STADA: Nine-Month Records Confirm Optimistic Outlook
11/18/2003 . Press Release
STADA achieved new records in sales and earnings in the first nine months of 2003. The strategic expansion of the international business was pushed ahead according to plan in Europe, North America and Asia. A record number of new product introductions made the development very successful. From this perspective, the Company anticipates that it will be able to meet its growth targets for the entire year and is also optimistic for further growth in 2004.
Consolidated sales rose by +17% to EUR 545.7 million in the first nine months year-on-year. Sales in the core segments (generics, branded products and special pharmaceuticals), which now account for 95% of total sales, increased by +25%.
In the first nine months of 2003 consolidated net income rose to EUR 34.8 million (up +21% compared to 1-9/2002), earnings before taxes (EBT) to EUR 60.3 million (up +26%) and earnings before interest and taxes (EBIT) to EUR 71.3 million (up +25%). EBITDA rose by +25% to EUR 97.1 million compared to the prior year period.
Earnings per share reached EUR 1.74 in the first nine months of 2003 (EUR 1.51 in 1-9/2002 with a roughly -5% lower average number of shares than in the prior year) and diluted earnings per share (EPS diluted pursuant to IAS 33.24) were EUR 1.65 (EUR 1.51).
The geographic breadth of the consolidated growth is pleasing from a strategic perspective. In the still young national generics markets in particular, it was in some cases again possible to achieve very high growth rates compared to the prior year period. Individually, STADA’s consolidated sales increased by +80% in Italy to EUR 44.0 million, by +119% in Spain to EUR 28.9 million and by +71% in France to EUR 25.5 million. Acquisitions also contributed in part to this result. In Germany, the most important European market, sales increased substantially compared to the prior year period: Generics sales rose by +21% to EUR 211.2 million in the first nine months of 2003 and total sales were up +15% to EUR 286.3 million.
In Europe, STADA’s consolidated sales for the first nine months declined only in the Netherlands. The -48% decline was in line with expectations and was due to the restructuring of the commercial business in that country completed in mid-2002. In all other European markets where STADA is active with its own sales companies, sales increased, in some cases quite significantly. Consolidated sales were up +21% in Belgium, +44% in Austria, +39% in Denmark and due to an acquisition +87% in the United Kingdom.
The growth of activities in the USA is also pleasing. On a dollar basis, sales there increased by +41% in the first nine months to USD 39.8 million. On a euro basis, the US growth comes to +17%. At EUR 35.6 million, US sales contributed 7% to consolidated sales in the first three quarters of 2003. In Asia, STADA increased its sales by +9% to EUR 12.2 million.
STADA’s successful product development continues to be an important driver of corporate growth. In the first nine months of 2003, a total of 241 new products were introduced Group-wide, once again including important generic products (e.g. with the active ingredient Simvastatin) soon after the expiration of the respective national patents. STADA expects to be able to profit from the well-filled product pipeline in the coming years as well. Among other things, it includes the biogeneric active ingredients Erythropoetin, Filgrastim and Interferon-ß as well as transdermal therapeutic systems (patches with active ingredients that are absorbed into the body through the skin).
Based on the previous excellent performance, the Executive Board is confident that STADA will reach the goal of growth in the double-digit percentage range in the current 2003 fiscal year. Accordingly, the Company is expected to achieve record sales and earnings in 2003 for the eighth time in a row.
“The additional capital resources of approximately EUR 265.8 million from the capital increase that was just successfully concluded will enable us to take advantage of the opportunities for additional acquisitions in the market in parallel with the anticipated organic growth,” says CEO Hartmut Retzlaff underscoring STADA’s further ambitions for growth. From the present perspective, the Executive Board of STADA thus anticipates being able to increase sales and earnings once again in the double-digit percentage range in the coming 2004 fiscal year - irrespective of expected health policy challenges in individual national markets.
You will find the complete report on the first nine months and the ad hoc release on the Internet at www.stada.com.
For more information, please contact:
STADA Arzneimittel AG
D-61118 Bad Vilbel
Tel.: +49 6101 603-113
Fax: +49 6101 603-506