OREANDA-NEWS. OJSC "VEROPHARM" announces financial results of the 1st quarter of 2013.

SALES

o Sales the first quarter of 2013 amounted to RUR 1,199.7 mln. The share of product segments in OJSC “Veropharm” sales is as follows:

Group of pharmaceutical products

• Rx drugs sales amounted to RUR 959.0 mln. The Rx drugs sales made 79.9% of total sales of the Company;

• OTC drugs sales amounted to RUR 151.5 mln. The OTC drugs sales made 12.6% of total sales of the Company.

• Traditional drugs sales amounted to RUR 3.8 mln. The traditional drugs sales made 0.3% of total sales of the Company.

Group of non-pharmaceutical products

• Non-pharmaceutical products sales made RUR 85.39 mln, which corresponds to 7.1% of total sales of the Company.

o Under the Federal Reimbursement Program (FRP) Veropharm’s sales amounted to RUR 8.7 mln according to the first quarter of 2013, which corresponds to 0.7% of the Company’s total sales.

o The Russian Federation is the main market and ensures 93.6% of the Company's sales. For the first quarter of 2013 the Company exported 6.4% of its products.

PROFIT

o In the first quarter of 2013 the gross profit of OJSC “Veropharm” amounted to RUR 794,3 mln. The gross profit ratio for the first quarter of 2013 made 66.2% against 68.4% for the first quarter of 2012. The gross profit ratio of the segments of OJSC “Veropharm” is as stated:

Group of pharmaceutical products

• In relation to Rx drugs it made 67.2% in the first quarter of 2013 against 68.9% in the first quarter of 2012;

• In relation to OTC drugs it made 65% in the first quarter of 2013 against 70.6% in the first quarter of 2012;

• In relation to traditional products it made 39.3% in the first quarter of 2013 against 34% in the first quarter of 2012.

Group of non-pharmaceutical products

• In relation to non-pharmaceutical products made 57.9% in the first quarter of 2013 against 67.4% in the first quarter of 2012.

o For the first quarter of 2013 EBITDA amounted to RUR 500.3 mln. EBITDA margin increased by 11.1% as compared to the same period of the previous year and made 41.7%.

o Operating profit increased by 2.1% in the 1st quarter of 2013 as compared to the same period of 2012 and made RUR 468.3 mln. The operating profit margin made 39% in the first quarter of 2013, increase by 11% as compared to the same period in 2012.

o Net profit for the reporting period amounted to RUR 342.7 mln.

FACILITIES INVESTMENTS

o In the first quarter of 2013 amount of investments assigned for modernization and equipment of the main production facilities of the Company made RUR 401.8 mln.

DEBT

o As at March 31, 2013 the debt of OJSC “Veropharm” amounted to RUR 1,884.99 mln, which makes no more than 25% of the Company’s net assets value.