EASTPHARMA LTD.
London, 13 August 2015 - EastPharma (EAST LI) informs that it will be releasing its financial statements for the period 30 June 2015 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 14 August 2015.
A conference call to review the financial performance for the period 30 June 2015 will be hosted by the management of EastPharma at 12:30pm London time on 14 August 2015 (7:30am New York / 1:30pm Zurich time / 2:30pm 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: 954536
For further information, please contact:
Investor Relations:
email: ir@eastpharma.com
MANAGEMENT COMMENTS ON EASTPHARMA's FINANCIAL PERFORMANCE IN H1 2015 (IFRS):
According to IFRS results, revenue in H1 2015 was USD 112.9mn, up 6.6% from the same period in 2014 (USD 105.9mn). In Turkish Lira terms, revenue increased by 26.2% in the same period (Net sales in H1 2015 were TRY 289.2mn vs TRY 229.1mn net sales in H1 2014).
The average US Dollar exchange rate strengthened by 18.4% against the Turkish Lira to 2.5606 in H1 2015, which compares with an average rate of 2.1629 in H1 2014. The USD/TRY exchange rate was 2.3189 on 31 December 2014, while it was 2.6863 on 30 June 2015, which corresponds to an increase of 15.8%.
EastPharma's sales increase in US Dollar terms was mainly due to increased volumes in Human Pharma products business. In H1 2015 versus H1 2014, Human Pharma revenues in US Dollar terms increased by 9.8% (from USD 96.0mn to USD 105.4mn). In Turkish Lira terms, Human Pharma revenues increased by 30.1%, from TRY 207.6mn to TRY 270.1mn.
Deva's Capital Markets Board (CMB) results show revenue in H1 2015 was TRY 293.9mn, up 26.4% from the same period in 2014 (TRY 232.5mn).
Deva's sales increase was mainly due to increased volumes in Deva's Human Pharma products business. In H1 2015 versus H1 2014, Human Pharma revenue increased by 30.2% (from TRY 211.1mn to TRY 274.8mn).Veterinary business revenue decreased by 5.1% compared to the H1 2014 (from TRY 16.62mn to TRY 15.78mn).
EastPharma's gross profit in H1 2015 was USD 50.1mn, up from USD 40.6mn in H1 2014. The gross profit margin in H1 2015 was 44% vs 38% in H1 2014.
EBITDA in H1 2015 was USD 26.4mn vs USD 16.6mn in H1 2014 representing an EBITDA margin of 23.4% vs 15.6% in H1 2014.
Operating expenses in H1 2015 increased by 3.5%, from USD 31.1mn to USD 32.2mn. The ratio of operating expenses to revenues decreased to 28.5% from 29.4% compared to H1 2014. Sales and marketing expenses in H1 2015 were 15.7% of revenues; general administrative expenses were 10.2% of revenues; research and development expenses were 2.6% of revenues. These expenses were 18.5%, 10.3% and 0.5% in H1 2014, respectively.
Finance cost decreased by USD 2.8mn, from USD 21.4mn to USD 18.6mn in H1 2015 compared to H1 2014. Foreign exchange gain/losses on borrowings increased by USD 0.6mn, on the other hand, amortization of discount on receivables decreased by USD 2.6mn and interest on borrowings and bond interests and expenses decreased by USD 0.8mn. Average TL interest rate decreased to 10.4% in H1 2015 from 11.2% in H1 2014.
Receivable days at 30 June 2015 were 117 days, compared to 117 days as at 31 December 2014.
Philipp Haas, EastPharma's Chairman and CEO, stated;
"Given the continued pressure on pharmaceutical prices through both increased competition as well as government measures, the performance of the second quarter is certainly very sound. To assess the operating improvement, it is best to look at the 26.2% sales increase in Turkish Lira terms. As prices on average declined even in TL, the 26.2% sales increase indicates a similar increase in both volumes produced and sold. As earlier indicated, the weaker Turkish Lira exercised continued margin pressure on the business and it was to a big extent due to the strong volume increase that we see a very muted effect of the weakness of the domestic currency. The other reason being our strict cost controls. The first half results show that we have put the business on a sustainable growth path, whereas, new products can be developed from internally generated resources and organic growth can be generated, even in an adverse environment which we currently experience."
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.