Actavis increases net profit by 27% to EUR103 million in 2006
- Double digit growth in Central and Eastern Europe and North America -
Actavis Group ("ACT"), the international generic pharmaceuticals company, announces its results for the fourth quarter and full year ended 31 December 2006.
Highlights
" Reported revenue in the fourth quarter increased significantly by 80.0% to EUR350.2 million (4Q2005: EUR194.5 million) and by 138.2% to EUR1,379.9 (2005: EUR579.3 million), reflecting a first full year contribution from Alpharma's human generics division, acquired in December 2005
" Underlying revenue for the quarter increased by 17.1% (4Q 2005 pro forma: EUR299.1 million) and by 9.4% for the year (2005 pro forma: EUR1260.9 million) reflecting strong organic growth in Eastern Europe and North America
" On a divisional basis:
" Pro-forma sales in Central & Eastern Europe and Asia ("CEEA") increased to EUR148.6 million for the quarter (4Q 2005 pro forma: EUR113.2 million). Underlying growth was 31.3% in the quarter and 17.9% for the year.
" Pro-forma sales in North America increased 28.9% to EUR92.0 million for the quarter (4Q 2005 pro-forma: EUR71.4 million), representing underlying growth of 28.9% and 12.5% for the full year.
" Sales in Western Europe, Middle East and Africa increased 13.1% on a pro-forma basis to EUR76.9 million for the quarter (4Q 2005 pro forma: EUR68.0 million), but were unchanged for the year due to price erosion, especially in Germany.
" Third-party sales declined 25.5% to EUR33.8 million for the quarter and by 6.5% for the year due to pricing pressure following the recent health care reforms in Germany.
" The EBITDA margin was 19.9% for the quarter and 20.8% for the year as a whole. Excluding distribution in Bulgaria, the EBITDA margin was 21.7% for the quarter and 22.3% for the year.
" Net profit was EUR32.5 million for 4Q and EUR102.7 million for the full year. Underlying net profit increased by 1.5% for the quarter and increased 71.7% for the year (excluding one time costs related to the attempted acquisition of PLIVA and amortisation of purchased intangibles).
" Underlying diluted earnings per share was up 16.7% to EUR0.03190 for the full year.
" Actavis completed strategic acquisitions in the US, Russia and India, all of which are expected to deliver revenue growth and further reductions in supply chain costs going forward.
" The Group continued to leverage its strong pipeline through 113 product and market launches in the quarter, making a total of 376 launches for the year.
Three months ended 31 Dec. YTD 2006
Thousands of Euro 4Q 2006 4Q 2005 % Change 12M 2006 12M 2005 % Change
Total Revenues................. 350.183 194.547 80,0% 1.379.921 579.264 138,2%
Total expense................... -304.601 -160.037 90,3% -1.182.337 -472.751 150,1%
EBITDA............................ 69.548 52.156 33,3% 287.134 148.471 93,4%
EBITDA %........................ 19,9% 26,8% -25,9% 20,8% 25,6% -18,8%
Profit before tax................ 38.121 36.647 4,0% 127.257 91.479 39,1%
Underlying net profit.......... 38.827 38.254 1,5% 148.819 86.679 71,7%
Net profit.......................... 32.540 35.416 -8,1% 102.689 81.003 26,8%
Underlying diluted earnings
per share 0,00892 0,01121 -20,4% 0,03190 0,02734 16,7%
Diluted earnings per share.. 0,00700 0,01036 -32,5% 0,01804 0,02548 -29,2%
Actavis President & CEO, Robert Wessman, commented:
"This is another strong performance for the Group, where we have delivered on our EBITDA and net income targets for the year. We have continued to grow our business, both organically and through strategic acquisitions, achieving double-digit underlying growth in CEEA and the US and expanding our operations in key markets including Russia and Romania. The strength in our underlying business combined with our potential to drive further efficiencies across the Group, provides us with a solid platform for future growth."
