German pharmaceutical firm STADA Arzneimittel AG (STDAF.PK,STDAY.PK) reported Wednesday a higher second-quarter profit, as sales grew in emerging markets, particularly in Russia. The company confirmed its outlook for full year 2012 and its long-term targets for 2014.
Hartmut Retzlaff, chairman stated, "In consideration of the recently made acquisitions, we were able to expand our international business activities to a share of nearly three quarters of Group sales, and have thereby again made ourselves a bit more independent of the heavily regulated German market."
Second quarter net income distributable to the company's shareholders increased to 28.7 million euros or 0.48 euros per share from 26.25 million euros or 0.44 euros per share in the previous year. Earnings before interest, taxes, depreciation and amortization, or EBITDA, grew 13 percent to 83.5 million euros.
Sales for the quarter increased to 441.86 million euros from 411.43 million euros a year ago.
For the first half, the company posted net income distributable to shareholders of 48.15 million euros or 0.80 euros per share, lower than 56.07 million euros or 0.93 euros per share in the prior year.
The company said its first-half results were impacted by predominately planned burdening one-time special effects, particularly in the first quarter, from further implementation of its Group-wide cost efficiency program. Adjusted EBITDA increased 10 percent.
Group sales in the half year grew 7 percent to 885.24 million euros, driven by its international business sales growth of 9 percent. International business represented 74 percent of Group sales.
Looking ahead, the Executive Board expects a further clear increase in Group sales for 2012, including the recent acquisitions.
Despite the earnings burdening one-time special effects from the further implementation of the 'STADA - build the future' program, the board anticipates a very significant increase in reported net income for 2012.
In addition, the board expects continued growth in key earnings figures adjusted for one-time special effects, and sees an increase in the high single-digit percent area in EBITDA adjusted for one-time special effects.
The board affirmed its long-term forecast for 2014, expecting Group sales of about 2.15 billion euros, at an adjusted level, EBITDA of around 430 million euros and net income of about 215 million euros.
On Frankfurt's Extra, the shares are up 1.3 percent at 23.91 euros.
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by RTT Staff Writer
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