German pharmaceutical and healthcare company STADA Arzneimittel AG (STDAF.PK) on Thursday backed its positive outlook for fiscal 2013 and 2014, after it reported a profit that more than tripled in fiscal 2012. The company also continued to propose a higher dividend for the year.
Commenting on the fiscal 2012 results, Chairman of the Executive Board Hartmut Retzlaff said, "Our success in financial year 2012 clearly proves how successful our strategy is with an intelligent product mix of generics and branded products on the one hand and increasing internationalization on the other. This allows us to consequently take advantage of growth opportunities in various product categories and geographical regions and minimize risks."
In fiscal 2012, net income surged to 86.5 million euros from 22.0 million euros last year. Earnings per share was 1.46 euros, up from 0.37 euros in the prior year.
Adjusted for one-time special effects and non-operational effects from the measurement of derivative financial instruments, net income edged up 1 percent to 147.9 million euros and adjusted earnings per share improved 0.4 percent to 2.50 euros.
Group sales, as announced on February 28, increased 7 percent to 1.84 billion euros from the previous year's 1.72 billion euros, benefited mainly by continued strong growth in emerging markets - especially in Russia.
Sales of the core segment Generics grew 2 percent and core segment Branded Products recorded sales growth of 26 percent.
The company noted that sales increased in three of the four market regions, with double-digit rate growth in the two largest market regions.
In the largest STADA market region Central Europe, sales climbed 15 percent, primarily based on the positive development in Italy, France, the United Kingdom and - due to acquisitions - Switzerland.
In the CIS/Eastern Europe region, sales increased 10 percent, while sales in Germany decreased 6 percent in view of the continued very difficult framework conditions in the German generics market. In Asia & Pacific, sales increased 1 percent.
In the year, EBITDA, a key earnings metric, climbed 45 percent to 323.8 million euros, and adjusted EBITDA grew 9 percent to 367.5 million euros. Adjusted EBITDA margin of 20 percent improved from prior year's 19.7 percent.
STADA said its Executive Board continues to propose a dividend of 0.50 euro per share for financial year 2012, a growth of 35 percent from last year.
Looking ahead, STADA continues to expect further growth in sales and earnings for 2013 and 2014. The Executive Board sees the opportunity for further growth in adjusted EBITDA in the high single-digit percent area and thereby achieving a new record value for 2013.
In addition, the company backed its long-term view for 2014, i.e. sales of approximately 2.15 billion euros, at an adjusted level, EBITDA of about 430 million euros and net income of approximately 215 million euros at minimum.
On Frankfurt's Xetra, STADA shares closed Wednesday's regular trading session at 29.72 euros, down 0.11 euros or 0.35 percent.
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