STADA Arzneimittel AG / Quarter Results
14.05.2009
Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Important items at a glance
* As expected, decrease in Q1/2009, but in the upper planning area:
o Group sales EUR 375.9 million (-6%, adjusted +4%)
o Earnings before interest, taxes, depreciation and amortization
(EBITDA) EUR 67.5 million (-12%), adjusted EBITDA EUR 67.6 million (-11%)
o Net income EUR 24.1 million (-20%), adjusted net income EUR 28.3
million (-13%)
* Sales growth core segments +1% (adjusted +5%) with Generics on the level
of the previous year (adjusted +3%) and Branded Products +4% (adjusted
+10%)
* Slight sales increase in the two largest markets Germany (+1%) and
Russia (+28% in local currency and +3% in euro)
* Improved cash flow from operating activities EUR 37.9 million (previous
year EUR -4.2 million, adjusted EUR +11.8 million)
* Confirmation of open outlook: Growth on annual basis remains possible -
minimum goal of adjusted EBITDA of EUR 250 million
With the key figures in the interim report on the first three months of
2009 published today, May 14, 2009, by STADA Arzneimittel AG, the Group
recorded the - due to the especially difficult framework conditions of the
global financial and economic crisis - expected decrease in sales and
earnings; the results achieved were, however, in the upper area of the
current planning corridor of the Group.
Against this backdrop, STADA's Chairman of the Executive Board, Hartmut
Retzlaff, comment on STADA's outlook for the current fiscal year: 'With the
expected revival of business in the second half year, the sales and
earnings level from the previous year can overall still be achieved and
even exceed in fiscal year 2009 - despite the expected decrease in sales
and earnings in the first half year of 2009.' At the same time, Retzlaff
confirmed the minimum goal of adjusted EBITDA of EUR 250 million for fiscal
year 2009.
Sales and earnings development of the STADA Group
Group sales decreased, as expected, by 6% to EUR 375.9 million (1-3/2008:
EUR 399.0 million) in the reporting quarter. Group sales, however, adjusted
for effects from acquisitions and disposals, sale and discontinuation of
business activities as well as currency effects grew in the first quarter
of 2009 by 4% as compared to the corresponding quarter in the previous
year.
Effects from acquisitions and disposals, sale and discontinuation of
business activities as well as currency effects thereby curbed Group sales
as compared to the previous year by a total of 10 percentage points; these
effects have been subtracted from the adjusted sales figures disclosed in
the following. These adjustments are divided as follows:
* Effects from acquisitions and disposals as well as sale and
discontinuation of business activities thereby subdued the sales
development as compared to the previous year by EUR 22.2 million or 6
percentage points (highest single effect: disposal of non- core business in
the United Kingdom with EUR 23.0 million sales lost).
* Currency influences curbed the sales development in the first quarter of
2009 by a total of 4 percentage points.
With EUR 269.5 million (1-3/2008: EUR 269.4 million), sales of Generics
(share in Group sales in Q1/2009: 71.7%), which continue to be the
significantly larger core segment, were at the level of the same quarter of
the previous year.
Branded Products (share in Group sales in Q1/2009: 24.5%), STADA's second
core segment, reached a sales plus of 4% to EUR 92.0 million in the first
quarter of 2009 (1-3/2008: EUR 88.6 million); the adjusted sales plus was
here 10%. So far, the current financial and economic crisis has thereby not
resulted in a curbed demand for the Group's branded products, which are
mainly paid by the patients themselves.
Overall, sales of the core segments increased by 1% or adjusted by 5% in
the first quarter of 2009 as compared to the corresponding quarter of the
previous year.
The earnings level of the fist quarter of 2009, too, was, as expected,
below the level of the same quarter of the previous year, but was at the
same time also in the upper area of the Group's current planning corridor.
The key earnings figures for the first three months of 2009 include both
one-time special effects and non-operational earnings-influencing effects
from currency influences and interest rate hedge transactions, which
resulted in the first quarter of 2009 in a net burden on the earnings
development of EUR 5.9 million before taxes or EUR 4.1 million after taxes
(netted burden from these effects in the previous year EUR 3.2 million
before taxes or EUR 2.0 million after taxes); these effects have already
been subtracted from the adjusted key earnings figures disclosed in the
following.
Net income decreased by 20% to EUR 24.1 million in the reporting quarter
(1-3/2008: EUR 30.3 million), adjusted net income by 13% to EUR 28.3
million (1-3/2008: EUR 32.3 million).
Earnings per share in the first three months of the current fiscal year
amounted to EUR 0.41 (1-3/2008: EUR 0.52), adjusted earnings per share were
EUR 0.48 (1-3/2008: EUR 0.55). Here, due to the exercise of options since
then, an increase in the average number of STADA shares of 0.1% in the
first quarter of 2009 as compared to the corresponding period in the
previous year must be taken into consideration. Diluted earnings per share
amounted to EUR 0.41 in the reporting period (1-3/2008: EUR 0.50), adjusted
diluted earnings per share were EUR 0.48 (1-3/2008: EUR 0.53).
The other earnings figures recorded the following decreases in the first
quarter of 2009 as compared to the same quarter of the previous year:
operating profit by 14% to EUR 48.6 million (1-3/2008: EUR 56.6 million),
adjusted operating profit by 15% to EUR 50.3 million (1-3/2008: EUR 58.9
million), earnings before taxes (EBT) by 25% to EUR 32.2 million (1-3/2008:
EUR 42.8 million), adjusted earnings before taxes by 17% to EUR 38.0
million (1-3/2008: EUR 46.0 million), earnings before interest and taxes
(EBIT) by 15% to EUR 48.2 million (1-3/2008: EUR 56.7 million), adjusted
earnings before interest and taxes by 14% to EUR 49.9 million (1-3/2008:
EUR 57.9 million), earnings before interest, taxes, depreciation and
amortization (EBITDA) by 12% to EUR 67.5 million (1-3/2008: EUR 76.5
million) and adjusted earnings before interest, taxes, depreciation and
amortization by 11% to EUR 67.6 million (1-3/2008: EUR 75.8 million).
Regional development in the STADA Group
In Europe, sales of the STADA Group fell by a total of 7% to EUR 360.9
million (1-3/2008: EUR 386.5 million) in the first quarter of 2009,
adjusted, however, it increased by 3% as compared to the previous year.
Sales generated by STADA in Europe had a share in Group sales of 96.0%
(1-3/2008: 96.9%) in first three months of the current fiscal year.
In Western Europe, sales thereby declined by 6% to EUR 282.5 million
(1-3/2008: EUR 299.5 million) - primarily resulting from disposal of
non-core business in the United Kingdom; adjusted Group sales therefore
increased by 2% here. Hence, Western European sales had a share in Group
sales of 75.1% (1-3/2008: 75.1%) in the reporting period. In Eastern
Europe, the so called CEE countries, the Group recorded a drop in sales of
10% to EUR 78.5 million (1-3/2008: EUR 87.0 million), in particular due to
currency influences. Adjusted sales, however, increased by 6%. Eastern
European sales had a share in Group sales of 20.9% (1-3/2008: 21.8%) in the
first quarter of 2009.
In Asia, sales of the Group in the first three months of 2009 were at the
level of the previous year with EUR 10.9 million (1-3/2008: EUR 10.9
million), adjusted 4% higher. Thus, STADA recorded a sales share of 2.9%
(1-3/2008: 2.7%) in Asia in the reporting quarter. In the rest of the
world, Group sales rose by 159% to EUR 4.1 million (1-3/2008: EUR 1.6
million) in the first quarter of 2009; adjusted sales growth was at 317%
here.
In Germany, which continues to be STADA's biggest national market, the
Group recorded a slight sales growth of 1% to EUR 147.9 million in the
reporting period (1-3/2008: EUR 146.1 million). Thus the share of German
business activities in Group sales amounted to 39.3% in the reporting
quarter (1-3/2008: 36.6%).
In Germany, the Branded Products segment grew in the first quarter of 2009
by 3% to EUR 34.2 million (1-3/2008: EUR 33.3 million).
In the Generics segment, the Group continued to be confronted with
difficult framework conditions in Germany such as a continuing high margin
pressure due to discount agreements between suppliers and health insurance
organizations and a clearly more unfavorable price and discount level than
in the comparative quarter of the previous year. Nevertheless, the STADA
Group's Generics sales in Germany increased by 3% to EUR 112.9 million in
the first three months of the current fiscal year (1-3/2008: EUR 109.4
million).
Distinct growth impulses thereby continued to be given by the largest of
the Group-owned sales labels in the German generics market, ALIUD PHARMA.
With sales growth of 21% to EUR 66.5 million (1-3/2008: EUR 55.1 million)
ALIUD PHARMA further strengthened its market position as the third largest
label in the German generics market. The label STADApharm, however, was not
yet able to fully offset the new aggressive price policy launched at the
beginning of the year by means of growth in units sold. As a consequence,
in the first quarter of the current fiscal year sales of this label, as
expected, still clearly decreased and went down by 20% to EUR 39.9 million
(1-3/2008: EUR 50.0 million).
Overall, pursuant to information from IMS Health the STADA Group further
increased its market share by volume in the German generics market to 13.2%
in the first quarter of 2009 (corresponding period in the previous year:
12.3%).
STADA expects a revival in demand in Germany in the second half of the
fiscal year, which shall be driven by, among other things, important new
product launches. Thus, in the current second quarter, in time with the
patent expiry on May 7, 2009 ALIUD PHARMA as well as STADApharm were able
to complement their comprehensive product portfolio with Pantoprazole
generics in all current strengths and package sizes (see 'Research and
development').
In the tenders for new discount agreements made by the Allgemeinen
Ortskrankenkassen (AOK) in the second half of 2008, STADA, from the
Executive Board's perspective, achieved a strong result with a total of 40
new discount agreements (16 for ALIUD PHARMA and 24 for STADApharm).
Thereby, the two STADA sales companies received awards which account for a
total of approx. 18% of the annual sales potential intended for awarding
(STADA's previous market share: below 12%) (STADA estimate at ex-factory
prices at the time of the preliminary awards in 12/2008). The new AOK
discount agreements open up the opportunity for STADA to gain further
market shares in the German generics market, but with reduced margins. All
new discount agreements from these AOK tenders will now take effect as of
June 1, 2009 after lengthy examinations with regard to tender regulations.
In Russia, STADA's second most important national market, STADA, in view of
the difficult economic environment there recorded very pleasing sales
growth of 28% in local currency; in euro sales only increased by 3% due to
the weak ruble; the Russian business thus contributed EUR 36.2 million
(1-3/2008: EUR 35.1 million) to Group sales with an operating profitability
that continues to be above Group average.
In Serbia, however, the sales development in the first quarter of 2009
showed a decrease. Here, STADA's sales decreased by 41% in local currency
in the first three months of the current fiscal year and in euro by 49% to
EUR 16.8 million (1-3/2008: EUR 32.7 million) largely due to local
weaknesses in demand in the course of the global financial and economic
crisis. Moreover, in January 2009 the local business was severely affected,
as is known, both in sales and in production by the local natural gas
shortage due to the gas dispute between Russia and Ukraine. As a result of
the reduced sales basis, the operating profitability in Serbia and with
this also in the Serbian subgroup - contrary to previous expectations - was
not above, but approximately only in Group average in the first quarter of
2009.
Research and development
Research and development costs amounted to EUR 11.1 million in the
reporting period (1-3/2008: EUR 10.5 million). Overall, STADA launched 121
individual products worldwide in the first three months of the current
fiscal year (1-3/2008: 124 product launches) in individual national
markets.
In the current second quarter, STADA moreover launched first generics with
the active ingredient Pantoprazole at the same time as patent expiry in a
total of five European countries so far.
In addition, in the first quarter of 2009 STADA has begun preparatory work
for the development of further biosimilar products from the product
category of monoclonal antibodies, reviewing at the same time various
financing models; with this, the development pipeline is to be expanded by
important biopharmaceuticals at an early stage.
Financial position and cash flow
In the Executive Board's view, the STADA Group's financial situation
continues to be stable. The equity-to-assets ratio was 34.6% on the
reporting date March 31, 2009 (December 31, 2008: 34.0%) and thereby
remains clearly, from the Executive Board's perspective, in a satisfying
area of above 30%.
Net debt amounted to EUR 1,007.7 million on March 31, 2009 (December 31,
2008: EUR 1,015.7 million) and remains mainly financed via long-term
promissory notes from various international and national banks with
maturities in the area of 2010-2015. In addition STADA continues to have
open credit lines of approx. EUR 500 million available - also for financing
acquisitions.
The cash flow from operating activities improved to EUR 37.9 million in the
first three months of the current fiscal year (1-3/2008: EUR -4.2 million,
adjusted for influences from other accounting periods at that time EUR
+11.8 million).
Acquisitions and Disposals
Against the backdrop of the current global financial and economic crisis
STADA continued to pursue the cautious acquisition policy in the first
quarter of 2009, still applying particularly stringent standards in terms
of profitability and appropriateness of the purchase price. Thus, in the
first quarter of 2009 only one small acquisition in Denmark as well as an
additional increase of shareholdings in BIOCEUTICALS Arzneimittel AG was
carried out with a total investment volume of EUR 2.5 million.
Outlook
The Executive Board confirms the outlook and risk report published for the
Group in STADA's Annual Report 2008.
Accordingly, the further development of the STADA Group is, on the one
hand, characterized by the existing structural and operative growth
opportunities, on the other hand, however, there is a continued
operationally challenging environment and significant burdens from the
global financial and economic crisis to consider.
The Executive Board continues to constantly align the Group to this
operationally challenging environment. Against this backdrop the Executive
Board continues to deem STADA's operative business model sustainable and
viable for the future and sees, from today's perspective, the fundamental
chance to achieve growth in terms of sales and net income in the years to
come regardless of conditions which remain challenging.
Whether STADA, however, under the especially difficult framework conditions
of the global financial and economic crisis can also grow in fiscal year
2009 is, from today's perspective, still open and depends, in addition to
the operative development in important key markets such as Germany, Russia
and Serbia, also to a significant degree on non-operational factors like
interest rate level and currency relations.
From today's perspective of the Executive Board, the minimum goal of
adjusted EBITDA of EUR 250 million in the STADA Group for fiscal year 2009
should be achievable. Regardless of the expected sales and earnings
decrease in the first half of 2009, the Executive Board continues to see
the opportunity that STADA, with the expected revival of business in the
second half year, can overall still achieve and even exceed the sales and
earnings level from the previous year in fiscal year 2009.
Further information:
STADA Arzneimittel AG / Corporate Communications / Stadastraße 2-18 /
61118 Bad Vilbel / Germany
Phone: +49 (0) 6101 603-113 / Fax: +49 (0) 6101 603-506 /
E-Mail: communications@stada.de
Or visit our website at www.stada.com.
DGAP 14.05.2009
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Language: English
Issuer: STADA Arzneimittel AG
Stadastraße 2-18
61118 Bad Vilbel
Deutschland
Phone: +49 (0)6101 603- 113
Fax: +49 (0)6101 603- 506
E-mail: communications@stada.de
Internet: www.stada.de
ISIN: DE0007251803, DE0007251845,
WKN: 725180, 725184,
Indices: MDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard), Düsseldorf;
Freiverkehr in Berlin, Hannover, Hamburg, München, Stuttgart
End of News DGAP News-Service
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DGAP-News: STADA Q1/2009 in the upper planning area: Sales EUR 375.9 million; EBITDA EUR 67.5 million; net income EUR 24.1 million
| Source: EQS Group AG