UPDATE: Stada's Quarterly Net Jumps 17%; Confirms 2010 Outlook
12 Mai 2010 - 4:33PM
Dow Jones News
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