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Q1 2010 Financial Results

Q1 2010 Financial Results

The turmoil created in the pharmaceuticals’ market during the first quarter of 2010 -which continues until today- has significantly affected Lavipharm’s Financials. In anticipation of the decrease in drug prices, as expected since the beginning of the year, sales have dropped drastically, due to warehouses’ and pharmacies’ effort to reduce inventories.

As a consequence, Lavipharm’s Consolidated Turnover fell to Euro 54.1 million from Euro 59.7 million in Q1 2009, decreased by 9.5%. Gross Profit was reduced by Euro 1.6 million, to Euro 8.3 million from Euro 9.9 million in the same period last year, while EBITDA amounted to Euro 1.8 million from Euro 3.5 million. It is worth mentioning that financial expenses (borrowing costs) have been decreased by a significant 13.8%, as a result of the conversion of short term borrowings to long term debt.

On the other hand, financial income has been significantly decreased, since 2009 financial income included extraordinary gains of Euro11.9 million from a debt forgiveness in the Group’s subsidiary in the USA. As a result, amounts are not comparable with this year’s consolidated results, amounting to Euro 2.0 million losses from Euro 11.3 million profits in Q1 2009 and results after taxes and minority interests amounting to Euro 1.9 million losses versus Euro 6.6 million profits last year. Regarding the financial results of the mother company, Lavipharm S.A, Turnover amounted to Euro 11.0 million from Euro 14.4 million in Q1 2009, as a result of the abovementioned situation in the market. Results before taxes show losses of Euro 1.4 million from profits of Euro 443K last year and results after taxes show losses amounting to Euro 1.2 million instead of profits of Euro 182K in the same period of 2009.

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.