STADA Arzneimittel AG in the first six months of 2001: Successful course continues. Sales +14%; EBITDA +30%; earnings per share (DVFA) +27%

Transcription

1 Press Release STADA Arzneimittel AG in the first six months of 2001: Successful course continues Strong earnings growth: Sales +14%; EBITDA +30%; earnings per share (DVFA) +27% Market capitalization as of June 30, 2001 over DM 1 billion (+59%) 94 product launches group-wide Biogenerics project: Development cooperation launched On the way to its 6 th successful year in a row... and now in the MDAX. STADA Arzneimittel AG has successfully continued its growth course in the first six months of Notwithstanding last year s record level, sales in the reporting period rose another 14% and reached DM million. At the same time, organic growth (excluding the effects of acquisitions) was up +13%. With this broadly international and continuing growth STADA is maintaining its successful course and by the end of fiscal year 2001 it will as planned clearly exceed the sales threshold of 1 billion DM. Another important milestone was already reached in the first six months of 2001: Deutsche Börse AG decided in June to include STADA in the MDAX after its market capitalization increased within 12 months by +59% to DM /22/2001 STADA The Health AG 1/5

2 billion. Contributing to this was the increase in respective stock prices during this period, +63% to EUR for common shares and +43% to EUR for preferred shares as of June 30, In the meantime MDAX inclusion followed on July 23, Another positive price impulse comes from the impending conversion of preferred shares into registered STADA shares with restricted transferability to combine the stock s liquidity. The 1:1 conversion was approved at the June 19, 2001 general meeting of shareholders and has already been entered into the Commercial Register. Deutsche Börse AG will implement the change technically in the fall. The upward trend of STADA stock has continued in the current quarter. Yesterday, on August 21, 2001, a registered share cost EUR 30.80, or +35% more than at the start of the year. By yesterday, preferred shares (WKN ) were up +26% compared to the start of the year. Thus, the consistently positive fundamental growth of STADA is being honored. In addition as a European generics stock, STADA provides good diversification for any pharmaceutical portfolio. Being in the MDAX the stock will now receive increased international attention. commented the chairman of the executive board, Hartmut Retzlaff, on the positive price performance. In addition to its sales and stock price, STADA s earnings have also shown gratifying growth in the first six months of Both the key earnings figure for the company EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) and earnings per share according to DVFA rose significantly more than sales in the first half of /22/2001 STADA The Health Company 2/5

3 The EBITDA of DM 73.3 million generated by the group in the first six months of the current fiscal year corresponds to an increase of +30% compared to last year s result, which was adjusted due to one-time expenses for last year s capital increase. In addition, for the year as a whole the executive board expects EBITDA growth to exceed organic growth. In so doing, STADA will clearly once more achieve its income goal of significant double-digit EBITDA growth in 2001 as well. Pretax profits (results of ordinary business activities) rose in the first six months of 2001 to DM 51.7 million, which corresponds to an increase of +33%. Net income for the year after taxes showed a nominal increase of +9% compared to last year s relevant number due to a one-time payment in the 2 nd quarter of 2001 of DM 4.2 million in tax arrears for the years 1995 to However, adjusted for this one-time expense net income for the year increased in the first six months of 2001 by +27%. explained STADA CFO Wolfgang Jeblonski. The overall very gratifying earnings growth of STADA in the first six months of 2001 is shown also in the +28% increase in earnings per share according to DVFA to DM The DVFA/SG results, in which goodwill is amortized over 20 years in accordance with Schmalenbachgesellschaft guidelines, increased +29% in the first half of 2001 to DM 1.29 per share. Generics were in the first six months of 2001 the largest (proportion of sales: 58%) and at the same time the fastest growing group segment (+20% compared to last year). Semi-generic special pharmaceuticals (oncologica, vaccines) grew by +18%. Brands in the areas of self-medication and wellness 8/22/2001 STADA The Health Company 3/5

4 also reported gratifying growth. Their sales growth was at +10%, the proportion of sales at 17%. With these three core business segments in conjunction with its strategic position as STADA. The Health Company, STADA continues to focus on growth areas in the health and pharmaceutical market, which profit from the cost pressure in health care systems worldwide and which are accessible without the risks associated with research in active ingredients. In the Commercial Sales/Other segment (proportion of sales: 22%), which is not included in the core business segments due to its low margins that are atypical for the group, STADA showed a gain in sales in the first six months of 2001 of +5%. In terms of regions, most markets indicate continually growing sales companies that are the basis for STADA s organic growth. In the EU, sales in the reporting period rose by +13% to DM million (+95% of total sales). The highest increases in this region in the first half of 2001 were in Italy (+445% to DM 9.8 million), Austria (+60% to DM 3.4 million), Belgium (+52% to DM 34.1 million) and Germany (+20% to DM million). At the same time, the two German generics sales lines, STADApharm and ALIUD PHARMA, each grew by +30% in the first half of Decreases in commercial sales in the Netherlands (sixmonth sales: DM million, or 4%) and in the contract manufacturing business in Ireland (six-month sales: DM 23.2 million, or 18%), i.e. factors outside the core business, prevented the local subsidiaries from achieving last year s sales in those countries. France on the other hand generated double-digit sales growth of +11% to DM 10.8 million. In Asia, six-month sales increased by +78% to DM 14.2 million. The majority stakes acquired in Asia in the first quarter of 2001, Croma Medic in the Philippines and Health Vision in Hong 8/22/2001 STADA The Health Company 4/5

5 Kong, have already contributed DM 6.6 million to the sales of the first six months. STADA reconfirmed its peak position in product development in the first six months of 2001 by introducing group-wide a total of 94 new products, among them in turn several product launches exactly timed to patent expiration. The development cooperation for biogenerics approved in January with the inclusion of private venture capital gives STADA a forward-looking foothold in the biotechnology industry that plays an important role for the pharmaceutical sector. The project was launched according to plan; biogeneric product launches are expected starting in In the first six months of 2001 STADA has continued to pursue an active, earnings-oriented acquisition policy. At the start of the year majority stakes in two distributors were acquired in Asia. This provides STADA access to the Chinese market and a presence in the Philippines. The July 1, 2001 acquisition of the iron and folic acid preparation Plastulen N for the German sales subsidiary NIDDApharm adds to the product portfolio and can be easily integrated into the current business structures. With its excellent capital structure, STADA will continue to exploit acquisition opportunities. *** The complete information present at today press conference, i.e. semi-annual report, the charts and other information regarding STADA Arzneimittel AG are published in German and English on the Internet at For further information, please contact: STADA Arzneimittel AG / Corporate Communications / Bad Vilbel Tel.: +49(0) / Fax: +49(0) / communication@stada.de Or visit us on the Internet at 8/22/2001 STADA The Health Company 5/5