DGAP-News: STADA: Excellent start in Q1/2012 - Increase in all adjusted key earnings figures - Reported key earnings figures burdened by planned one-time special effects - Positive outlook until 2014 confirmed
(firmenpresse) - DGAP-News: STADA Arzneimittel AG / Key word(s): Quarter Results
STADA: Excellent start in Q1/2012 - Increase in all adjusted key
earnings figures - Reported key earnings figures burdened by planned
one-time special effects - Positive outlook until 2014 confirmed
10.05.2012 / 07:25
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Important items at a glance
- Sales development in 1-3/2012 within expectations - Profitability
further increased - Gross margin rises to over 50%:
- Group sales EUR 443.4 million (+6%)
- Net income EUR 19.4 million (-35% - adjusted +18%)
- EBITDA EUR 77.3 million (-3% - adjusted +12%)
- Earnings per share EUR 0.33 (-35% - adjusted +20%)
- Expansion of international business activities to 72% of Group sales
- Cash flow from operating activities increases to EUR 46.1 million (+9%)
- Due to the implementation of the cost efficiency program 'STADA - build
the future', planned burdening one-time special effects in the amount
of EUR 18.9 million before tax
- Integration of acquired business activities according to plan
- Positive outlook for 2012 confirmed: further growth in Group sales and
the opportunity for an increase of adjusted EBITDA in the high
single-digit percent area - long-term targets for 2014 affirmed
Bad Vilbel, May 10, 2012 - Today, on May 10, 2012, STADA Arzneimittel AG
published the financial results for the first quarter of 2012. Accordingly,
Group sales as well as all operational, i.e. adjusted for one-time special
effects, key earnings figures increased. In view of the largely planned,
burdening one-time special effects, which were particularly attributable to
the further implementation of the Group-wide cost efficiency program 'STADA
- build the future', the reported key earnings figures recorded an expected
decrease in the reporting quarter.
'Overall, STADA's business development was operationally good in the first
quarter of 2012. Adjusted for largely planned, burdening one-time special
effects, EBITDA and net income even met our highest expectations',
according to Hartmut Retzlaff, Chairman of the Executive Board of STADA
Arzneimittel AG. 'In addition, we made significant progress in the context
of our accelerated acquisitions policy to complement our organic growth.
The integration of business activities that we have just recently acquired
is also progressing according to plan', said Retzlaff, satisfied with the
successful progress of integration management.
Development of Sales
In the first three months of 2012, Group sales increased by 6% to EUR 443.4
million (1-3/2011: EUR 418.3 million). The increase continued to be
attributable to growth in STADA's international sales, whose share in Group
sales in the reporting quarter totaled 72% (1-3/2011: 70%) and recorded
growth of 10% to EUR 320.6 million (1-3/2011: EUR 291.0 million). In
consideration of sales influences, which are based on changes in the Group
portfolio and currency effects, Group sales recorded growth of 2% in the
reporting period as compared with the corresponding period of the previous
year.
Sales of Generics, which continues to be the clearly larger core segment,
recorded an increase of 2% to EUR 299.3 million (1-3/2011: EUR 292.8
million)in the first quarter of 2012. Generics thus contributed 67.5% to
Group sales in the reporting period (1-3/2011: 70.0%). Adjusted, generics
sales in the Group increased by 1%.
The Branded Products core segment recorded growth in sales of 18% to EUR
135.2 million in the first three months of the current financial year
(1-3/2011: EUR 114.6 million). Branded Products thus had a share of 30.5%
in Group sales in the first quarter of 2012 (1-3/2011: 27.4%). The Group
recorded growth of 6% in adjusted sales of branded products.
The main focus of STADA's business activities continued to be clearly on
Europe in the reporting period. Here, STADA Group sales increased by 6% to
EUR 425.2 million (1-3/2011: EUR 401.8 million) in the first quarter of
2012. In Western Europe, STADA recorded an increase in sales in the first
three months of 2012 of 4% to EUR 314.5 million (1-3/2011: EUR 301.8
million). In Eastern Europe, STADA achieved a sales increase of 11% to EUR
110.7 million in the reporting quarter (1-3/2011: EUR 100.0 million).
Earnings development
The earnings development in the first quarter of 2012 was characterized by
an increase in operating performance that was shown with growth in all of
the Group's operational, i.e adjusted for one-time special effects, key
earnings figures. The reported key earnings figures, however, recorded a
decline, which was attributable to the burdening one-time special effects,
in particular from the further planned implementation of the Group-wide
cost efficiency program 'STADA - build the future'.
Reported operating profit thus declined in the first three months of 2012
by 20% to EUR 46.3 million (1-3/2011: EUR 57.6 million). Reported net
income reduced by 35% to EUR 19.4 million (1-3/2011: EUR 29.8 million) in
the reporting quarter. Reported EBITDA showed a decrease of 3% to EUR 77.3
million in the first quarter of 2012 (1-3/2011: EUR 79.8 million).
After adjusting the key earnings figures for influences distorting the
period comparison resulting from one-time special effects and
nonoperational effects from interest rate hedge transactions, adjusted
operating profit recorded growth of 7% to EUR 67.9 million (1-3/2011: EUR
63.6 million) in the first three months of 2012. Adjusted net income
recorded growth of 18% to EUR 39.3 million (1-3/2011: EUR 33.2 million) in
the reporting period. Adjusted EBITDA increased in the first three months
of the current financial year by 12% to EUR 92.3 million (1-3/2011: EUR
82.5 million). Adjusted net income and adjusted EBITDA thus met the highest
expectations of the Executive Board.
One-time special effects recorded a net burden on earnings of EUR 21.6
million before or EUR 20.0 million after taxes in the first quarter of 2012
(1-3/2011: net burden on earnings due to one-time special effects in the
amount of EUR 5.9 million before or EUR 4.5 million after taxes).
Non-operational effects from interest rate hedge transactions amounted, in
the first quarter of 2012, to a net relief on earnings of EUR 0.1 million
before or EUR 0.1 million after taxes, which resulted from the measurement
of these transactions (1-3/2011: net relief on earnings as a result of
non-operational effects from interest rate hedge transactions of EUR 1.5
million before or EUR 1.1 million after taxes).
Taking into account these adjustments resulted in the following development
of the reported and adjusted key earnings figures in the first quarter of
2012:
in EUR million 1-3/ 1-3/ +/-Balance sheet and cash flow
2012 2011
Operating profit 46.3 57.6 -20%
Operating profit, adjusted 67.9 63.6 +7%
EBITDA (earnings before interest, taxes, 77.3 79.8 -3%
depreciation and amortization)
EBITDA, adjusted 92.3 82.5 +12%
EBIT (earnings before interest and taxes) 47.3 57.6 -18%
EBIT, adjusted 68.9 63.5 +8%
EBT (earnings before taxes) 31.9 45.5 -30%
EBT, adjusted 53.5 49.9 +7%
Net income 19.4 29.8 -35%
Net income, adjusted 39.3 33.2 +18%
Earnings per share in EUR 0.33 0.51 -35%
Earnings per share in EUR, adjusted 0.67 0.56 +20%
As of the reporting date March 31, 2012, the equity-to-assets ratio was
30.6% (December 31, 2011: 30.9%) and thereby satisfactory in the opinion of
the Executive Board. Against the backdrop of the very high payments in the
first quarter for the acquisition of companies and products for the
expansion of the portfolio in the short term in the total amount of EUR
338.0 million (1-3/2011: EUR 1.1 million), net debt rose to EUR 1,217.0
million as of March 31, 2012 (December 31, 2011: EUR 900.3 million). The
net debt to adjusted EBITDA ratio amounted in the first quarter of 2012 on
linear extrapolation of the adjusted EBITDA of the first quarter on a full
year basis to 3.3 (1-3/2011: 2.5) and was thus, as expected in view of these
recently made acquisitions, above the maximum value of 3 strived for by the
Executive Board. The Executive Board still aims to once again reduce this
figure to a maximum value of 3 within a period of 12 to 18 months.
Free cash flow in the first quarter of the current financial year was at
EUR -311.1 million resulting from cash flow from investing activities
characterized by the high payments for investments (1-3/2011: EUR 31.2
million). Free cash flow adjusted for payments for significant acquisitions
and proceeds from significant disposals amounted to EUR 30.4 million in the
reporting quarter (1-3/2011: EUR 32.4 million).
'With growth of 12% in adjusted EBITDA, we have had an excellent start in
the new financial year despite continuing difficult market conditions in
Germany and the conversion of the distribution model in Serbia which
temporarily curb sales. In addition to ongoing improvement in margins, a
particular highlight is the positive trend in operating cash flow, among
other things, supported by an improved credit management and an optimized
cost structure in Serbia. The implementation of our efficiency program
'STADA - build the future' is moving ahead according to plan', said Helmut
Kraft, STADA's Chief Financial Officer.
Regional development in STADA's two largest national markets
STADA's two largest national markets remained Germany and Russia in the
reporting quarter.
In Germany, the largest national market for STADA, sales in the reporting
period decreased by 4% to EUR 122.8 million (1-3/2011: EUR 127.3 million).
Overall, STADA's German business activities contributed 27.7% to Group
sales in the first three months of 2012 (1-3/2011: 30.4%).
The decrease in sales was still attributable to the difficult local
framework conditions for generics, which are characterized by intensive
competition for tenders for discount agreements with public health
insurance organizations. In view of this, sales in the German Generics
segment in the first three months of 2012 recorded a decrease of 6% to EUR
87.0 million (1-3/2011: EUR 92.5 million). Sales generated by STADA in the
German market with generics in the reporting period amounted to 71%
(1-3/2011: 73%) of total sales generated in the German market.
Sales generated with branded products recorded growth of 3% in the first
three months of 2012 to EUR 35.5 million (1-3/2011: EUR 34.5 million).
Sales achieved by STADA in Germany with branded products had a total share
of 29% (1-3/2011: 27%) of sales generated in the German market.
For financial year 2012, the Executive Board still expects the German
business has a moderate chance for growth on the whole with operating
profitability continuing at only just under the Group average. In view of
partly high-volume discount agreements concluded in 2011, the STADA
Executive Board expects thatthe Group's market share by volume will
continue to grow in the German generics market.
In Russia, the Group's second most important national market according to
sales, sales increased in the first quarter of 2012 by a strong 16%
applying the exchange rate of the previous year. In euro, STADA recorded
even more significant sales growth of 19% to EUR 64.8 million (1-3/2011:
EUR 54.5 million), to which a positive currency effect of the Russian ruble
also contributed.
With generics, the Group recorded strong sales growth in Russia of 18% to
EUR 28.0 million (1-3/2011: EUR 23.7 million), so that their share of
STADA's sales achieved in the Russian market amounted to 43% (1-3/2011:
44%). Sales of branded products rose significantly by 19% to EUR 36.3
million (1-3/2011: EUR 30.4 million) and thereby to 56% of STADA's sales in
Russia (1-3/2011: 56%).
In financial year 2012, STADA expects further strong sales growth in local
currency in Russia with operating profitability above Group average. The
sales and earnings contributions of STADA's business in both Russia as well
as at the Group level will remain significantly affected by the development
of the currency relation of the Russian ruble to the euro.
Product Development
Research and development costs amounted to EUR 13.1 million in the first
three months of the current financial year (1-3/2011: EUR 11.8 million).
Since STADA does not carry out any research into new active pharmaceutical
ingredients due to its business model, it is only a matter of development
costs. In addition, the Group capitalized development costs for new
products in the amount of EUR 3.3 million in the first quarter of 2012
(1-3/2011: EUR 2.6 million).
Overall, STADA launched 181 individual products worldwide in the reporting
quarter (1-3/2011: 147 product launches) in individual national markets.
'As concerns Group-owned production capacities, we have achieved
significant growth in the context of 'STADA - build the future' over the
recent years with the introduction of previously externally awarded
production orders to in-house production as well as with the preference for
in-house production of new products. In the area of product development, we
were able to conclude contracts to award a total of four projects to
external developers in India in the current financial year', positively
commented Dr. Axel Müller, STADA's Chief Production and Development
Officer.
In view of the product pipeline, which remains well-filled, the Executive
Board expects an ongoing flow of new product launches to continue in the
future, with a focus on generics in EU countries.
Outlook
The Executive Board confirms the outlook for the future development of the
STADA Group already given at the beginning of the year. Thereby, sales and
earnings development of the Group will indeed continue to be characterized
by partially stimulating, but also in part very challenging framework
conditions in the various national markets in which STADA is active. In the
overall assessment of opposing influence factors, the Executive Board, from
today's perspective, nevertheless expects a further clear increase in Group
sales for 2012, in particular with the inclusion of the recent acquisitions
of the current financial year. Here, according to the estimation of the
Executive Board, the Branded Products segment is expected to grow at a
disproportionate rate in 2012, so that the share of the generally higher
margin branded products in Group sales will thereby continue to grow.
In order to strengthen the mid and long-term earnings potential, STADA will
continue to implement the Group-wide cost efficiency program 'STADA - build
the future' scheduled for the period of 2010 to 2013. Thereby, the expected
planned project-related costs will continue to be reported as one-time
special effects according to the progress of the project in each case; this
also includes the one-time burden incurred from the sale of the factory in
Ireland in the first quarter of 2012, as well as potential burdens in the
higher single-digit million euro area from theevaluated sales of two
production facilities in Russia.
Despite these earnings burdening one-time special effects from the further
implementation of the 'STADA - build the future' program, the Executive
Board expects a significant increase in reported net income for 2012 as
compared to 2011.
The STADA Executive Board also expects continued growth in the key earnings
figures adjusted for one-time special effects in the Group for 2012 and
also sees, from today's perspective, the opportunity for an increase in the
high single-digit percent area in EBITDA adjusted for one-time special
effects for 2012. This means that record results are once again targeted
for these key figures in 2012.
Furthermore, the Executive Board affirms its long-term prognosis envisaged
for 2014, according to which Group sales of approx. EUR 2.15 billion, at an
adjusted level, EBITDA of approx. EUR 430 million and net income of approx.
EUR 215 million should be reached. The Group's recent acquisitions, which
STADA finances organically, i.e. without a capital increase, give the
Executive Board a high level of confidence that these long-term growth
targets will, at a minimum, be reached despite the operating challenges
that still remain in individual national markets.
Additional information:
STADA Arzneimittel AG / Corporate Communications / Stadastraße 2-18 / D -
61118 Bad Vilbel / Tel.: +49 (0) 6101 603-113 / Fax: +49 (0) 6101 603-506 /
E-Mail: communications(at)stada.de.
Or visit us in the Internet at www.stada.com.
End of Corporate News
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Language: English
Company: STADA Arzneimittel AG
Stadastraße 2-18
61118 Bad Vilbel
Germany
Phone: +49 (0)6101 603- 113
Fax: +49 (0)6101 603- 506
E-mail: communications(at)stada.de
Internet: www.stada.de
ISIN: DE0007251803, DE0007251845,
WKN: 725180, 725184,
Indices: MDAX
Listed: Regulierter Markt in Düsseldorf, Frankfurt (Prime
Standard); Freiverkehr in Berlin, Hamburg, Hannover,
München, Stuttgart
End of News DGAP News-Service
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168860 10.05.2012
Themen in dieser Pressemitteilung:
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reported-key-earnings-figures-burdened-by-planned-one
time-special-effects
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Datum: 10.05.2012 - 07:25 Uhr
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