OREANDA-NEWS. Protek Group (PRTK: RTS, MICEX), a major Russian pharmaceutical company announces its preliminary operating results for Q3-2013 and 9M-2013 according to the management accounts (unaudited).

The Group's Q3-2013 consolidated revenue increased by 10.8% y-o-y to RUB 33,681 mln.

For 9M-2013, the Group's consolidated revenue increased by 14.9% y-o-y to RUB 100,261 mln.

The Group's revenue growth for 9 months 2013 was driven by all the business segments, each showing an uptrend.

Distribution segment generated 81.5% of Group's revenue in 9M-2013.

Retail Sales Segment

Total of 925 retail outlets were active as at September 30, 2013.

In Q3-2013, 53 pharmacies were organically opened and 13 pharmacies were closed.

In 9M-2013, 151 pharmacies were organically opened and 31 pharmacies were closed.

Retail segment generated 13.5% of Group's revenue in 9M-2013.

“Bud Zdorov!” discount pharmacy chain expansion:

As at September 30, 2013, Rigla's “Bud Zdorov!” discount brand was represented in 279 pharmacies (compared to 171 pharmacies as at September 30, 2012).

Over 9 months 2013, “Bud Zdorov!” pharmacy revenue increased by 11.9% y-o-y, traffic was up 1.6%.

Private label expansion:

As at September 30, 2013, the private label product line included 652 items compared to 457 items y-o-y, representing an increase of 11.5% q-o-q.

As at September 30, 2013, private labels accounted for 3.7% of the segment revenue and for 8.9% of the segment gross income.

Q3-2013 own brand revenue surged by 105.4% to RUB 840 mln. against RUB 409 mln. in Q3-2012.

In 9M-2013, own brand revenue went up by 79.6% to RUB 2,748 mln. against RUB 1,530 mln. for 9M-2012.

9M-2013 revenue boost was due to increased own product sales. Products of AnviLab (AnviMax, Antigrippin products) and Sotex (Chondrogard, Eralfon, Neurox, Cereton, Idrinol) were the key revenue drivers. Among licensed products Xefocam, Synocrom, Structum and Urografin showed a significant uptrend.

Production segment generated 5.0%** of Group's revenue in 9M-2013.

Vadim Muzyayev, President of Protek Group: “Over the reporting periods, both the Group's and its segments' revenue kept growing steadily, showing above the market growth in 9 months 2013. The Distribution Segment is the key revenue contributor (81.5%) and is expanding through the commercial medicine market (up 16% in Q3-2013 and up 17% in 9 months 2013). The Production Segment being the top gainer (up 30.5% in Q3-2013 and 25.4% for 9 months 2013). Own brands accounted for as much as a half of the segment's Q3-2013 revenue. For 9 months 2013, the Retail Sales Segment revenue surged by 23% to RUB 14,305 mln. due to aggressive organic growth, “Bud Zdorov!” pharmacy chain expansion and strong operational excellence.”