Macedonian drugmaker Alkaloid reported net consolidated profit of MKD 114.4m for 2Q09, down 31.5% q/q and 33.8% y/y. The result was 34.7% below our 2Q09 forecast due to weaker-than-expected quarterly sales. However, the company’s sales were up 18.3% y/y in 1H09. The stock currently trades at MKD 4,511 per share (2009F P/E of 9.5x), well below our fair value estimate.
sales came in at MKD 1,302.0m for 2Q09, down 5.2% q/q but up 1.4% y/y, driven by a sharp increase in domestic sales. Alkaloid’s domestic sales were up 31.2% y/y in 1H09. operating revenues came in 6.1% below our quarterly forecast. The firm did not disclose any additional information about regional sales. Alkaloid’s exposure to the domestic market increased slightly from 37.7% in 1Q09 to 44.6% in 2Q09.
EBIT came in at MKD 140.3m in 2Q09, down 24.6% q/q and 27.5% y/y, underperforming our forecast by 31.1%. Alkaloid’s EBIT margin dropped to 10.8%, (down -277bp q/q and -430bp y/y), driven primarily by a significant increase in personnel costs during 2Q09.
Net financial result came in at a MKD 9.0m loss in 2Q09, up 38.1% q/q but down from a MKD 0.6m gain in 1Q08. The net financial result beat our forecast by 30.7%.