The following text is a full version of press release:
Prague, London, October 22, 2008 – N.V. (‘Zentiva’ or the ‘Company’), a leading CEE pharmaceutical company that develops, manufactures and markets modern branded generic pharmaceutical products announces that it expects to report net sales for the first nine months of 2008 of around CZK 13 billion, representing an 18% increase over the same period in 2007. During the first nine months of 2008, Zentiva’s sales have been negatively impacted by the strength of the Czech Koruna, the Company’s reporting currency. At constant exchange rates, net sales in the first nine months of 2008 would have increased by 28% versus the corresponding period in 2007. This increase in sales in 2008 has been driven by the Company’s new Turkish acquisition which has provided a platform for growth and has given a much more balanced market presence.
Jiri Michal, Chairman and CEO commenting today said:
“Zentiva’s sales performance during the first nine months of 2008 demonstrates the inherent strength of our much more broadly based business. This is particularly true given the impact of the stronger Czech Koruna during the period. We are continuing to make good progress in Turkey, our Romanian business is now in much better shape and in Russia our sales are continuing to grow at an attractive pace. These developments are allowing us to overcome the anticipated sales decline that we are seeing in the Czech Republic. Our higher sales have also allowed us to deliver an improved operating performance as a result of the integration benefits that we are generating in our Turkish business and our on-going focus on efficiencies across all of the activities of the Group.”
In the nine months of 2008, saw the following net sales trends:
?? In Turkey, achieved net pharmaceutical sales of approximately CZK 2.3 billion, impacted to a large degree by the CZK/TRY exchange rate. In the 3rd Quarter net sales have increased by approximately 22% in local currency terms
?? In Romania, the Company’s net pharmaceutical sales declined by around 19% yoy, to a large extent due to the strength of CZK. In local currency terms sales in Romania increased by approximately 2% in the first nine months of 2008. In the 3rd Quarter of 2008, sales in Romania more than doubled in local currency terms. This reflects the benefits of the actions that have been taken in the last fifteen months to create a more solid business platform in this important market and the low level of sales in the 3rd Quarter 2007.
?? In the Czech Republic, the Company’s net pharmaceutical sales were down 11% yoy as anticipated. This sales decline reflects the impact of the introduction of mandatory fees for doctor visits and prescriptions from the beginning of the year.
?? Zentiva’s other markets and other non-pharmaceutical businesses have made an important contribution, with net sales up 16% yoy (almost 27% at constant exchange rate) driven by strong performances in Russia, Ukraine, the Other CIS countries, and Bulgaria, as well as the consolidation of our non-pharmaceutical businesses in Turkey.
will provide further details on its performance for the nine month period ending September 30, 2008, on November 10, 2008 at noon CET, when the Company’s Nine Month 2008 Report is released.