07 Jun 2017 First Half Financial Results – Turnover Increase – Exports Growth
Peania, September 29th, 2017 – In the First Half of 2017, Lavipharm reports increased Consolidated Turnover mainly attributed to international sales, despite economic pressures, sustained regulatory constraints and decrease of the pharmaceutical market in Greece. At the same time, the sharp drop in loans and financial expenses resulted to the significant amelioration of Lavipharm’s key financials.
Consolidated Turnover increased by 8.1% amounting to 16.3 million Euros compared to 15.1 million Euros in First Half 2016. International Sales appear further enhanced, accounting for 37.8% of the Consolidated Turnover, compared to 25.4% in the corresponding period last year. Gross Profit is increased by 9.3%, whereas Administrative Expenses were reduced by 9.7%. EBIDTA reached 3.0 million Euros from 4.1 million Euros in 2016 respectively. It is noted that last year’s EBIDTA included extraordinary expenses deriving from liabilities’ write-offs amounting to 2.4 million Euros in total. The dissolution of the subsidiary companies in the United States and, therefore, the cessation of their consolidation in the group financials a) created extraordinary gains of 14.3 million Euros, which strengthened consolidated results, and b) contributed to a significant reduction of financial expenses due to the corresponding reduction in borrowings. At the same time, financial expenses were further reduced due to the restructuring of Lavipharm’s total debt in Greece. In this context, consolidated Profits Before Taxes amounted to 15.4 million Euros compared to 13.3 million Euros in First Half 2016 and Profits After Taxes and minority shareholders’ interests to 14.4 million Euros from 8,4 million Euros in the same period last year.
With regards to the parent company Lavipharm SA, Turnover of First Half 2017 is reduced by 5.5 million Euros compared to the corresponding period previous year. This decrease is due to the change in the Company’s sales policy in Greece, which are thereon accounted through the subsidiary company Lavipharm Hellas; as a result, Consolidated Sales are not affected. Gross Profit improved by 20.9%, while EBITDA amounted to 3.2 million Euros from 3.1 million Euros in the same period last year. An important decrease is reported in the parent company’s financial expenses, as a result of the reduction in financial expenses following the recent loan restructuring. Profits Before Taxes amounted to 1.7 million Euros compared to 868 thousand Euros in First Half 2016 and Profits After Taxes to 1.2 million Euros compared to 1.1 million Euros in the corresponding period of the previous year.
The loan restructuring that took place in Greece, the continuous effort to reduce costs and expenses, the simplification of the Group’s operating structure, combined with the growth of the business mainly attributed to the export activity, offer a new drive to the management’s strategic planning for the enhancement of the Company’s position both in the Greek and international markets.
Lavipharm, with a history of more than a hundred years, is today an integrated Group engaged in the research, development, production, marketing and sales, wholesaling and distribution of pharmaceutical, cosmetic and healthcare products in Greece, with a strong international activity.