EASTPHARMA LTD.
London, 5 May 2016 - EastPharma (EAST LI) announces that it will be releasing its Q1 2016 sales performance and a review of its main subsidiary DEVA Holding's unaudited 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 May 2016.
A conference call to review the Q1 2016 sales performance will be hosted by the management of EastPharma at 12:00-noon London time on 6 May 2016 (07:00am New York / 01:00pm Zurich time / 02:00pm 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: 958508
For further information, please contact:
Investor Relations:
email: ir@eastpharma.com
MANAGEMENT COMMENTS ON EASTPHARMA'S SALES PERFORMANCE IN Q1 2016 (IFRS):
According to IFRS results, revenue in Q1 2016 was USD 63.7mn, up 9.6% from the same period in 2015 (USD 58.1mn). In Turkish Lira terms, revenue increased by 31.2% in the same period (net sales in Q1 2016 were TRY 187.4mn vs TRY 142.8mn net sales in Q1 2015).
The average US Dollar exchange rate strengthened by 19.7% against the Turkish Lira to 2.9409 in Q1 2016, which compares with an average rate of 2.4571 in Q1 2015. The USD/TRY exchange rate was 2.8334 on 31 March 2016, while it was 2.9076 on 31 December 2015, which corresponds to a decrease of 2.6%.
EastPharma's sales increase was mainly achieved by increased volumes in Deva's Human Pharma products business and veterinary products business. In Q1 2016 versus Q1 2015, Human Pharma revenues in US dollar terms increased by 8.8% (from USD 53.5mn to USD 58.2mn). Veterinary products revenues increased by 9.3% (from USD 4.3mn to USD 4.7mn).
MANAGEMENT COMMENTS ON CAPITAL MARKET BOARD (CMB) FINANCIAL PERFORMANCE FOR DEVA Q1 2016:
Deva's Capital Markets Board (CMB) results show revenue in Q1 2016 was TRY 190.8mn, up 31.6% from the same period in 2015 (TRY 145.0mn).
Deva's sales increase was mainly achieved by increased volumes in Deva's Human Pharma products business and veterinary products business. In Q1 2016 versus Q1 2015, Human Pharma revenue increased by 30.8% (from TRY 133.6mn to TRY 174.7mn).Veterinary business revenue increased by 31.4% compared to the Q1 2015 (from TRY 10.55mn to TRY 13.86mn).
Deva's gross profit in Q1 2016 was TRY 79.0mn, up from TRY 62.9mn in Q1 2015. The gross profit margin in Q1 2016 was 41% vs 43% in Q1 2015.
EBITDA in Q1 2016 was TRY 41.3mn vs TRY 32.6mn in Q1 2015 representing an EBITDA margin of 21.7% vs 22.5% in Q1 2015.
Operating expenses in Q1 2015 increased by 18.4%, from TRY 38.1mn to TRY 45.1mn. The ratio of operating expenses to revenues decreased to 23.7% from 26.3% compared to Q1 2015. Sales and marketing expenses in Q1 2016 were 13.1% of revenues; general administrative expenses were 6.5% of revenues; research and development expenses were 4.1% of revenues. These expenses were 16.0%, 6.2% and 4.1% in Q1 2015, respectively.
Finance expenses increased by TRY 1.7mn, from TRY 11.4mn to TRY 13.1mn in Q1 2016 compared to Q1 2015. Foreign exchange gains/losses on borrowings decreased by TRY 1.1mn, interest on borrowings and bond interests and expenses increased by TRY 2.6mn and other finance expenses increased by TRY 0.2mn. Average TRY interest rate increased to 13.4% in Q1 2016 from 10.3% in Q1 2015.
Receivable days at 31 March 2016 were 108 days, compared to 120 days as at 31 December 2015.
Philipp Haas, EastPharma's Chairman and CEO, stated;
"In the first quarter of 2016 we received small price increases for selected products, mainly for our medications with very low prices. On the other hand, competition continues to be fierce and we have recently seen government agencies targeting selective highly priced products for price decreases. Given that the majority of our products carries low prices, the overall effect was positive."
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.