DGAP-News: STADA Arzneimittel AG / Key word(s): Miscellaneous
STADA Arzneimittel AG: Sales and earnings key figures in the first
quarter of 2015 not as significantly burdened by CIS crisis as
expected - Positive trend in Central Europe, Germany as well as
Asia/Pacific & MENA
07.05.2015 / 07:25
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Important items at a glance
- Group sales decrease by 4 percent - adjusted -4 percent
- Adjusted EBITDA declines by 19 percent
- Adjusted net income decreases by 28 percent
- Sales increase in Central Europe (+3 percent) - Germany (+1 percent) -
Asia/Pacific & MENA (+53 percent)
- Adjusted free cash flow improves to Euro 26.9 million
- Outlook for 2015 confirmed
STADA key figures
<pre>
1-3/2015 1-3/2014 +/-
Group sales Euro 486.2 million Euro 507.4 million -4%
EBITDA, reported Euro 79.2 million Euro 97.7 million -19%
EBITDA, adjusted Euro 92.6 million Euro 114.7 million -19%
Net income, reported Euro 21.2 million Euro 35.0 million -39%
Net income, adjusted Euro 37.9 million Euro 52.6 million -28%
Earnings per share Euro 0.35 Euro 0.58 -40%
Earnings per share, adjusted Euro 0.62 Euro 0.87 -29%
</pre>
Bad Vilbel, May 7, 2015 - In the first quarter of 2015, the STADA Group
was still confronted with challenging framework conditions particularly in
the market region CIS/ Eastern Europe. Furthermore, the Group had to report
one-time special effects in connection with currency translation effects
recorded in the income statement resulting from the weakness of the Russian
ruble and the strong devaluation of the Ukrainian hryvnia in the total
amount of Euro 11.1 million before or Euro 9.1 million after taxes.
"In view of the significant challenges, particularly in the market region
CIS/Eastern Europe, we expected a difficult business development for the
first quarter of 2015. In the market regions Central Europe, Germany and
Asia/Pacific & MENA, however, sales development was positive. Adjusted free
cash flow therefore improved substantially", says Hartmut Retzlaff,
Chairman of the Executive Board of STADA Arzneimittel AG.
Development of sales
Group sales in the first three months of 2015 recorded a decrease of 4
percent to Euro 486.2 million (1-3/2014: Euro 507.4 million).
Sales of the core segment Generics decreased by 3 percent to
Euro 289.8 million in the reporting period (1-3/2014: Euro 299.5 million),
primarily due to the development in the market region CIS/Eastern Europe
mainly in the markets of Russia and Serbia. Generics contributed 59.6
percent to Group sales (1-3/2014: 59.0 percent). Sales of the core segment
Branded Products declined by 6 percent to Euro 185.1 million in the
reporting period (1-3/2014: Euro 196.8 million). The primary reason for
this decrease was the development in the Russian market. Branded Products
contributed 38.1 percent to Group sales (1-3/2014: 38.8 percent).
Development of earnings
Both reported key earnings figures and adjusted key earnings figures
decreased considerably in the first three months of 2015. This development
was primarily due to negative currency effects from the considerable
weakness of the Russian ruble and the strong devaluation of the Ukrainian
hryvnia as well as an exceptionally strong comparative quarter in Ukraine,
which was characterized by pull-forward effects. In addition, the fourth
quarter of 2014 in Russia was marked by a high level of orders from
wholesalers and pharmacies in anticipation of expected price increases,
which had a curbing effect on sales in the first quarter of 2015.
Reported operating profit decreased in the first quarter of 2015 by 20
percent to Euro 50.4 million (1-3/2014: Euro 63.1 million). Reported EBITDA
showed a decline of 19 percent to Euro 79.2 million (1-3/2014: Euro 97.7
million). Reported net income decreased by 39 percent to Euro 21.2 million
(1-3/2014: Euro 35.0 million).
After adjusting the key earnings figures for influences distorting the
period comparison resulting from one-time special effects, adjusted
operating profit decreased by 22 percent in the reporting period to Euro
68.0 million (1-3/2014: Euro 87.6 million). Adjusted EBITDA declined by 19
percent to Euro 92.6 million (1-3/2014: Euro 114,7 million). Adjusted net
income decreased by 28 percent to Euro 37.9 million (1-3/2014: Euro 52.6
million).
The net debt to adjusted EBITDA ratio was at 3.6 in the reporting period on
linear extrapolation of the adjusted EBITDA of the first quarter of 2015 on
a full-year basis (1-3/2014: 3.1).
Development of the market regions
The development in the four STADA market regions was as follows:
In the market region Central Europe, sales increased in the first quarter
of 2015 - with varying development of the countries included - by 3 percent
to Euro 235.6 million (1-3/2014: Euro 229.4 million). While the United
Kingdom and Spain recorded growth in sales, sales decreased in Italy and
Belgium. Sales generated in this market region contributed 48.5 percent to
Group sales (1-3/2014: 45.2 percent).
In the market region Germany, sales increased slightly by 1 percent to Euro
127.2 million in the reporting period (1-3/2014: Euro 125.6 million). This
development also resulted regardless of the fact that export activities to
the MENA region are no longer disclosed in the market region Germany due to
the grouping together of activities from the MENA region and from the
former market region Asia & Pacific as of January 1, 2015. Overall, the
market region Germany contributed 26.1 percent to Group sales (1-3/2014:
24.8 percent).
In the market region CIS/Eastern Europe, sales in the first three months of
the current financial year declined by 13 percent applying the exchange
rates of the previous year, which was less pronounced than expected. As a
result of negative currency effects, sales in euro decreased by 32 percent
to Euro 89.0 million (1-3/2014: Euro 130.0 million). Sales generated in
this market region had a share of 18.3 percent in Group sales (1-3/2014:
25.6 percent). In Russia, sales decreased by 21 percent applying the
exchange rates of the previous year. As a result of a clearly negative
currency effect of the Russian ruble, sales declined in euro by 43 percent
to Euro 44.5 million (1-3/2014: Euro 78.2 million). In Serbia, sales
decreased by 18 percent applying the exchange rates of the previous year.
In euro, sales recorded a decrease by 21 percent to Euro 17.0 million as a
result of a negative currency effect of the Serbian dinar (1-3/2014:
Euro 21.6 million).
In the market region Asia/Pacific & MENA, sales in the first three months
of the current financial year increased by 53 percent to Euro 34.4 million
(1-3/2014: Euro 22.4 million). This development is primarily attributable
to growth in Vietnam, where sales rose regardless of increased price
pressure in the Vietnamese tender business. Furthermore, the increase is a
result of the grouping together of the former market region Asia & Pacific
and the activities of the MENA region. The sales contribution of this
market region to Group sales was at 7.1 percent (1-3/2014: 4.4 percent).
Development of cash flow
Cash flow from operating activities amounted to Euro 46.8 million in the
first quarter of 2015 (1-3/2014: Euro 35.8 million). Free cash flow was at
Euro 5.6 million (1-3/2014: Euro -97.4 million). Free cash flow adjusted
for payments for significant investments or acquisitions and proceeds from
significant disposals amounted to Euro 26.9 million (1-3/2014: Euro 18.9
million).
Development, production and procurement
Research and development costs amounted to Euro 16.2 million in the first
quarter of the current financial year (1-3/2014: Euro 13.9 million).
Worldwide, STADA launched a total of 157 individual products in the
reporting period (1-3/2014: 148 product launches).
Outlook
In the current financial year, the Group has been confronted with very
difficult framework conditions, especially as a result of the ongoing CIS
crisis. In light of this, for the outlook for 2015, the Executive Board
expects to be able to achieve slight overall growth in Group sales adjusted
for currency and portfolio effects. Due to the recent developments of the
Russian ruble and increased risks in connection with consumer mood and the
general market situation, however, it anticipates a decreased earnings
contribution from Russia. Taking these developments into account and based
on currency relations at the time the preliminary outlook was published,
the Executive Board expects a substantial decrease in adjusted EBITDA and
adjusted net income. The Executive Board expects the ratio of net debt,
excluding further acquisitions, to adjusted EBITDA to be at a level of
nearly 3 in 2015.
STADA adjustments
<pre>
1-3/2015
Net income, reported Euro
21.2
million
One-time effects
Burden from currency translation expenses recorded in the income Euro
statement resulting from the fluctuation of the Russian ruble as +9.1
well as further significant currencies of the market region CIS/ million
Eastern Europe
Burden from additional scheduled depreciation and other Euro
measurement effects due to purchase price allocations as well as +3.5
significant product acquisitions taking financial year 2013 as million
basis
Burden from effects from the measurement of derivative financial Euro
instruments and the underlying transactions +2.6
million
Burden from the disposal of the German logistics activities Euro
+1.5
million
Total one-time effects Euro
16.7
million
Net income, adjusted Euro
37.9
million
</pre>
Additional information for analysts:
STADA Arzneimittel AG / Investor Relations / StadastraÃe 2-18 / 61118 Bad
Vilbel - Germany / Phone: +49 (0) 6101 603-113 / Fax: +49 (0) 6101 603-215
/ E-mail: ir@stada.de
Additional information for journalists:
STADA Arzneimittel AG / Media Relations / StadastraÃe 2-18 / 61118 Bad
Vilbel - Germany / Phone: +49 (0) 6101 603-165 / Fax: +49 (0) 6101 603-215
/ E-mail: press@stada.de
Or visit us in the Internet at http://www.stada.com.
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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,
Indices: MDAX
Listed: Regulated Market in Dusseldorf, Frankfurt (Prime
Standard); Regulated Unofficial Market in Berlin, Hamburg,
Hanover, Munich, Stuttgart
End of News DGAP News-Service
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353661 07.05.2015
DGAP-News: STADA Arzneimittel AG: Sales and earnings key figures in the first quarter of 2015 not as significantly burdened by CIS crisis as expected - Positive trend in Central Europe, Germany as well as Asia/Pacific & MENA
| Source: EQS Group AG