EASTPHARMA LTD.
London, 5 November 2015 - EastPharma (EAST LI) announces that it will be releasing its 9M 2015 sales performance and a review of its main subsidiary DEVA Holding's financial statements for the related period.
Management comment on the sales performance of EastPharma is provided in the attachment, and a presentation of the results will be available on the EastPharma website www.eastpharma.com on 6 November 2015.
A conference call to review the 9M 2015 sales performance will be hosted by the management of EastPharma at 03:00pm London time on 6 November 2015 (10:00am New York / 04:00pm Zurich time / 06:00pm Istanbul time). The dial-in details are provided below.
Conference call:
Dial-in Number (UK): + 44 (0)207 1620 177
Dial-in Number (US): + 1 334 323 6203
Dial-in Number (Switzerland): + 41 (0)434 5692 63
Dial-in Number (Germany): + 49 (0)695 8999 0509
Conference ID: 956003
For further information, please contact:
Investor Relations:
email: ir@eastpharma.com
MANAGEMENT COMMENTS ON EASTPHARMA'S SALES PERFORMANCE IN 9M 2015 (IFRS):
According to IFRS results, revenue in 9M 2015 was USD 158.3mn, up 1.1% from the same period in 2014 (USD 156.6mn). In Turkish Lira terms, revenue increased by 23.6% in the same period (Net sales in 9M 2015 were TRY 418.5mn vs TRY 338.6mn net sales in 9M 2014).
The average US Dollar exchange rate strengthened by 22.9% against the Turkish Lira to 2.6562 in 9M 2015, which compares with an average rate of 2.1618 in 9M 2014. The USD/TRY exchange rate was 2.3189 on 31 December 2014, while it was 3.0433 on 30 September 2015, which corresponds to an increase of 31.2%.
EastPharma's sales increase in US Dollar terms was mainly due to increased volumes in Human Pharma products business. In 9M 2015 versus 9M 2014, Human Pharma revenues in US Dollar terms increased by 1.9% (from USD 143.9mn to USD 146.6mn). In Turkish Lira terms, Human Pharma revenues increased by 24.5%, from TRY 311.1mn to TRY 387.2mn.
MANAGEMENT COMMENTS ON CAPITAL MARKET BOARD (CMB) FINANCIAL PERFORMANCE FOR DEVA 9M 2015:
Deva's Capital Markets Board (CMB) results show revenue in 9M 2015 was TRY 425.5mn, up 23.6% from the same period in 2014 (TRY 344.2mn).
Deva's sales increase was mainly due to increased volumes in Deva's Human Pharma products business. In 9M 2015 versus 9M 2014, Human Pharma revenue increased by 24.5% (from TRY 316.7mn to TRY 394.2mn).Veterinary business revenue increased by 17.8% compared to the 9M 2014 (from TRY 21.49mn to TRY 25.32mn).
Deva's gross profit in 9M 2015 was TRY 175.3mn, up from TRY 119.8mn in 9M 2014. The gross profit margin in 9M 2015 was 41% vs 35% in 9M 2014.
EBITDA in 9M 2015 was TRY 93.5mn vs TRY 51.5mn in 9M 2014 representing an EBITDA margin of 22.0% vs 15.0% in 9M 2014.
Operating expenses in 9M 2015 increased by 19.5%, from TRY 89.3mn to TRY 106.7mn. The ratio of operating expenses to revenues decreased to 25.1% from 25.9% compared to 9M 2014. Sales and marketing expenses in 9M 2015 were 15.8% of revenues; general administrative expenses were 7.5% of revenues; research and development expenses were 1.8% of revenues. These expenses were 18.4%, 6.6% and 1.0% in 9M 2014, respectively.
Finance expense/income increased by TRY 4.7mn, from TRY 32.6mn to TRY 37.3mn in 9M 2015 compared to 9M 2014. Foreign exchange gain/losses on borrowings increased by TRY 2.7mn and interest on borrowings and bond interests and expenses increased by TRY 2.0mn. Average TL interest rate increased to 10.6% in 9M 2015 from 10.9% in 9M 2014.
Receivable days at 30 September 2015 were 119 days, compared to 117 days as at 31 December 2014.
Philipp Haas, EastPharma's Chairman and CEO, stated;
"It is very good to see a strong 3rd quarter result, especially given the very adverse environment with a weak Turkish Lira, relatively high interest rates and intensive competition. Increased spending on R&D is starting to pay back in the form of new products with higher gross profit margins."
EastPharma Ltd - a company active in the manufacturing and marketing of pharmaceutical products in Turkey and in other regional markets; for further information please visit
www.eastpharma.com.