Pharmaceutical company Stada Arzneimittel AG (SAZ.XE) Wednesday confirmed its full-year outlook and reported a 17% rise in first-quarter net profit, as a strong performance in its Eastern European business helped offset the still-difficult economic situation in other markets.

The German company, which makes generics as well as branded drugs, said it still sees a rise in sales and operating profit adjusted for one-time special effects, as well as at least a stabilization of operating margins.

"Despite the ongoing difficult framework conditions in various national markets, the key earnings figures of the first quarter are in the upper end of our expectations," said Chief Executive Hartmut Retzlaff. "We can therefore talk about a very good result in the first quarter," he said in a statement.

Asked later on a conference call about whether U.S.-based Pfizer Inc.(PFE)--which lost out on buying Germany's Ratiopharm--is interested in acquiring Stada, Retzlaff said "I will leave it up to analysts as to whether Stada is an acquisition target", but added that, should a takeover bid be made, Stada's management would review it and then act in accordance with shareholders interests.

Stada said back in March that it hadn't been approached by companies that had lost out to Israel-based Teva Pharmaceutical Industries Ltd.(TEVA) in an auction to buy generics maker Ratiopharm.

"We believe that Stada's business model is sustainable and ... are confident that we can continue to grow organically," Retzlaff said Wednesday.

Some analysts expect Stada to now face more competition from Ratiopharm, but Retzlaff Wednesday said Stada doesn't feel increased pressure following the Teva deal.

In Russia, which continues to be STADA's second most important national market, Stada recorded sales growth of 17% when applying last year's exchange rates. In euro terms, sales rose 23% to EUR44.7 million. In Eastern Europe, sales rose 11% to EUR86.8 million in the first three months of the year, contributing 22% to overall group sales.

Adjusted earnings before interest, taxes, depreciation and amortization, or Ebitda, rose 12% to EUR76 million, topping analysts expectations of EUR74 million.

Net profit rose 17% to EUR28.1 million, but falling slightly short of analyst expectations of EUR29 million.

First-quarter sales rose 5% to EUR395.7 million, slightly higher than analysts' expectations for EUR394 million.

Stada's figures were in line with most analyst expectations with some saying the outlook remains dim an imprecise.

The outlook "remains very imprecise aiming for higher sales and adjusted earnings," said Merck Finck analyst Carsten Kunold, who rates the stock at sell.

CEO Retzlaff said Stada will give more concrete guidance at its annual general meeting in June, adding that it "won't disappoint".

At 1325 GMT shares traded up 4.8% at EUR32.05, while the MDAX traded 2.6% higher. The stock has gained more than 30% in value year-to-date.

-By Natascha Divac, Dow Jones Newswires; +49 69 29725 508; djnews.frankfurt@dowjones.com