EASTPHARMA LTD.
London, 9 March 2016 - EastPharma (EAST LI) announces that it will be releasing its audited financial statements for the period 31 December 2015 and a review of its main subsidiary DEVA Holding's audited 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.eastpharma.com on 10 March 2016.
A conference call to review the financial performance for the period 31 December 2015 will be hosted by the management of EastPharma at 01:00pm London time on 10 March 2016 (08:00am New York / 02:00pm Zurich time / 03:00pm Istanbul time). The dial-in details are provided below.
Conference call:
Dial-in Number (UK): + 44 (0)207 1620 077
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: 957765
For further information, please contact:
Investor Relations:
email: ir@eastpharma.com
MANAGEMENT COMMENTS ON EASTPHARMA's FINANCIAL PERFORMANCE IN 12M 2015 (IFRS):
According to IFRS results, revenue in 12M 2015 was USD 209.9mn, down 0.3% from the same period in 2014 (USD 210.5mn). In Turkish Lira terms, revenue increased by 23.3% in the same period (net sales in 12M 2015 were TRY 567.5mn vs TRY 460.3mn net sales in 12M 2014).
The average US Dollar exchange rate strengthened by 24.4% against the Turkish Lira to 2.7191 in 12M 2015, which compares with an average rate of 2.1865 in 12M 2014. The USD/TRY exchange rate was 2.3189 on 31 December 2014, while it was 2.9076 on 31 December 2015, which corresponds to an increase of 25.4%.
EastPharma's sales decrease was mainly due to depreciation of the TRY against hard currencies. In 12M 2015 versus 12M 2014, Human Pharma revenues in US dollar terms increased by 0.5% (from USD 194.4mn to USD 195.3mn). Veterinary products revenues decreased by 9% (from USD 12.9mn to USD 11.8mn), but were up in TRY terms. In Turkish Lira terms, Human Pharma revenues increased by 23.3%, from TRY 460.3mn to TRY 567.5mn.
Deva's Capital Markets Board (CMB) results show revenue in 12M 2015 was TRY 576.4mn, up 23.2% from the same period in 2014 (TRY 467.9mn).
Deva's sales increase was mainly due to increased volumes in Deva's Human Pharma products business and veterinary products business. In 12M 2015 versus 12M 2014, Human Pharma revenue increased by 24.1% (from TRY 432.7mn to TRY 536.8mn).Veterinary business revenue increased by 13.0% compared to the 12M 2014 (from TRY 28.22mn to TRY 31.89mn).
EastPharma's gross profit in 12M 2015 was USD 92.4mn, up from USD 79.9mn in 12M 2014. The gross profit margin in 12M 2015 was 44% vs 38% in 12M 2014.
EBITDA in 12M 2015 was USD 46.5mn vs USD 32.6mn in 12M 2014 representing an EBITDA margin of 22.1% vs 15.5% in 12M 2014.
Operating expenses in 12M 2015 decreased by 1.6%, from USD 63.5mn to USD 62.5mn. The ratio of operating expenses to revenues decreased to 29.8% from 30.2% compared to 12M 2014. Sales and marketing expenses in 12M 2015 were 15.9% of revenues; general administrative expenses were 11.6% of revenues; research and development expenses were 2.3% of revenues. These expenses were 18.4%, 10.8% and 1.0% in 12M 2014, respectively.
Finance cost decreased by USD 5.0mn, from USD 40.3mn to USD 35.3mn in 12M 2015 compared to 12M 2014. Foreign exchange gain/losses on borrowings increased by USD 0.4mn, amortization of discount on receivables decreased by USD 3.8mn and interest on borrowings and bond interests and expenses decreased by USD 1.8mn. Average TRY interest rate increased to 11.3% in 12M 2015 from 10.7% in 12M 2014.
Receivable days at 31 December 2015 were 120 days, compared to 117 days as at 31 December 2014.
Philipp Haas, EastPharma's Chairman and CEO, stated;
"It is very encouraging that our organization was able to achieve a decent result despite the very challenging environment. Very tough price competition combined with a marked Turkish Lira devaluation has put great pressure on our gross profit margin and has led to stable sales in USD, while sales expressed in Turkish Lira grew by a strong 23.2%, which shows that there was strong unit growth in the last year. Our investments into R&D have continued to bear fruits, as new products with a better gross profit margin helped to dampen the negative effect of the weak Turkish Lira. Continued cost cutting programs as well as efficient marketing programs, have further helped to achieve an EBITDA margin in excess of 20%, which under the circumstances should be considered to be very respectable."
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.eastpharma.com.