London, 11 Aug 2016 - EastPharma (EAST LI) announces that it will be releasing its financial statements for the period 30 June 2016 and a review of its main subsidiary DEVA Holding's financial statements for the related period.
Management comment on the financial performance of EastPharma is provided in the attachment, and a presentation of the results will be available on the EastPharma website www.eastpharma.com on 12 Aug 2016.
A conference call to review the H1 2016 financial performance will be hosted by the management of EastPharma at 12:00-noon London time on 12 August 2016 (07:00am New York / 01:00pm Zurich time / 02:00pm Istanbul time). The dial-in details are provided below.
Dial-in Number (UK): + 44 (0)207 1620 177
Dial-in Number (US): + 1 646 934 6795
Dial-in Number (Switzerland): + 41 (0)434 5692 63
Dial-in Number (Germany): + 49 (0)695 8999 0509
Conference ID: 959719
For further information, please contact:
MANAGEMENT COMMENTS ON EASTPHARMA's FINANCIAL PERFORMANCE IN 6M 2016 (IFRS):
According to IFRS results, revenue in H1 2016 was USD 124.3mn, up 10.1% from the same period in 2015 (USD 112.9mn). In Turkish Lira terms, revenue increased by 25.4% in the same period (net sales in H1 2016 were TRY 362.7mn vs TRY 289.2mn net sales in H1 2015).
The average US Dollar exchange rate strengthened by 14.0% against the Turkish Lira to 2.9181 in H1 2016, which compares with an average rate of 2.5606 in H1 2015. The USD/TRY exchange rate was 2.8936 on 30 June 2016, while it was 2.9076 on 31 December 2015, which corresponds to a decrease of 0.5%.
EastPharma's sales increase was mainly achieved by increased volumes in Deva's Human Pharma products business and veterinary products business. In H1 2016 versus H1 2015, Human Pharma revenues in US dollar terms increased by 9.2% (from USD 105.4mn to USD 115.1mn). Veterinary products revenues increased by 16.4% (from USD 6.16mn to USD 7.17mn).
Deva's Capital Markets Board (CMB) results show revenue in H1 2016 was TRY 370.2mn, up 26.0% from the same period in 2015 (TRY 293.9mn).
Deva's sales increase was mainly achieved by increased volumes in Deva's Human Pharma products business and veterinary products business. In H1 2016 versus H1 2015, Human Pharma revenue increased by 25.0% (from TRY 274.8mn to TRY 343.4mn).Veterinary business revenue increased by 32.5% compared to the H1 2015 (from TRY 15.78mn to TRY 20.91mn).
EastPharma's gross profit in H1 2016 was USD 59.4mn, up from USD 50.1mn in H1 2015. The gross profit margin in H1 2016 was 48% vs 44% in H1 2015.
EBITDA in H1 2016 was USD 34.1mn vs USD 26.4mn in H1 2015 representing an EBITDA margin of 27.5% vs 23.4% in H1 2015.
Operating expenses in H1 2016 increased by 2.2%, from USD 32.2mn to USD 32.9mn. The ratio of operating expenses to revenues decreased to 26.5% from 28.5% compared to H1 2015. Sales and marketing expenses in H1 2016 were 13.6% of revenues; general administrative expenses were 10.0% of revenues; research and development expenses were 2.9% of revenues. These expenses were 15.7%, 10.2% and 2.6% in H1 2015, respectively.
Finance cost decreased by USD 0.6mn, from USD 18.64mn to USD 18.06mn in H1 2016 compared to H1 2015. Foreign exchange gains/losses on borrowings decreased by USD 0.8mn, amortization of discount on receivables decreased by USD 0.2mn and interest on borrowings and bond interests and other expenses increased by USD 0.4mn. Average TRY interest rate increased to 13.0% in H1 2016 from 10.4% in H1 2015.
Receivable days at 30 June 2016 were 105 days, compared to 120 days as at 31 December 2015.
Philipp Haas, EastPharma's Chairman and CEO, stated;
'Despite the weak Turkish Lira, the company has managed to achieve increased sales in US Dollar terms and also an improvement in margins. Recent Turkish Lira weakness will continue to negatively impact our business.'
EastPharma Ltd - a company active in the manufacturing and marketing of pharmaceutical products in Turkey and in other regional markets; for further information please visit: