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Sanochemia Pharmazeutika AG: Six-Month Financial Results 2008/2009

 

Sales revenues increase 11 percent / earnings impacted by currency translation effects and higher spendings / net result improves

 

Vienna, 28 May 2009 – Sanochemia Pharmazeutika AG, Vienna, listed in the Prime Segment of the Frankfurt Stock Exchange (ISIN AT0000776307) today announces audited figures for the first half year of its 2008/2009 financial year (to 31 March 2009):

 

In line with expectations, consolidated turnover in the financial year to date rose by 11 percent to T€ 13,922 (PY: T€ 12,440). This rise in sales revenues is mainly accounted for by the Human Pharmaceuticals segment, engaged in manufacturing Sanochemia’s finished products, and by increased levels of contract manufacturing (Production segment) despite the difficult economic circumstances.

 

Although both core segments made positive contributions to the consolidated result in the second quarter, it was nonetheless not possible to fully compensate for the weak first quarter (following the delayed invoicing of a galantamine production run). As a result of the planned increase in expenditure associated with ongoing development projects and, in part, due to currency translation effects linked to certain foreign operations, the operating result (EBIT) declined to minus T€ 3,969 (PY: T€ minus 3,019).

 

The significant improvement in the year-on-year financial result from minus T€ 1,415 to minus T€ 143 led to a pre-tax result of minus T€ 4,112 (PY: minus T€ 4,434) which, in turn, culminated in an improved result per share of minus € 0.39 (PY: minus € 0.43).

 

The asset and financial positions of the group at 31 March 2009 remained relatively unchanged compared to the close of the 2007/2008 financial year. The equity ratio remains high at 60 percent. Cash flow from operating activities improved significantly to minus T € 2,417 (PY: minus T€ 9,942). 

 

The second quarter was also more positive than the preceding period at the segment level, with the core segments of Human Pharmaceuticals and Production both generating higher sales revenues and operating results. On a half-year basis (1 Oct. 2008 – 31 Mar. 2009), these recent improvements only partially offset the weak first quarter, although an upwards trend is now also clearly discernable in the Production segment.

 

• Human Pharmaceutical revenues climbed 20% to T€ 8,337 (PY: T€ 6,948). Revenues in this segment are generated through the manufacture of radiological products, diagnostics and other pharmaceuticals such as Viveo^®. The fact that the operating result increased from T€ 831 to T€ 1,023 despite higher marketing expenses is indicative of the sustained development of earnings in this segment.
• The Production segment also recovered ground, due to a stronger Q2, with revenues of T€ 5,524 (PY: T€ 5,456), which was in large part accounted for by the invoicing of the abovementioned galantamine production run. The first sales revenues generated by the activities of the New Business Development department also played a role in improving segment results. Again, due to the weak Q1, the segment operating result for the year to date remained negative at minus T€ 1,821 (PY: minus T€ 835).

 

OUTLOOK

 

The strategic objective of the Company remains to rapidly forge ahead with its program of internationalisation. The radiological products, most notably MR-Lux^® and Scanlux^® in the US, present a major opportunity to enter new geographical markets and are expected to make significant contributions to bottom-line growth in the next financial year.

 

• The Human Pharmaceuticals segment is forecast to continue generating growth despite Sanochemia expecting the market to become more challenging in response to intensified competition, possible pressure on prices and exchange rate volatility.
• The Production segment is expected to be bolstered by the planned moves into new markets, particularly those for imaging agents; the effects of this are likely to only become significant in the course of the next financial year.  The expectation is also for the efforts of the New Business Development department to generate additional potential in what is essentially a lucrative area of business.
• In the area of research and development, the priority is to rapidly conduct the clinical trials for PVP hypericine and Secrelux^® in order to underpin the company’s prospects in the mid term. Given the more difficult economic circumstances, the company expects possible delays in its search for development project (out-licensing) partners.   

 

On the basis of the current economic situation and the difficulty of predicting the development of its markets, the company as yet feels unable to provide any firm guidance for results in its full 2008/2009 financial year. It is also to be noted that its future performance is dependent on the decisions to be reached by regulatory authorities relating to registrations dossiers filed for a number of products.

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The full six-month financial results, including the segment reporting, may be requested from the company directly or viewed online at www.sanochemia.at.

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For further information, please contact:

 

Margarita Hoch

Investor Relations
Tel.: + 43 / (0) 1 / 3191456 - 335
Mobile: + 43 (0) 664 / 21 38 152 
m.hoch(at)sanochemia.at