SANOCHEMIA Pharmazeutika AG, Vienna, listed in the Prime Segment of the Frankfurt Stock Exchange (ISIN AT0000776307), today announced its financial results to 30 June 2008:
The 3rd Quarter was the strongest quarter to date in the current financial year with results which were considerable higher than those of the comparable period of the previous financial year. Sales revenues rose compared with the same period a year earlier by 19 percent to €8.034m (PY: €6.752m), while the operating performance increased to €9.383m (PY: €8.619m).
EBIT of T€103 compares favourably against the negative EBIT of the corresponding period of 2006/07 (T€-834), and also against the first two quarters of the current financial year. The financial result was again positive and, at T€833, higher than in the same quarter of the prior year (PY: T€697). Based on a pre-tax result of T€949 (PY: T€-233), earnings per share for the period amounted to €0.09.
As the segment reporting for Q3 highlights, both core segments were able to deliver solid results: The Human Pharmaceuticals Division broke the €4m barrier (PY: €3m) for the first time. The operating segment result was three times higher than 12 months earlier, growing to T€829 (PY: T€276). This success is indicative of rising profitability in this constantly growing business area and of the increasing importance of new revenue drivers. The Production Division also reported its strongest quarter in the current financial year with sales revenues of T€3,472, moderately lower then a year earlier (T€3,708). This was sufficient to ensure that this segment also achieved positive EBIT in the third quarter in the amount of T€28 (PY: T€202).
The nine-month report (1.10.2007 - 30.6.2008) reveals sales revenues of €20.5m (PY: €24.5m). The difference, in terms of both sales revenues and the operating result, to the first three quarters of the previous financial year is attributable to the lower sales of one synthesis product which, following the expiry of patent protection, was not able to generate the revenues seen in previous years. In line with expectations, the main revenue drivers were radiological products, with tolperisone (Viveo®) making its first seven-digit contribution to pharmaceutical product sales.
As a result of the launch of Viveo®, the quarter saw no further capitalisation of research and development costs. Own work capitalised during the nine-month period amounted only to €0.7m following €2.4m in the first three periods of the previous reporting year. The earnings before interest and tax in the same period were, for the reasons outlined above, negative at €-2.9m (PY: +€0.3m). The financial result in the year to date of €-0.6m (PY: €1.5m) is accounted for by the negative result of non-interest-based financial activities. However, the third quarter was also marked by the first encouraging effects of the revised currency hedging and investment strategy which led to a positive financial result in the period from April to June.
Due to the factors set out above, the first three quarters yielded a pre-tax loss of €3.5m (PY: pre-tax profit of €1.9m) and a net result for the financial year to date of €-3.6m (PY: €1.5m), equivalent to €-0.33 (PY: €0.14) per share.
The complete nine-month report including segment results may be requested from the Company directly or, alternatively, viewed and downloaded at: www.sanochemia.at.
Teleconference: SANOCHEMIA will be holding a teleconference for analysts and investors at 10:00 this morning.
In the third quarter, SANOCHEMIA has achieved a return to profitability and a considerable improvement in terms of all major performance indicators.
This development indicates that, despite market volatility in the short term, SANOCHEMIA is on track to reach its sales revenue targets and sustainable profitability. Given the rapid progress made in marketing its new growth drivers and an innovative R&D pipeline, SANOCHEMIA regards itself as being well equipped to post similar results in the final quarter of its 2007/08 financial year.
The Board of Management is confident that these factors will enable the Company to accelerate growth in the next financial year and has set itself the target of again achieving a high single-digit increase in sales revenues and significantly higher earnings.
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