Sales income higher by 7% and net profit up by 5% during the first half of 2018 compared to the first semester of 2017

The profit and sales revenue obtained by Antibiotice (BSE index: ATB) during the first half of 2018 experienced higher values than those during the same period of 2017.

Sales income higher by 7% and net profit up by 5% during the first half of 2018 compared to the first semester of 2017

The objectives of the company were to achieve the approved indicators through the Income and Expenditure Budget. Thus, according to the financial results communicated to the Bucharest Stock Exchange, the profit before tax for the reported period is RON 20.8 million, up by 4% compared to 2017 and 23% higher than the profit estimated in IEB.

The profit after tax is RON 20.1 million, higher than that of 2017 by 5% and higher than the budgeted profit by 41%.

Also, the sales revenues of the target period recorded RON 157.7 million, up by 7% compared to 2017, when RON 147.2 million were registered, as a result of the company’s sustained effort to consolidate the business.

Of the income achieved during the first half of this year, Antibiotice SA returned to the public health system through the claw-back tax RON 18 million, higher than the amount planned in the IEB (RON 12 million) and the value recorded in the first semester 2017 (RON 14 million).

Evolution on the domestic market

The pharmaceutical market in Romania recorded an increase of 16.8% during the first half of 2018 compared to the same period of the previous year, reaching RON 7.6 billion compared to the RON 6.51 billion recorded during the first half of the year 2017.

The positive evolution was also recorded at volume level, increasing by 377 million physical units, from 6.16 billion units during the first semester of 2017 to 6.54 billion units during the first semester of 2018.

The market is still supported by the value of national hepatitis programs and products recently introduced into cost-volume/cost-volume-result contracts. If we relate to the pharmaceutical market except for their value, during the first half of 2018 there was a 8.9% increase from RON 6.38 billion (first half of 2017) to RON 6.94 billion (first semester 2018). In terms of drug consumption, it grew by 6% to 6.54 million units compared to 6.16 million units registered during the same period of the previous year.

The Hospital market (excluding the value of cost-volume/cost-volume-result contracts) recorded a slight increase of 2.72% in the first half of 2018 compared to January-June 2017, while the Retail market (excluding the value of the cost contracts-volume/cost-volume-result) registered a 9.8% increase compared to the same period of the previous year.

Against this background, Antibiotice records a 7.5% increase in sales from pharmacies and hospitals compared to the first half of 2017, while the sales in therapeutic units have grown by 4.8%.

With a sales value of RON 165.8 million, Antibiotice SA is ranked fourth amongst the manufacturers of generic prescription drugs and non-prescription medicines (OTC) in Romania.

At the level of the first half of 2018, Antibiotice maintained its leading position in terms of units used on the ointment segment – with a market share of 26.7%, suppositories – with a market share of 41.8% and powders for injection – with a market share of 72.4%.

3 new products assimilated to the company’s portfolio intended for the domestic market

 

  • Tinero® gel– A cosmetic product intended for skin care with acneic tendency;
  • Fluxiv® tonic cream – A cosmetic product whose ingredients help to comfort and relax the feet. Fluxiv® tonic cream along with Fluxiv® tablets make the Fluxiv® range offering a full therapeutic option for the vascular circulation health;
  • Perasin® (piperacillinum+tazobactamum) – powder for solution for infusion – a medicine used to treat bacterial infections such as those affecting the lower respiratory tract (lungs), the urinary tract (kidney and bladder), the abdomen, skin or blood.

Exports higher by 10%

The revenues from the external market sales during the first half of 2018 were 9.8% higher compared to 2017, with exports in the reference period worth $ 17.65 million compared to $ 16.08 million in 2017.

 The main external destinations for the products bearing the Antibiotice brand (finished products and Nystatin active substance) were Asia, North America and Europe, with sales in these areas accounting for approximately 73% of the total export turnover during the first half of 2018.

 Increases on strategic markets

  • The Nystatin exports doubled in value both on the United States market and on the market of South America compared to the first half of 2017.

On the US market the Nystatin exports grew by 52% in terms of value compared to the same period in 2017. The U.S. market represents the largest and most valuable market for Nystatin, and the increase in presence on this market was a strategic objective of Antibiotice. Strategic partnerships with the leading Nystatin end-users on this market have been strengthened this year to create the premises for business stability, developed for this product in the U.S.

  • At the same time, the South American market experienced a doubling of the Nystatin export value, especially due to the growth on the Brazilian market, the most important South American market for this product and one of the largest in the world.
  • In Southeast Asia, the main market that will generate growth in the coming years is Vietnam. The sales of finished products in this geographic area increased by 31% compared to the first half of 2017. The opening of the representative office in Vietnam is aimed at the strategic development by registering new products, developing appropriate commercial policies and addressing all sales channels. Other markets in Southeast Asia such as those in Philippines, Thailand and Hong Kong are also targeted.
  • On the European market there was an increase of 6.6%, mainly generated by the export of finished products, which was up by 14% compared to the previous year. In this area, the development strategy targets both the Central and Eastern European countries (Serbia, Albania, the Baltic States) and the Western Europe.
  • The exports from Russia & C.I.S. increased by 9.4% mainly due to the Ukrainian market. During the first semester of 2018, the procedures for registration of an Antibiotice SA representative office were initiated, given the market potential and growth prospects. The opening of the representative office is aimed at registering the product portfolio, promoting the Antibiotice brand and developing its own sales team for the long-term export development.

 New Marketing Authorizations for the Antibiotice medicinal products

 The R&D activity has as main objective the development, optimization and maintenance of the portfolio of over 150 products (injectables, topical application forms, pessaries, suppositories, tablets, capsules). The strategic therapeutic areas (anti-infective products, cardiovascular, dermatology, women’s health products) are strengthened by national and international authorization of new prescription drugs, OTCs, cosmetics or food supplements.

Thus, during the first semester of 2018, the international expansion resulted in the acquisition of 22 new Marketing Authorizations for Antibiotice branded medicinal products in 3 countries in Asia and Europe.

 Sustained investment program

During the first half of 2018, the company’s investment program continued, with the contracts made for this purpose accounting for 83% of the budgeted amount.

The main investment objective is the achievement of a new production capacity for Ointments and Suppositories, aimed at increasing the turnover and the capacity of Antibiotice to register, manufacture and market quality Romanian medicines with GMP authorizations on all the regulated pharmaceutical markets (Europe, USA and Canada).

Investments have also been made in equipment for production facilities, intended to modernize the utilities infrastructure, the serialization, research and quality equipment, as well as investments to ensure logistics.

Starting the program to increase the attractiveness of the employer brand

In 2018, Antibiotice set out to launch a program to increase the attractiveness of the employer brand in order to facilitate the attraction and retention of qualified human resources, with a focus on highly specialized roles. To achieve the goal, the necessary instruments were set up during the first semester, while for the second part of the year, the following are planned:

  • Carrying out the impact study on the perception and attractiveness of the employer brand amongst the audiences target for recruitment;
  • The development of a plan to increase the employer’s brand awareness and compliance with good human resource practices based upon impact analysis results.

 

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