), announces its financial results for 1HY-2012.

In 1HY-2012, the Group’s consolidated revenue increased by 19.6% y-o-y to RUB 56,844 mln.

The Group made a gross profit of RUB 7,209 mln., driving the gross margin to 12.7%.

The Group’s EBITDA amounted to RUB 1,903 mln., with EBITDA margin reaching 3.3%.

The Group’s and Segments’ Financial Highlights, 1HY-2012:

 

Revenue,
RUB, mln.

Gross profit,
RUB mln.

Gross margin, %

EBITDA,
RUB mln.

EBITDA margin, %

Group

56,844

7,209

12.7%

1,903

3.3%

Distribution

49,385

3,881

7.9%

1,166

2.4%

Retail Sales

7,743

2,349

30.3%

327

4.2%

 

Production

2,920

1,160

39.7%

563

19.3%

The Group’s and Segments’ Financial Highlights, 1HY-2011:

 

Revenue,
RUB, mln

Gross profit,
RUB mln.

Gross margin, %

EBITDA,
RUB mln.

EBITDA margin, %

Group

47,511

6,305

13.3%

851

1.8%

Distribution

41,475

3,372

8.1%

241

0.6%

Retail Sales

6,749

2,122

31.4%

240

3.6%

 

Production

2,483

909

36.6%

449

18.1%

The key drivers behind the Group’s financial performance in 1HY-2012 were:
- higher operating profit margins, focus on commercial market sales, and operating cost savings in distribution;
- organic growth, leveraging on the multi-format retail operations, efficient product range and pricing policies in retail sales (own brand development, managing purchase price through tendering);
- continued increase in the number of own brands in the Production Segment.

As at 30 June 2012, financial debt was RUB 148 mln.

Mr. Vadim Muzyayev, President of Protek Group, has commented on the 1HY-2012 financial results: “Over the period, the Group delivered significant performance improvement year-on-year both for the Group as whole and across the business segments.       Distribution Segment was the top performer, with almost four times EBITDA margin growth. This strong performance is partly attributable to the low base effect of the previous year (due to profitability improvement measures) but also, importantly, to the effective measures to boost commercial sales (+ 25.1%) and sustaining commercial mark-up levels. Other important performance drivers were better product range performance (with 19.1% increase in revenue achieved against a backdrop of 7.5% package sales reduction) and operating cost savings.
The Retail Sales Segment’s financial performance was attributable to our focus on boosting our competitive edge (further development of multi-format pharmacies), organic retail chain growth, and improved product range (in particular, a significant increase in the number of own brand products).
The Production Segment demonstrated revenue growth of 17.6% accompanied by EBITDA margin improvement to 19.3% from 18.1%, driven primarily by our continuing policy of own brand portfolio expansion.”