DGAP-News: STADA Arzneimittel AG / Key word(s): Half Year Results
STADA: Positive business development in H1/2011 - Increase of Group
sales and all key earnings figures - Outlook remains positive for
2011/2012
11.08.2011 / 07:25
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Important items at a glance
- Positive business development as expected in H1/2011:
- Group sales increases to EUR 829.7 million (+7%)
- EBITDA grows to EUR 153.5 million (+7%) and adjusted to EUR 160.2
million (+8%)
- Net income goes up to EUR 56.1 million (+12%)
- Earnings per share grows to EUR 0.95 (+12%)
- Further increase in international business activities
- Outlook remains positive for 2011 and 2012
Bad Vilbel, August 11, 2011 - Today, on August 11, 2011, STADA Arzneimittel
AG published the financial results for the first half of 2011. Accordingly,
both Group sales and all other key earnings figures increased.
'With pleasing rates of increase in sales and earnings, our business
continued to develop positively in the first half year of 2011. STADA's
international sales thereby grew by 15%, so that our activities outside
Germany now account for a total of 72% of overall sales', comments Hartmut
Retzlaff, STADA's Chairman of the Executive Board, satisfied with the
Group's development in the first six months of the current financial year.
'Furthermore, it is pleasing that we were able to sign the contracts on the
purchase of a branded product portfolio in Central and Eastern Europe as
well as in the Middle East in the second quarter, in order to also reduce
our historic dependence on the German market even further in the future',
says Retzlaff in conclusion.
Development of sales
Group sales rose by 7% in the half year under review to EUR 829.7 million
(1-6/2010: EUR 778.1 million) and thus reached a new record high for a
first half year of a STADA financial year. This increase is due to the
Group's international sales, which in the first six months of 2011
contributed a total of 72% to Group sales (1-6/2010: 67%) and recorded
growth of 15% to EUR 596.7 million (1-6/2010: EUR 518.2 million). When
effects on sales from changes in the Group portfolio and currency effects
are taken into account, Group sales increased by 6% in the first half year
of the current financial year compared to the corresponding period in the
previous year.
Sales of Generics, which continues to be the clearly larger core segment,
recorded an increase of 5% to EUR 572.1 million (1-6/2010: EUR 544.6
million) in the half year under review. Generics thereby contributed 69.0%
of Group sales in the first six months of the current financial year
(1-6/2010: 70.0%). Adjusted, Generics sales in the Group also increased by
5%.
Branded Products recorded a sales increase in the first half year of 2011
of 14% to EUR 231.0 million (1-6/2010: EUR 202.5 million). Branded Products
thus had a share of 27.8% in Group sales in the first half year of 2011
(1-6/2010: 26.0%). Adjusted sales of branded products in the Group also
rose by 14%.
With a contribution to Group sales of 95.9%, the focus of the STADA
business activities continued to be clearly on Europe in the first half
year of 2011. There, sales of STADA went up by 7% to EUR 796.0 million
(1-6/2010: EUR 742.3 million) in the reporting period. In Western Europe,
STADA posted an increase in sales in the first six months of 2011 of 2% to
EUR 579.8 million (1-6/2010: EUR 569.0 million), while in Eastern Europe,
the Group achieved a sales plus of 25% to EUR 216.2 million (1-6/2010: EUR
173.3 million) in the half year under review.
Earnings development
The STADA Group recorded increases in all reported key earnings figures in
the first half year of the current financial year.
Operating profit showed an increase of 9% to EUR 107.6 million in the first
six months of 2011 (1-6/2010: EUR 98.6 million). Net income increased by
12% in the same period to EUR 56.1 million (1-6/2010: EUR 50.0 million).
EBITDA increased in the reporting period by 7% to EUR 153.5 million
(1-6/2010: EUR 142.9 million) and thus reached a new record high for a
first half year of a STADA financial year.
After adjusting the key earnings figures for influences distorting the
period comparison resulting from one-time special effects and
non-operational effects from interest rate hedge transactions (first half
year of 2010: adjusted for one-time special effects as well as
non-operational effects from currency influences and interest rate hedge
transactions), adjusted operating profit increased in the first six months
of 2011 by 11% to EUR 121.4 million (1-6/2010: EUR 109.6 million). Adjusted
net income increased by 10% in the half year under review to EUR 65.5
million (1-6/2010: EUR 59.7 million). Adjusted EBITDA showed growth of 8%
to EUR 160.2 million in the first half year of the current financial year
(1-6/2010: EUR 148.6 million) and thus also reached a new record high for a
first half year of a STADA financial year.
One-time special effects amounted to a net burden on earnings of EUR 13.8
million before or EUR 10.5 million after taxes in the first six months of
2011 (1-6/2010: net burden on earnings due to one-time special effects in
the amount of EUR 13.4 million before or EUR 10.5 million after taxes).
Non-operational effects from interest rate hedge transactions amounted, in
the first half year of 2011, to a net relief on earnings of EUR 1.5 million
before or EUR 1.1 million after taxes, which resulted from the measurement
of these transactions (1-6/2010: net relief on earnings as a result of
non-operational effects from currency influences and interest rate hedge
transactions of EUR 1.3 million before or EUR 0.9 million after taxes).
Taking into account the adjustments resulted in the following development
of the reported and adjusted key earnings figures in the first half year of
2011 as compared to the corresponding period of the previous year:
|[![CDATA[|[pre|]]]|]
in EUR million 1-6/2011 1-6/2010 +/- %
Operating profit 107.6 98.6 +9%
Operating profit, adjusted 121.4 109.6 +11%
EBITDA 153.5 142.9 +7%
EBITDA, adjusted 160.2 148.6 +8%
EBIT 107.9 98.8 +9%
EBIT, adjusted 121.8 109.9 +11%
EBT 82.4 72.4 +14%
EBT, adjusted 94.7 84.5 +12%
Net income 56.1 50.0 +12%
Net income, adjusted 65.5 59.7 +10%
Earnings per share in EUR 0.95 0.85 +12%
Earnings per share in EUR, adjusted 1.11 1.02 +9%
|[![CDATA[|[/pre|]]]|]
Balance sheet and cash flow
As of June 30, 2011, the Group's equity-to-assets ratio, at 36.8% (December
31, 2010: 34.6%), continued to be clearly above the minimum ratio strived
for by the Executive Board. Net debt amounted to EUR 890.0 million as of
June 30, 2011 (December 31, 2010: EUR 864.1 million). The net debt to
adjusted EBITDA ratio amounted in the first six months of 2011 on linear
extrapolation of the adjusted EBITDA of the first half year on a full year
basis to 2.8 (1-6/2010: 3.0) and thus continued to be significantly below
the maximum value of 3 targeted by the Executive Board.
Free cash flow amounted to EUR -2.4 million in the reporting period
(1-6/2010: EUR 40.6 million). Free cash flow adjusted for payments for
significant acquisitions and proceeds from significant disposals amounted
to EUR 49.1 million in the half year under review (1-6/2010: EUR 64.0
million).
'In the first half year of 2011, we achieved a very satisfactory operating
profit. And the growth of 8% in adjusted EBITDA reflects our continued cost
savings in the Group', is the comment of Helmut Kraft, STADA's Chief
Financial Officer, on the pleasing earnings development in the reporting
period. 'In view of these results, we expect to achieve the outlook held
out for financial year 2011 of an increase in adjusted EBITDA in the high
single-digit percentage area', added Kraft.
Regional development in STADA's two largest national markets
In the first half year of 2011, STADA's two largest national markets
continued to be Germany and Russia.
In Germany, which remains STADA's largest national market, sales decreased,
as expected, in the first half year of 2011 by 10% to EUR 233.1 million
(1-6/2010: EUR 259.9 million). While the sales decrease in the German
market had still been in the double-digit percentage area at 11% in the
first quarter of 2011, sales only declined in the single-digit percentage
area by 9% in the second quarter of the current financial year. Overall,
STADA's German business activities contributed 28.1% to Group sales in the
first six months of 2011 (1-6/2010: 33.4%). The anticipated decrease in
sales in Germany was based on the ongoing difficult local framework
conditions for generics. Sales in the German Generics segment in the half
year under review thus went down by 14% to EUR 169.7 million (1-6/2010: EUR
196.7 million).
In the first half year of 2011, sales of branded products increased
slightly by 1% to EUR 62.8 million (1-6/2010: EUR 61.9 million). The total
share generated by STADA with branded products in the German market was 27%
in the first six months of 2011 (1-6/2010: 24%).
For financial year 2011, the Executive Board expects, with a sales strategy
that continues to be geared toward an appropriate local operating
profitability, further sales decreases in the generics area - despite
discount agreements won in the context of the sixth round of AOK tenders
and the fourth round of DAK tenders - and thus for the German business
overall.
In Russia, which continues to be the Group's second most important national
market in terms of sales, STADA achieved a significant increase in sales in
the first half year of 2011 in the amount of 27%, applying last year's
exchange rates. In euro, sales increased by a strong 25% to EUR 120.9
million (1-6/2010: EUR 96.8 million).
The two core segments had an approximately equal share of local Group sales
in the Russian market in the first six months of the current financial
year. With generics, the Group achieved sales growth in the amount of 7% to
EUR 52.8 million (1-6/2010: EUR 49.3 million) or 44% of STADA's sales in
Russia (1-6/2010: 51%). Sales of branded products increased significantly
by 43% to EUR 67.7 million (1-6/2010: EUR 47.5 million) or 56% of STADA's
sales in the Russian market (1-6/2010: 49%).
In financial year 2011, STADA expects continued strong sales growth in
local currency in Russia with operating profitability above Group average.
The sales and earnings contributions of STADA's business in both the
Russian market as well as at Group level will remain affected by the
development of the currency relation of the Russian ruble to the euro.
Product development
Research and development costs, which exclusively comprise costs for
product development at STADA in view of its business model focused on
off-patent active pharmaceutical ingredients, amounted to EUR 23.5 million
in the first six months of 2011 (1-6/2010: EUR 26.0 million). In addition,
development costs for new products in the amount of EUR 5.4 million were
capitalized in the reporting period (1-6/2010: EUR 6.8 million).
Overall, the Group launched 253 individual products worldwide in the first
half year of the current financial year (1-6/2010: 308 product launches) in
individual national markets.
'In view of our product pipeline, which remains well-filled, we expect to
launch numerous products in the market also in the financial year 2011
overall. The focus thereby continues to be on generics in EU countries',
comments Dr. Axel Müller, STADA's Chief Production and Development Officer,
optimistically on the continued strong potential of the STADA development
activities
Outlook
The Executive Board fundamentally confirms the positive outlook for the
future development of the STADA Group already given at the beginning of the
year. STADA's sales and earnings development will thereby continue to be
characterized in financial year 2011 and 2012 by differing and partially
contradictory factors in the various national markets. The overall sales
increase for the Group expected by the Executive Board, however, should
positively influence earnings development.
In addition, the Group expects positive effects on earnings as a result of
the implementation of the 'STADA - build the future' project for EBITDA
adjusted for one-time special effects and the correspondingly adjusted net
income to a significant extent from the current financial year 2011 and
mainly in 2012. By 2013, from today's perspective, project-related
investments of a total of approx. EUR 20 million as well as project-related
expenditure for special write-offs, personnel expenses and consultancy
services of a total of approx. EUR 50 million are expected (in each case
including the past financial year 2010). The Group will recognize each of
these project-related costs as one-time special effects according to
progression of the project. In the case of the sale of production
facilities in Ireland and Russia, currently evaluated in the context of
'STADA - build the future', a significant expense in the low net
double-digit million area would be expected for 2011.
Overall, STADA is well positioned for its successful development to
continue. For financial years 2011 and 2012, the Group expects further
growth in Group sales and earnings. In its overall assessment, the
Executive Board, from today's perspective, thereby sees the opportunity for
an increase in adjusted EBITDA in the high single-digit percentage range in
financial year 2011. This would mean that adjusted EBITDA in 2011 would
again reach a record value in STADA's Company history.
In addition, the Executive Board continues to hold to the long-term targets
envisaged for financial year 2014, according to which with Group sales of
approx. EUR 2.15 billion, at an adjusted level, EBITDA of approx. EUR 430
million and net income of approx. EUR 215 million should be reached.
Additional information:
STADA Arzneimittel AG / Corporate Communications / StadastraÃe 2-18 / D -
61118 Bad Vilbel /
Phone: +49 (0) 6101 603-113 / Fax: +49 (0) 6101 603-506 / E-mail:
communications@stada.de
Or visit us in the Internet at www.stada.com
End of Corporate News
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Language: English
Company: STADA Arzneimittel AG
StadastraÃe 2-18
61118 Bad Vilbel
Germany
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,
Listed: Regulierter Markt in Düsseldorf, Frankfurt (Prime
Standard); Freiverkehr in Berlin, Hamburg, Hannover,
München, Stuttgart
End of News DGAP News-Service
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135077 11.08.2011
DGAP-News: STADA: Positive business development in H1/2011 - Increase of Group sales and all key earnings figures - Outlook remains positive for 2011/2012
| Source: EQS Group AG