EASTPHARMA LTD.
London, 10 March 2015 - EastPharma (EAST LI) announces that it will be releasing figures on its financial statements for the period 31 December 2014 and a review of its main subsidiary DEVA Holding's financial statements for the related period.
Management comment on the financial performance of EastPharma is provided in the attachment, and a presentation of the results will be available on the EastPharma website www.eastpharmaltd.com on 11 March 2015.
A conference call to review the financial performance for the period 31 December 2014 will be hosted by the management of EastPharma at 2:30pm London time on 11 March 2015(10:30am New York / 3:30pm Zurich time / 4:30pm Istanbul time). The dial-in details are provided below.
Conference call:
Dial-in Number (UK): + 44 (0)20 7162 0077
Dial-in Number (US): + 1 334 323 6201
Dial-in Number (Switzerland): + 41 (0)434 5692 61
Dial-in Number (Germany): + 49 (0)695 8999 0507
Conference ID: 951764
For further information, please contact:
Investor Relations:
email: ir@eastpharmaltd.com
MANAGEMENT COMMENTS ON EASTPHARMA's FINANCIAL PERFORMANCE IN 12M 2014 (IFRS):
According to IFRS results, revenue in 12M 2014 was USD 210.5mn, down 3.0% from the same period in 2013 (USD 217.1mn). In Turkish Lira terms, revenue increased by 12.2% in the same period (Net sales in 12M 2014 were TRY 460.3mn vs TRY 410.4mn net sales in 12M 2013).
The average US Dollar exchange rate strengthened by 14.9% against the Turkish Lira to 2.1865 in 12M 2014, which compares with an average rate of 1.9033 in 12M 2013. The USD/TRY exchange rate was 2.1343 on 31 December 2013, while it was 2.3189 on 31 December 2014, which corresponds to an increase of 8.6%.
EastPharma's sales decrease in US Dollar terms was mainly due to the strengthening of the US Dollar against the Turkish Lira. In 12M 2014 versus 12M 2013, Human Pharma revenues in US Dollar terms decreased by 6.0% (from USD 206.8mn to USD 194.4mn). In Turkish Lira terms, Human Pharma revenues increased by 8.8%, from TRY 390.9mn to TRY 425.1mn.
Deva's Capital Markets Board (CMB) results show revenue in 12M 2014 was TRY 467.9mn, up 11.8% from the same period in 2013 (TRY 418.4mn).
Deva's sales increase was mainly due to increased volumes in Deva's Human Pharma and Veterinary products business revenue. In 12M 2014 versus 12M 2013, Human Pharma revenue increased by 8.5% (from TRY 398.9mn to TRY 432.7mn).Veterinary business revenue increased by 128.7% compared to the 12M 2013 (from TRY 12.34mn to TRY 28.22mn).
EastPharma's gross profit in 12M 2014 was USD 79.9mn, down from USD 88.3mn in 12M 2013. The gross profit margin in 12M 2014 was 38% vs 41% in 12M 2013.
EBITDA in 12M 2014 was USD 32.6mn vs USD 40.4mn in 12M 2013 representing an EBITDA margin of 15.5% vs 18.6% in 12M 2013.
Operating expenses in 12M 2014 decreased by 13.9%, from USD 73.8mn to USD 63.5mn. The ratio of operating expenses to revenues decreased to 30.2% from 34.0% compared to 12M 2013. Sales and marketing expenses in 12M 2014 were 18.4% of revenues; general administrative expenses were 10.8% of revenues. These expenses were 21.5% and 11.6% in 12M 2013, respectively.
Finance cost decreased by USD 3.3mn, from USD 43.6mn to USD 40.3mn in 12M 2014 compared to 12M 2013. Foreign exchange gain/losses on borrowings decreased by USD 4.8mn, amortization of discount on receivables decreased by USD 2.9mn, on the other hand, interest on borrowings and bond interests and expenses increased by USD 4.4mn. Average TL interest rate increased to 10.7% in 12M 2014 from 7.60% in 12M 2013.
Receivable days at 31 December 2014 were 117 days, compared to 134 days as at 31 December 2013.
Philipp Haas, EastPharma's Chairman and CEO, stated;
"During 2014, we benefitted from many years of investments into R&D and new technologies, as we were able to launch good, new products. Thanks to these new products, we were able to soften the negative impact from the Turkish Lira devaluation on our results, both in terms of top line but more importantly, the new products with better margins helped us to defend our margins to some extent and still to reach a respectable EBITDA margin of 15.5%.
We will therefore continue with our strategy to develop new generic products for both the Turkish and the international markets."
EastPharma Ltd - a company active in the manufacturing and marketing of pharmaceutical products in Turkey and in other regional markets; for further information please visit www.eastpharmaltd.com.