Q3-2014_Protek_tradi..

**NOT FOR DISTRIBUTION, EITHER DIRECT OR INDIRECT, IN THE USA, AUSTRALIA, CANADA, OR
JAPAN**
29 October 2014
Moscow
Protek Group announces preliminary operational results
for Q3-2014 and 9M-2014
Protek Group (PRTK: RTS, MICEX), a major Russian pharmaceutical company announces its
preliminary operational results for Q3-2014 and 9M-2014 according to the management accounts
(unaudited)*.
Group Revenue Highlights by Segment**:
Revenue,
Group
Distribution
RUB mln.
38,067
32,281
Q3-2014
Retail
Production
Eliminations
5,777
1,900
(1,890)
33,681
29,192
4,754
1,264
(1,528)
Q3-2013
Change, Q32014 / Q3-2013,
%
9M-2014
13.0%
10.6%
21.5%
50.4%
23.7%
109,342
92,633
16,977
5,167
(5,535)
9M-2013
100,261
86,607
14,305
4,137
(4,788)
Change, 9M2014 / 9M-2013,
%
9.1%
7.0%
18.7%
24.9%
13.5%
In Q3-2014, the consolidated revenue of the Group increased by 13.0% y-o-y to
RUB 38,067 mln.
In 9M-2014, the Group’s consolidated revenue increased by 9.1% y-o-y to RUB 109,342 mln.
The Group’s revenue growth for 9M-2014 was driven by all the business segments, each
showing an uptrend.
Distribution Segment:
Distribution Segment Revenue Highlights:
Revenue, RUB mln.
Q3-2014
32,281
Q3-2013
29,192
Change, Q3-2014 / Q3-2013, %
10.6%
9M-2014
92,633
9M-2013
86,607
Change, 9M-2014 / 9M-2013, %
7.0%
In 9M-2014, the Distribution Segment made up 80.7% of the Group’s total revenue***.
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Retail Segment
Total of 1122 retail outlets were active as at 30 September 2014.
In Q3-2014, 60 pharmacies were organically opened and 12 pharmacies were closed.
In 9M-2014, 175 pharmacies were organically opened and 45 pharmacies were closed.
In 9M-2014, the Retail Segment made up 14.8 % of the Group’s total revenue***.
Retail Segment Operating Highlights:
Revenue,
RUB mln.
5,777
Q3-2014
Traffic, ‘000
16,531
Q3-2013
4,754
14,512
Change, Q3-2014 / Q3-2013, %
21.5%
13.9%
9M-2014
16,977
48,540
9M-2013
14,305
43,381
Change, 9M-2014 / 9M-2013, %
18.7%
11.9%
Like-for-Like (L-f-L) Sales****:
As at 30 September 2014, there were 693 Like-for-Like pharmacies in the Retail Segment.
L-f-L Retail Segment Operating Highlights:
L-f-L revenue
change, %
Traffic change, %
Average ticket
change, %
Q3-2014 / Q3-2013
5.7%
(3.3)%
9.3%
9M-2014 / 9M-2013
2.4%
(5.3)%
8.1%
“Bud Zdorov!” low price pharmacies:
As at 30 September 2014, Rigla’s “Bud Zdorov!” brand, was represented in 429 pharmacies
(compared to 279 pharmacies as at 30 September 2013).
In 9M-2014, “Bud Zdorov!” pharmacies revenue increased by 2.5% y-o-y, traffic was down
5.1%.
Production Segment
Production Segment Operating Highlights:
Revenue,
Volume,
RUB mln.
mln. packages
1,900
Q3-2014
9.48
Proprietary brands in
revenue, %
58.7%
Q3-2013
1,264
9.10
Change, Q3-2014 / Q32013, %
9M-2014
50.4%
+4.2%
5,167
23.77
58.3%
9M-2013
4,137
23.89
66.4%
Change, 9M-2014 / 9M2013, %
24.9%
(0.5)%
66.5%
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JAPAN**
In Q3-2014, the proprietary brand revenue surged by 32.7% to RUB 1,115 mln. against
RUB 840 mln. in Q3-2013.
In 9M-2014, the proprietary brand revenue surged by 9.5% to RUB 3,010 mln. against
RUB 2,748 mln. in 9M-2013 .
The 9M-2014 revenue boost was due to a sales increase of proprietary products
(Chondroguard, Likferr 100, Cereton, Amelotex, Flamax).
In 9M-2014, the Production Segment made up 4.5 % of the Group’s total revenue***.
Vadim Muzyaev, President of Protek Group: "Q3-2014 was quite good with the Group's
overweight position and an upturn of 5.8% for the period. The Group's revenue saw an increase of
13.0% and 9.1% y-o-y in Q3-2014 and 9M-2014, respectively. It is noteworthy, the Production
Segment showed strong performance moving up 50% in Q3-2014 and 25% in 9M-2014 and being the
top growth generator within the Protek Group. Production is understood to be the key target for our
investments. The Retail was also positive in terms of revenue which was up 19% to RUB 16,977 mln.
in 9M-2014 due to the rapid organic growth mainly driven by the expansion of low price pharmacies
and better operating expense control. The Distribution went up by 11% in Q3-2014 and 7% in 9M2014 outperforming the previous quarter. The growth is still underpinned by commercial market sales
gaining 12% and 9% in Q3-2014 and 9M-2014, respectively".
Contacts
Public Relations Department, Protek Group
Phone: +7 (495) 737 3500 (ext. 4512) e-mail: [email protected]
[email protected]
www.protek-group.ru
*Unaudited management accounts of Protek Group for Q3-2014 and 9M-2014, preliminary data.
**From 1 January 2014 the Distribution segment includes Protek-SVM. Comparable data for prior periods in Distribution segment was
adjusted appropriately. From 1 January 2014 the Production segment does not include Protek-SVM. Comparable data for prior periods
was adjusted appropriately.
***Calculated as the share of each segment in the total revenue (excluding unallocated revenue and eliminations).
****Like-for-Like data on the pharmacies opened or acquired over the 24 months immediately preceding the reporting period and not
closed during the reporting period.
***
Matters discussed in this document may constitute forecasts and other forward-looking statements concerning future events or financial
performance of the Company. The words “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate”, “aim”, “forecast”, “project”, “will”, “may”,
“might”, “should”, “could” and similar expressions (or their negative) identify certain of these forward-looking statements.
The Company warns that these forward-looking statements are but forecasts that may differ significantly from actual events and
performance. The Company does not intend to supplement, amend, update or revise any of the forward-looking statements contained in this document
to reflect any events or circumstances occurring after the publication of this document, or any extraordinary circumstances.
Multiple factors, including, in particular, overall economic conditions, competitive environment and many other risks inherent to the
Company and its operations, may result in actual performance differing substantially from these forecasts and forward-looking statements of the
Company.
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