EASTPHARMA LTD.
London, 7 May 2015 - EastPharma (EAST LI) announces that it will be releasing its Q1 2015 sales performance and a review of its main subsidiary DEVA Holding's financial statements for the related period.
Management comment on the sales 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 8 May 2015.
A conference call to review the financial performance for the period 31 March 2015 will be hosted by the management of EastPharma at 1:45pm London time on 8 May 2015(8:45am New York / 2:45pm Zurich time / 3:45pm 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: 952999
For further information, please contact:
Investor Relations:
email: ir@eastpharmaltd.com
MANAGEMENT COMMENTS ON EASTPHARMA'S SALES PERFORMANCE IN Q1 2015 (IFRS):
According to IFRS results, revenue in Q1 2015 was USD 58.1mn, up 16.2% from the same period in 2014 (USD 50.0mn). In Turkish Lira terms, revenue increased by 28.9% in the same period (Net sales in Q1 2015 were TRY 142.8mn vs TRY 110.7mn net sales in Q1 2014).
The average US Dollar exchange rate strengthened by 11.0% against the Turkish Lira to 2.4571 in Q1 2015, which compares with an average rate of 2.2146 in Q1 2014. The USD/TRY exchange rate was 2.3189 on 31 December 2014, while it was 2.6102 on 31 March 2015, which corresponds to an increase of 12.6%.
EastPharma's sales increase in US Dollar terms was mainly due to increased volumes in Human Pharma products business. In Q1 2015 versus Q1 2014, Human Pharma revenues in US Dollar terms increased by 21.6% (from USD 44.0mn to USD 53.5mn). In Turkish Lira terms, Human Pharma revenues increased by 34.9%, from TRY 97.4mn to TRY 131.4mn.
MANAGEMENT COMMENTS ON CAPITAL MARKET BOARD (CMB) FINANCIAL PERFORMANCE FOR DEVA Q1 2015:
Deva's Capital Markets Board (CMB) results show revenue in Q1 2015 was TRY 145.0mn, up 29.3% from the same period in 2014 (TRY 112.1mn).
Deva's sales increase was mainly due to increased volumes in Deva's Human Pharma products business. In Q1 2015 versus Q1 2014, Human Pharma revenue increased by 35.3% (from TRY 98.8mn to TRY 133.6mn).Veterinary business revenue decreased by 7.9% compared to the Q1 2014 (from TRY 11.46mn to TRY 10.55mn).
Deva's gross profit in Q1 2015 was TRY 62.9mn, up from TRY 38.5mn in Q1 2014. The gross profit margin in Q1 2015 was 43% vs 34% in Q1 2014.
EBITDA in Q1 2015 was TRY 32.6mn vs TRY 16.8mn in Q1 2014 representing an EBITDA margin of 22.5% vs 15.0% in Q1 2014.
Operating expenses in Q1 2015 increased by 39.8%, from TRY 27.3mn to TRY 38.1mn. The ratio of operating expenses to revenues increased to 26.3% from 24.3% compared to Q1 2014. Sales and marketing expenses in Q1 2015 were 16.0% of revenues; general administrative expenses were 6.2% of revenues; research and development expenses were 4.1% of revenues. These expenses were 17.2%, 6.6% and 0.6% in Q1 2014, respectively.
Finance expenses decreased by TRY 1.4mn, from TRY 12.8mn to TRY 11.4mn in Q1 2015 compared to Q1 2014. Foreign exchange gain/losses on borrowings decreased by TRY 0.2mn, interest on borrowings increased by TRY 0.5mn and bond interests and expenses decreased by TRY 1.7mn. Average TL interest rate decreased to 10.29% in Q1 2015 from 10.66% in Q1 2014.
Receivable days at 31 March 2015 were 118 days, compared to 117 days as at 31 December 2014.
Philipp Haas, EastPharma's Chairman and CEO, stated;
"The first quarter results have been driven by the new products and their successful marketing on one hand and by strict cost controls on the other hand. These results confirm that our main strategies, namely accelerated development of new products and in-depth marketing, while introducing cost reducing programs in all areas of the business, are starting to deliver results. Having said this, it needs to be pointed out that the first quarter is traditionally our strongest quarter and that the following two quarters are normally seasonally much weaker. In the following quarters, we will also start to feel the devaluation of the Turkish Lira in a more significant way, as accounting takes historic costs into account at the time when raw materials are purchased. It is therefore unlikely that the performance of the first quarter can be repeated over the coming quarters. Even taking these facts into account, it is very rewarding to see that the organization has successfully adapted to an extremely challenging operating environment in our Turkish home market. Further weakness of the Turkish Lira is the main issue for the whole pharmaceutical sector at this point."
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.