ALAPIS Α.Β.Ε.Ε.

ALAPIS HOLDING INDUSTRIAL AND COMMERCIAL SOCIETE ANONYME OF PHARMACEUTICAL, CHEMICAL AND ORGANIC PRODUCTS S.A. ("Alapis" or the "Group") announces its consolidated financial results for the first half of 2009.

Consolidated Turnover increased by 13.3% in the first half of 2009 to 526.1 mil. euro compared to 464.4 mil. euro in the corresponding period last year. This increase is mainly attributable to the consolidation of PNG Gerolymatos Group following its acquisition in October 2008, which, according to its interim financial statements, had consolidated turnover of 118.8 mil. euro and consolidated Earnings before Tax, Interest and Depreciation (EBITDA) of 11.6 mil. euro in the first half of 2008, and Medimec, as well as the expansion of our generic pharmaceutical product portfolio. Growth in consolidated turnover in the health sector was partially offset by the decrease in turnover for the non-health sector, particularly detergents.
Consolidated Earnings before Tax, Interest and Depreciation (EBITDA) increased by 35.7% in the first half of 2009 to 171.0 mil. euro compared to 126.0 mil. euro in the first half of 2008. The EBITDA margin increased in the first half of 2009 to 32.5% of consolidated turnover compared to 27.1% in the first half of 2008. This increase in EBITDA margin is mainly attributable to a greater focus on the Health Sector and, in particular, the launch of 32 generic pharmaceutical formulations.
Earnings after Tax and Minorities (EaTM) from continuing operations for the first half of 2009 increased to 80.2 mil. euro, while total EATM was 76.1 mil. euro, an increase of 15.6% and 7.3%, respectively, from EaTM of 70.9 mil. euro in the first half of 2008
Health sector (Human and Veterinary)
Turnover in the health sector was 477.4 mil. euro in the first half of 2009, an increase of 24.9% compared to the corresponding period in 2008. Earnings before Tax, Interest and Depreciation (EBITDA) was 168.4 mil. euro in the first half of 2009, a 61.7% increase compared to the corresponding period in 2008. The strong performance of the Health Sector is largely attributable to the integration and consolidation of PNG Gerolymatos Group and Medimec, as well as the organic growth of sales of generic pharmaceutical products and expansion of the multinational representation activities of the Group.
Non-health sector (Cosmetics and Detergents)
Turnover for the non-health sector was 42.6 mil. euro for the first half of 2009 compared to 73.8 mil. euro for the first half of 2008, a decrease of 42.2%. This is largely attributable to the impact of the ongoing financial crisis and recessionary conditions on sales of detergents. Sales in the cosmetics sector for the first half of 2009 were approximately the same as in the corresponding period in 2008. Earnings before Tax, Interest and Depreciation (EBITDA) for this sector was 7.0 mil. euro in the first half of 2009, a decrease of 62.4% compared to the first half of 2008.
Discontinued operations (Organic products)
Following management's decision to terminate the Group's operations in the organic products sector, turnover decreased to 6.0 mil. euro in the first half of 2009 compared to 8.4 mil. euro in first half of 2008 and Earnings before Tax, Interest and Depreciation (EBITDA) decreased to (4.4) mil. euro compared to 3.2 mil. euro in the corresponding period for 2008.
Recent developments
Operational development:
Successful launch of 52 pharmaceutical product formulations - covering major therapeutic areas.
Signing of new contracts with multinational companies for the exclusive representation of their products in Greece, including vaccines.
Entering into agreements with two international cosmetic companies in the selective distribution and pharmacy channels.
Other Group activities and integration:
Expansion of R&D activities, especially the submission of two patents for new generic plus products.
The integration of PNG GEROLYMATOS has yielded synergies in procurement, cost of goods, and administration of pharmaceutical products.
The merger of OMIKRON MEDICAL, LABOMED AND BIOCHEM DIAGNOSTICS, into ALAPIS MEDICAL AND DIAGNOSTICS, and the acquisition of MEDIMEC have expanded opportunities in the Greek hospital sector as well as resulting in cost reductions within the Group.