RECORDATI : SALES GROWTH AND FURTHER MARGIN IMPROVEMENT IN THE FIRST QUARTER 2015


RECORDATI: SALES GROWTH AND FURTHER MARGIN IMPROVEMENT IN THE FIRST QUARTER 2015. SALES +5.9%, OPERATING INCOME +18.1%, NET INCOME +21.5%.

  • Consolidated revenues € 275.7 million, +5.9%.
  • EBITDA(1) € 82.8 million, +15.9%
  • Operating income € 73.5 million, +18.1%.
  • Net income € 52.0 million, +21.5%.
  • Net financial position(2):  net debt of € 136.8 million.
  • Shareholders' equity € 865.0 million.
  • Full year 2015 targets: sales of more than € 1,000 million, operating income around € 250 million and net income around € 175 million.

Milan, 5 May 2015 - The Board of Directors of Recordati S.p.A. approved the Group's consolidated results for the first quarter 2015 prepared in accordance with International Accounting Standards and International Financial Reporting Standards (IAS/IFRS) and in particular as per IAS 34 requirements for interim reporting. These financial statements will be available today at the company's offices and on the company's website www.recordati.com and can also be viewed on the authorized storage system 1Info (www.1Info.it).

Financial highlights

  • Consolidated revenues in the first quarter 2015 are € 275.7 million, up by 5.9% compared to the same period of the preceding year. International sales grow by 10.6%.
     
  • EBITDA(1), at 30.0% of sales, is € 82.8 million, an increase of 15.9% over the same period of the preceding year.
     
  • Operating income, at 26.6% of sales, is € 73.5 million, an increase of 18.1%.
     
  • Net income, at 18.8% of sales, is € 52.0 million, an increase of 21.5% over the first quarter of 2014.
     
  • Net financial position(2) at 31 March 2015 records a net debt of € 136.8 million. Shareholders' equity increases to € 865.0 million.

             
(1) Earnings before interest, taxes, depreciation and amortization.
(2) Cash and short-term financial investments less bank overdrafts and medium/long-term loans which include the measurement at fair value of hedging derivatives (fair value hedge).

Management Comments

"The first quarter results show continued revenue growth and further improvement of our profitability", declared Giovanni Recordati, Chairman and CEO. "For the full year 2015 we confirm our expectations to achieve sales of more than € 1,000 million, operating income of around € 250 million and net income of around € 175 million."

Conference call

Recordati will be hosting a conference call today 5 May 2015 at 4.00 pm Italian time (3.00 pm London time, 10.00 am New York time). The dial-in numbers are:

Italy                             +39 02 8020911, toll free 800 231525
UK                                +44 1 212818004, toll free 800 0156371
USA                             +1 718 7058796, toll free 855 2656958
France                        +33 170918704
Germany                   +49 65 255114450

Callers are invited to dial-in 10 minutes before conference time.  If conference operator assistance is required during the connection please digit * followed by 0 or call +39 02 8061371.  A recording of the conference call will be placed on the website www.recordati.com.

A set of slides which will be referred to during the call will be available on our website www.recordati.com under Investors/Company Presentations.

Recordati, established in 1926, is an international pharmaceutical group, listed on the Italian Stock Exchange (Reuters RECI.MI, Bloomberg REC IM, ISIN IT 0003828271), with a total staff of around 4,000, dedicated to the research, development, manufacturing and marketing of pharmaceuticals. Headquartered in Milan, Italy, Recordati has operations in the main European countries, in Russia, in other Central and Eastern European countries, in Turkey, in North Africa and in the United States of America.  An efficient field force of medical representatives promotes a wide range of innovative pharmaceuticals, both proprietary and under license, in a number of therapeutic areas including a specialized business dedicated to treatments for rare diseases. Recordati is a partner of choice for new product licenses for its territories. Recordati is committed to the research and development of new specialties within the urogenital therapeutic area and of treatments for rare diseases.  Consolidated revenue for 2014 was € 987.4 million, operating income was € 231.0 million and net income was € 161.2 million.

For further information:

Recordati website:  www.recordati.com

Investor Relations                                                                       Media Relations                   
Marianne Tatschke                                                                     Studio Noris Morano                                                           
(39)0248787393                                                                          (39)0276004736, (39)0276004745
e-mail: inver@recordati.it                                                          e-mail: norismorano@studionorismorano.com
                                                                    

Statements contained in this release, other than historical facts, are "forward-looking statements" (as such term is defined in the Private Securities Litigation Reform Act of 1995). These statements are based on currently available information, on current best estimates, and on assumptions believed to be reasonable. This information, these estimates and assumptions may prove to be incomplete or erroneous, and involve numerous risks and uncertainties, beyond the Company's control. Hence, actual results may differ materially from those expressed or implied by such forward-looking statements. All mentions and descriptions of Recordati products are intended solely as information on the general nature of the company's activities and are not intended to indicate the advisability of administering any product in any particular instance.

RECORDATI GROUP
Summary of consolidated results prepared in accordance with the International Accounting Standards and International Financial Reporting Standards (IAS/IFRS)
(thousands of €)

INCOME STATEMENT First Quarter 2015 First Quarter 2014 Change %
REVENUE 275,746 260,362 5.9
   Cost of sales (88,293) (86,995) 1.5
GROSS PROFIT 187,453 173,367 8.1
   Selling expenses (77,978) (75,509) 3.3
   Research and development expenses (19,892) (20,786) (4.3)
   General & administrative expenses (15,351) (14,462) 6.1
   Other income (expenses), net (761) (423) 79.9
OPERATING INCOME 73,471 62,187 18.1
   Financial income (expenses), net (3,728) (4,087) (8.8)
PRE-TAX INCOME 69,743 58,100 20.0
   Provision for income taxes (17,775) (15,334) 15.9
NET INCOME 51,968 42,766 21.5
Attributable to:      
Equity holders of the parent 51,964 42,764 21.5
Minority interests 4 2 100.0

EARNINGS PER SHARE First Quarter 2015 First Quarter 2014 Change %
Basic € 0.254 € 0.211 20.4
Diluted € 0.248 € 0.202 22.8

Earnings per share (EPS) are based on average shares outstanding during each year, 204,537,493 in 2015 and 202,722,546 in 2014, net of average treasury stock which amounted to 4,587,663 shares in 2015 and to 6,402,610 shares in 2014.
Diluted earnings per share is calculated taking into account stock options granted to employees.

COMPOSITION OF REVENUE First Quarter 2015 First Quarter 2014 Change %
Total revenue 275,746 260,362 5.9
Italy 61,883 67,036 (7.7)
International 213,863 193,326 10.6


RECORDATI GROUP
Summary of consolidated results prepared in accordance with the International Accounting Standards and International Financial Reporting Standards (IAS/IFRS)
(thousands of €)

ASSETS 31.3.2015 31.12.2014
     
Property, plant and equipment 94,602 92,273
Intangible assets 273,037 266,018
Goodwill 468,999 463,474
Equity investments 16,700 17,079
Non-current receivables 4,021 4,743
Deferred tax assets 33,357 33,021
TOTAL NON-CURRENT ASSETS 890,716 876,608
     
Inventories 142,492 141,223
Trade receivables 208,434 179,029
Other receivables 25,978 32,316
Other current assets 8,416 4,927
Fair value of hedging derivatives (cash flow hedge) 12,117 4,132
Short-term financial investments, cash and cash equivalents 187,056 136,990
TOTAL CURRENT ASSETS 584,493 498,617
TOTAL ASSETS 1,475,209 1,375,225

EQUITY AND LIABILITIES 31.3.2015 31.12.2014
     
Share capital 26,141 26,141
Capital in excess of par value 83,719 83,719
Treasury stock (28,767) (30,727)
Hedging reserve 4,863 (683)
Translation reserve (38,460) (56,314)
Other reserves 30,087 29,865
Retained earnings 788,425 627,240
Net income for the period 51,964 161,187
Interim dividend (53,080) (53,080)
GROUP SHAREHOLDERS' EQUITY 864,892 787,348
Minority interest 78 74
SHAREHOLDERS' EQUITY 864,970 787,422
     
Loans due after one year 287,563 286,202
Employees' termination pay 18,144 18,388
Deferred tax liabilities 24,212 21,553
Other non-current liabilities 3,129 3,102
TOTAL NON-CURRENT LIABILITIES 333,048 329,245
     
Trade payables 120,769 112,536
Other payables 71,426 64,886
Tax liabilities 18,424 12,541
Other current liabilities 770 903
Provisions 24,108 25,784
Fair value of hedging derivatives (cash flow hedge) 5,409 5,075
Loans due within one year 28,326 28,281
Bank overdrafts 7,959 8,552
TOTAL CURRENT LIABILITIES 277,191 258,558
TOTAL EQUITY AND LIABILITIES 1,475,209 1,375,225

DECLARATION BY THE MANAGER RESPONSIBLE FOR PREPARING THE COMPANY'S FINANCIAL REPORTS

The manager responsible for preparing the company's financial reports Fritz Squindo declares, pursuant to paragraph 2 of Article 154-bis of the Consolidated Law on Finance, that the accounting information contained in this press release corresponds to the document results, books and accounting records.


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RECORDATI: SALES GROWTH AND FURTHER MARGIN IMPROVEMENT IN THE IQ