LAVIPHARM S.A.
Announcement
Peania, March 31st, 2008 - Lavipharm's consolidated sales show a steady growth of 7.8% in 2007, reaching Euro 248.3 million from Euro 230.3 million in 2006, mainly due to significant growth in local sales (+17.2%).
The parent company's Lavipharm SA turnover also noted an increase of 15.8%, as a result of the increase in pharmaceutical sales. It is worth mentioning that Lavipharm Hellas SA, the subsidiary active in the pharmaceutical area, presented a significant turnover increase of 50%, mainly attributed to the launch of new pharmaceutical products in the Greek market.
Earnings before interest, taxes, depreciation and amortization (EBITDA) decreased to Euro 11.0 million from Euro 20.6 million in 2006, as a result of a 38% reduction of extraordinary income and a 27% increase in distribution expenses, reflecting investment for future sales growth. In addition, R&D expenses increased by 131%, as they include a Euro 2.5 million provision for inventory write-off in the U.S.A.. This provision was made taking into account the postponed launch of the fentanyl transdermal system in the USA, which resulted from the difference of opinion with the manufacturing contractor. The subsidiary company has initiated legal proceedings against the manufacturer, while it evaluates its alternatives; either assigning the production to another manufacturing contactor or manufacturing the product in its own facilities in the USA.
Due to increased financial expenses, which amounted to Euro 16.6 million versus Euro 11.1 million in 2006, the Group presented losses before taxes and minority interests of Euro 10.2 million. It is worth mentioning that following bank debt reduction by 15.7% from the funds raised during the recent Share Capital Increase, financial expenses are expected to be significantly reduced in the future.
Results after taxes show a loss of Euro 11.4 million, as they were affected by a tax charge of Euro 2.3 million due to a tax audit completed in June 2007 and concerned previous fiscal years (2003-2005). Finally, results after taxes and minority interests presented losses of Euro 9.3 million versus Euro 2.7 profits in 2006.
Lavipharm is an integrated Group engaged in the research, development, manufacturing, marketing, sales, wholesaling, logistics, and retailing of pharmaceutical, cosmetic and consumer health products in Greece with a strong international activity.
The parent company's Lavipharm SA turnover also noted an increase of 15.8%, as a result of the increase in pharmaceutical sales. It is worth mentioning that Lavipharm Hellas SA, the subsidiary active in the pharmaceutical area, presented a significant turnover increase of 50%, mainly attributed to the launch of new pharmaceutical products in the Greek market.
Earnings before interest, taxes, depreciation and amortization (EBITDA) decreased to Euro 11.0 million from Euro 20.6 million in 2006, as a result of a 38% reduction of extraordinary income and a 27% increase in distribution expenses, reflecting investment for future sales growth. In addition, R&D expenses increased by 131%, as they include a Euro 2.5 million provision for inventory write-off in the U.S.A.. This provision was made taking into account the postponed launch of the fentanyl transdermal system in the USA, which resulted from the difference of opinion with the manufacturing contractor. The subsidiary company has initiated legal proceedings against the manufacturer, while it evaluates its alternatives; either assigning the production to another manufacturing contactor or manufacturing the product in its own facilities in the USA.
Due to increased financial expenses, which amounted to Euro 16.6 million versus Euro 11.1 million in 2006, the Group presented losses before taxes and minority interests of Euro 10.2 million. It is worth mentioning that following bank debt reduction by 15.7% from the funds raised during the recent Share Capital Increase, financial expenses are expected to be significantly reduced in the future.
Results after taxes show a loss of Euro 11.4 million, as they were affected by a tax charge of Euro 2.3 million due to a tax audit completed in June 2007 and concerned previous fiscal years (2003-2005). Finally, results after taxes and minority interests presented losses of Euro 9.3 million versus Euro 2.7 profits in 2006.
Lavipharm is an integrated Group engaged in the research, development, manufacturing, marketing, sales, wholesaling, logistics, and retailing of pharmaceutical, cosmetic and consumer health products in Greece with a strong international activity.