DGAP-News: STADA: Very good results in Q1/2010 - Group sales +5% - Net income +17% - EBITDA +12% - Outlook remains positive for 2010
(firmenpresse) - STADA Arzneimittel AG / Quarter Results
12.05.2010 07:25
Dissemination of a Corporate News, transmitted by
DGAP - a company of EquityStory AG.
The issuer / publisher is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
Important items at a glance
* Group sales EUR 395.7 million (+5%)
* Net income EUR 28.1 million (+17%), adjusted EUR 33.1 million (+17%)
* EBITDA EUR 75.8 million (+12%), adjusted EUR 76.0 million (+12%)
* Outlook remains positive for 2010: sales growth and operating (i.e.
adjusted for one-time special effects) earnings growth with at least
stable margin development in an environment that continues to be difficult
in various national markets
Today, on May 12, 2010, STADA Arzneimittel AG published the financial
results for the first quarter of 2010. Accordingly, Group sales increased
and net income rose clearly.
'Despite the ongoing difficult framework conditions in various national
markets, the key earnings figures of the first quarter are in the upper end
of our expectations. We can therefore talk about a very good result in the
first quarter', was the positive comment of Hartmut Retzlaff, Chairman of
the Executive Board of STADA Arzneimittel AG, on the encouraging business
development of the Group in the first quarter of 2010.
Development of Sales
In the first quarter of 2010, Group sales rose by 5% to EUR 395.7 million
(1-3/2009: EUR 375.9 million). This was due in particular to the Group's
international sales which, in the first quarter of 2010, made up a total of
64% (1-3/2009: 61%) of Group sales and increased by 11% to EUR 252.3
million (1-3/2009: EUR 228.1 million).
On balance, changes in the Group portfolio as well as currency effects did
not significantly influence sales development in the first quarter of 2010;
as a result, Group sales correspondingly adjusted for these effects
increased by a total of 5% compared to the corresponding period in the
previous year.
Sales of Generics, which continues to be the significantly larger core
segment (share of Group sales 70.4%, 1-3/2009: 71.7%), increased in the
reporting quarter - despite the partly very difficult framework conditions
in individual national markets - by 3% to EUR 278.4 million (1-3/2009: EUR
269.5 million). Adjusted, Generics sales in the Group increased by 4%.
Branded Products (share of Group sales 25.6%, 1-3/2009: 24.5%) recorded an
increase in sales of 10% to EUR 101.2 million in the reporting period
(1-3/2009: EUR 92.0 million). Adjusted, sales of branded products in the
Group increased by 7%.
Business activities continued to focus on Europe in the first three months
of 2010. Here, sales of the STADA Group went up by 5% to EUR 378.2 million
(1-3/2009: EUR 360.9 million). Sales achieved by STADA in European markets
thus contributed 95.6% (1-3/2009: 96.0%) to Group sales. Adjusted, Group
sales in Europe showed an increase of 4%.
In Western Europe, STADA recorded an increase in sales of 3% to EUR 291.4
million in the reporting period (1-3/2009: EUR 282.5 million). STADA's
sales in Western Europe thus had a share of 73.7% in Group sales (1-3/2009:
75.1%). STADA's adjusted sales in Western European markets increased by 3%.
In Eastern Europe the Group recorded a sales increase of 11% to EUR 86.8
million (1-3/2009: EUR 78.5 million) in the first three months of the
current financial year. Sales in the Eastern European markets thus
contributed 21.9% (1-3/2009: 20.9%) to Group sales. Adjusted Group sales in
Eastern Europe increased by 10%.
In Asia, STADA's sales in the first three months of 2010 went up by 14% to
EUR 12.4 million (1-3/2009: EUR 10.9 million). STADA's sales in Asia thus
amounted to 3.1% (1-3/2009: 2.9%) of Group sales. STADA's adjusted sales in
the Asian markets increased by 19%.
Group sales in the rest of the world rose in the reporting quarter by 23%
to EUR 5.1 million (1-3/2009: EUR 4.1 million). Sales in the rest of the
world thus amounted to a share of 1.3% of Group sales (1-3/2009: 1.1%).
Adjusted sales growth of the Group amounted here to 23%.
Earnings development
All reported key earnings figures increased in the first three months of
the current financial year.
Net income rose clearly by 17% to EUR 28.1 million (1-3/2009: EUR 24.1
million). Operating profit went up by 6% to EUR 51.4 million (1-3/2009: EUR
48.6 million). Earnings before interest, taxes, depreciation and
amortization (EBITDA) grew by 12% to EUR 75.8 million (1-3/2009: EUR 67.5
million). Earnings before interest and taxes (EBIT) recorded an increase by
6% to EUR 51.3 million (1-3/2009: EUR 48.2 million). Earnings before taxes
(EBT) increased by 19% to EUR 38.4 million (1-3/2009: EUR 32.2 million).
Earnings per share went up by 17% to EUR 0.48 (1-3/2009: EUR 0.41). Diluted
earnings per share were at EUR 0.47 (1-3/2009: EUR 0.41).
The key earnings figures included in the first quarter of 2010 a burden
from one-time special effects in the amount of EUR 7.9 million before or
EUR 6.0 million after taxes (1-3/2009: slight net relief on earnings from
one-time special effects in the amount of EUR 0.2 million before or EUR
0.02 million after taxes) as well as non-operational effects from currency
influences and interest rate hedge transactions in the total amount of EUR
1.4 million before or EUR 1.0 million after taxes (1-3/2009: net burden on
earnings from non-operational effects from currency influences and interest
hedge transactions in the amount of EUR 6.1 million before or EUR 4.2
million after taxes).
After adjusting the key earnings figures for these two influences
distorting the period comparison, adjusted net income rose clearly in the
reporting period by 17% to EUR 33.1 million (1-3/2009: EUR 28.3 million).
Adjusted operating profit increased by 13% to EUR 57.0 million (1-3/2009:
EUR 50.3 million). Adjusted earnings before interest, taxes, depreciation
and amortization (adjusted EBITDA) grew by 12% to EUR 76.0 million
(1-3/2009: EUR 67.6 million). Adjusted earnings before interest and taxes
(adjusted EBIT) went up by 14% to EUR 56.8 million (1-3/2009: EUR 49.9
million). Adjusted earnings before taxes (adjusted EBT) increased by 18% to
EUR 44.9 million (1-3/2009: EUR 38.0 million). Adjusted earnings per share
grew by 17% to EUR 0.56 (1-3/2009: EUR 0.48). Adjusted diluted earnings per
share were at EUR 0.55 (1-3/2009: EUR 0.48).
Financial position and cash flow
As of the reporting date March 31, 2010, the equity-to-assets ratio, at
36.9% (December 31, 2009: 35.5%), continued to be clearly above the minimum
ratio strived for by the Executive Board. Net debt amounted to EUR 881.2
million as of March 31, 2010 (December 31, 2009: EUR 899.0 million) and as
of this reporting date continued to be mainly financed via long-term
promissory notes from various international and national banks with
maturities in the area of 2010-2015. However, in view of the targeted
optimization of the long-term refinancing structure to increase liquidity
security, in the current second quarter of 2010, on April 14, 2010, STADA,
as is known, placed a corporate bond with a volume of EUR 350 million. The
bond has a term of five years with an interest rate of 4.00% per year.
If the net debt of the Group is placed in proportion to the adjusted EBITDA
of STADA it results in - on linear extrapolation of the adjusted EBITDA of
the first quarter on a full year basis - a value of 2.9. With this, the
full year target, which envisages a return of this ratio to a maximum value
of 3, was temporarily reached already in the first quarter of 2010 (value
as of December 31, 2009: 3.1). This development confirms the Executive
Board's opinion, that, from today's perspective, it is possible to achieve
the target strived for also on a full year basis.
The Group's cash flow from operating activities in the first three months
of the current financial year amounted to EUR 64.6 million (1-3/2009: EUR
37.9 million). Free cash flow amounted to EUR 24.6 million in the reporting
period (1-3/2009: EUR 16.2 million). Free cash flow adjusted for expenses
from acquisitions and proceeds from disposals amounted to EUR 46.7 million
in the first three months of 2010, while free cash flow adjusted for
expenses from acquisitions and proceeds from disposals had amounted to EUR
13.7 million in the first quarter of 2009.
'As intended, we further improved both cash flow from operating activities
and free cash flow. This shows that the measures we intensified for
optimizing STADA's working capital management are successful', said Helmut
Kraft, the Group's Chief Financial Officer, about the continued positive
cash flow development.
Regional development in STADA's three largest national markets
In Germany, which continues to be the largest national market for STADA,
sales decreased by 3% to EUR 143.4 million (1-3/2009: EUR 147.9 million).
The share of the German business activities in Group sales thus amounted to
36.2% in the first three months of 2010 (1-3/2009: 39.3%).
The decline in sales in Germany was due to the continued difficult local
framework conditions in the Generics segment. The German generics market
continued to be marked by the direct and indirect effects of regulatory
interventions. These include in particular the discount agreements with
health insurance organizations brought about as a result of regulatory
changes in 2007. STADA regularly participates in tenders for such discount
agreements using different bid strategies characterized by margin and
market share aspects and consequently also with a large variation in terms
of award results.
Against this backdrop, STADA's generics sales in Germany declined by 6% to
EUR 106.1 million in the first quarter of 2010 (1-3/2009: EUR 112.9
million). Generics thus had a 74% share in German Group sales (1-3/2009:
76%). The STADA Group's market share in terms of generics sold in German
pharmacies was approx. 13.2% (financial year 2009: approx. 13.5%) in the
reporting period; the STADA Group thus remains the third largest local
generics supplier.
The Group's generics sales in Germany are generated via various sales
labels. ALIUD PHARMA, the largest of the Group-owned sales lines in the
German generics market, recorded a sales decrease in the first quarter of
2010 of 8% to EUR 61.1 million (1-3/2009: EUR 66.5 million). The second
Group-owned German generics label STADApharm also recorded a sales decline
in the reporting period of 6% to EUR 37.6 million (1-3/2009: EUR 39.9
million). In contrast, STADA's other generics sales label cell pharm,
special supplier for the indication areas oncology and nephrology, recorded
a considerable sales increase in the first quarter of 2010 of 17% to EUR
7.1 million (1-3/2009: EUR 6.1 million).
Sales of branded products in Germany - predominantly under the local sales
labels STADA GmbH and Hemopharm - increased in the first quarter of 2010 by
6% to EUR 36.4 million (1-3/2009: EUR 34.2 million); this development was
due, among other things, to the branded product EUNOVA Multi-Vitalstoffe
Langzeit Kapseln, which was acquired by STADA in Germany at the end of 2009
for sale through Hemopharm, and which contributed EUR 1.1 million to sales
in the first quarter of 2010.
In the current financial year 2010, from today's perspective, the Executive
Board continues to expect sales approximately at the level of the previous
year for the Group's German activities with operating profitability
slightly below Group average.
In Russia, which continues to be STADA's second most important national
market, the Group recorded encouraging sales growth in the first quarter of
2010 in the amount of 17%, applying last year's exchange rates. In euro,
sales increased by 23% to EUR 44.7 million (1-3/2009: EUR 36.2 million).
The two core segments in the Russian market continued to have nearly the
same share of local Group sales. Generics thus contributed EUR 22.4 million
(1-3/2009: EUR 20.6 million) or 50% (1-3/2009: 57%) to STADA's sales in
Russia. Sales of branded products amounted to EUR 22.2 million (1-3/2009:
EUR 15.5 million) or 50% of STADA's sales in Russia (1-3/2009: 43%).
For the current financial year 2010, STADA continues to expect further
strong sales growth in local currency in the Russian market with operating
profitability which continues to be above Group average. The sales and
earnings contributions of the Russian business activities at Group level
will remain largely dependent on the development of the currency relation
of the local currency, the Russian ruble, to the euro.
In Italy, STADA recorded an increase in sales of 8% to EUR 32.0 million in
the reporting quarter (1-3/2009: EUR 29.5 million).
This was largely due to the Group's generics sales in the Italian market,
which rose considerably by 31% to EUR 22.1 million (1-3/2009: EUR 16.8
million). Generics thus had a share of 69% in local sales in the first
three months of the current financial year (1-3/2009: 57%). This
significant sales growth in generics was based on the one hand on the
relatively low comparable basis of the corresponding quarter in the
previous year and, on the other, on newly introduced limitations on
discounts for the trade channels.
The Branded Products segment in contrast, recorded a sales decline in Italy
in the first quarter of 2010 of 22% to EUR 9.9 million (1-3/2009: EUR 12.6
million) and thus still contributed 31% (1-3/2009: 43%) to STADA's sales in
Italy.
Sales growth with an operating profitability which will again be at about
Group average can, from today's perspective, continue to be expected in
Italy for the current financial year 2010.
Research and development
Research and development costs amounted to EUR 12.0 million in the first
three months of 2010 (1-3/2009: EUR 11.1 million). Overall, STADA launched
158 individual products worldwide in the first quarter of 2010 (1-3/2009:
121 product launches) in individual national markets.
The development activities of BIOCEUTICALS Arzneimittel AG, a company
initiated by STADA and predominantly financed via venture capital, whose
business activities focus on biosimilar products and whose development
activities are operationally carried out by STADA, currently continue to
concentrate on Epo-zeta. In addition to studies on pharmacovigilance, an
expansion of the existing EU-wide approval for the subcutaneous application
in the indication area of nephrology was strived for. After, as is known,
the so-called 'positive opinion' by the EMA was achieved in the first
quarter of 2010, STADA received approval for this additional indication
from the EU Commission on April 6, 2010.
Outlook
The Executive Board fundamentally confirms the outlook and risk report
published for the Group in STADA's Annual Report 2009. Together with the
supplementary statements and updates made in the interim report on the
first three months of 2010, it gives, in the view of the Executive Board,
an accurate and up-to-date overall picture of the STADA Group's
opportunities and risks.
STADA's business model is accordingly geared towards markets with long-term
growth potential in the health care and pharmaceutical markets; inevitably
linked to this, however, are risks and challenges that arise from
repeatedly intensive competition and changed or additional state
regulation. Therefore, in the Executive Board's assessment, far-reaching
regulatory interventions, intensive competition and significant margin
pressure will always occur in individual national markets. The latter
applies in particular to the increasing volume of business in the Generics
segment characterized by tenders.
Furthermore, the Group will, also in the future, have to deal with
non-operational influence factors, particularly specific effects from the
global financial and economic crisis. The development of the STADA Group in
financial year 2010 will thus continue to depend to a large extent on
currency relations, particularly those of the Russian ruble and Serbian
dinar to the euro.
Thus, the sales and earnings development of the STADA Group will, also in
the current financial year 2010, be characterized by differing and
partially contradictory factors in the various national markets. From the
expected sales increase for the Group assumed by the Executive Board in
2010, however, positive influences on earnings development can also be
anticipated.
STADA's Executive Board expects that the continuing 'STADA - build the
future' project for the optimization of the Group structures will allow
additional earnings contributions to be achieved which, with the gradual
implementation of the individual measures, will amount to annual savings in
the double digit million area. However, from today's perspective, after
decisions on the implementation of the measures anticipated in the first
half year of 2010 rising investments as well as burdens on the income
statement due to project-related one-time special effects must be expected.
Against the backdrop of these factors influencing the Group's earnings
development, the Executive Board in its overall assessment continues to
expect that in financial year 2010 there is the opportunity for operating
earnings growth and at least a stabilization of operating margins.
Overall, from today's perspective it should remain possible in financial
year 2010 to achieve overall growth in terms of sales and in terms of all
operational key earnings figures, i.e. adjusted for one-time special
effects.
Additional information:
STADA Arzneimittel AG / Corporate Communications / Stadastraße 2-18 /
D - 61118 Bad Vilbel /Phone: +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.
12.05.2010 07:25 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Medienarchiv atwww.dgap-medientreff.deandwww.dgap.de---------------------------------------------------------------------------
Language: English
Company: STADA Arzneimittel AG
Stadastraße 2-18
61118 Bad Vilbel
Deutschland
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 Frankfurt (Prime Standard), Düsseldorf;
Freiverkehr in Berlin, Hannover, München, Hamburg, Stuttgart
End of News DGAP News-Service
---------------------------------------------------------------------------
Datum: 12.05.2010 - 07:25 Uhr
Sprache: Deutsch
News-ID 20717
Anzahl Zeichen: 0
contact information:
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 449 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"DGAP-News: STADA: Very good results in Q1/2010 - Group sales +5% - Net income +17% - EBITDA +12% - Outlook remains positive for 2010"
steht unter der journalistisch-redaktionellen Verantwortung von
STADA Arzneimittel AG (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
