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Financial Results 2009 – Strong EBITDA for the Group

Financial Results 2009 – Strong EBITDA for the Group

Consolidated Turnover posted an increase of 5%, reaching Euro 249.8 million compared to Euro 238.0 million during 2008. International Sales have increased by 17%, accounting for 11% of Total Sales. Gross Profit reached Euro 39.5 million from Euro 37.4 million in the last period (+5.6%). The decrease in operating expenses (5.1%) improved the Group EBITDA, which reached Euro 3.7 million in 2009 from Euro 797 K in FY 2008. It is worth noting that the Consolidated Financial Results are positive, amounting to Euro 4.1 million as opposed to (Euro 10.4) million in 2008, as they include a debt forgiveness of Euro 13.1 million from Lavipharm Corp., the subsidiary in the USA, as part of the final settlement of its loan obligations that took place during Q1 2009. As a result of the above, consolidated profits before taxes and minority rights reached Euro 3.9 million, as opposed to losses of Euro 17.7 million during the previous year, while profits after taxes and minority rights reached Euro 62 K as opposed to losses of Euro 14.2 million.

On the balance sheet, the aforementioned debt forgiveness reinforced significantly the Consolidated Shareholders Equity, which reached Euro 22.8 million, increased by 23.5% from December 31st 2008. Through the restructuring of the remaining debt, combined with the issuance of a 10 million Euro 3year convertible bond during Q4 2009, borrowing costs have been decreased by 13.8%.

At the same time, a big portion of the short term debt has been converted to long term, reducing the percentage of the short term liabilities to 56% of the total liabilities, compared to 71% on December 31st, 2008. Regarding the financial results of the mother company, Lavipharm S.A, Turnover rose by 3.9% amounting to Euro 56.5 million from Euro 54.4 million during 2008. Exports have increased by 22% and account for 23% of Total Sales. The company’s Operating Expenses increased by 6.4%, mostly due to increased selling expenses. As a result, profits before interest, taxes, depreciation and amortization (EBITDA) were reduced to Euro 3.5 million from Euro 4.9 million last year, while losses after taxes were reduced to Euro 2.3 million from Euro 50.4 million during FY 2008, which resulted from a Euro 45.4 million accounting write-off that took place in Q3 2008.

Always focusing on the company’s growth and development and taking into account the current international economic and business constraints, Lavipharm proceeds carefully and diligently to all the necessary actions to primarily further enhance its commercial presence in Greece, and on the other hand, achieve a key position in the global pharmaceutical market.