News

Protek Group (PRTK: RTS, MICEX), one of the major pharmaceutical companies in Russia, announces its preliminary operating results for Q1-2012 based on unaudited management accounts.

Group Operating Highlights by Segment:

• In Q1-2012, consolidated revenue of the Group* increased by 18.8 % y-o-y and reached RUB 28,539 mln.

Distribution Segment:

Key company of the segment is CV Protek.

Distribution Segment Operating Highlights:

• In Q1-2012, revenue of the Distribution Segment increased by 17.5% y-o-y to RUB 24,645 mln. The key driver was the commercial segment (+ 25.5%).
• The Distribution Segment in the Group’s total revenue comprises 82%**.

Retail Sales Segment

Key company of the segment is Rigla pharmacy chain.

• The total number of retail outlets as at March 31, 2012 comprised 716 pharmacies.
• In Q1-2012, 29 pharmacies were organically opened and 8 pharmacies were closed.

Retail Sales Segment Operating Highlights:

• In Q1-2012, revenue of the Retail Sales Segment increased by 12.5% y-o-y to RUB 3,893 mln.
• The Retail Sales Segment in the Group’s total revenue comprises 13%**.

Like-for-Like (L-f-L) Sales***

            As at 31 March 2012, there were 606 Like-for-Like pharmacies in the Retail Sales Segment.

L-f-L Retail Sales Segment Operating Highlights:

• The revenue trend in L-f-L pharmacies over Q1-2012 was plus 4.2%.

“Bud Zdorov!” (Bless You!) discount pharmacy chain expansion:

• As at 31 March 2012, Rigla’s “Bud Zdorov” (Bless You!) discount pharmacy brand was represented in 120 pharmacies (compared to 103 pharmacies as at 31 December 2011).
• This format accounts for 10% of the Retail Sales Segment’s total revenue.

Private label product line development:

• As at 31 March 2012, private label product items increased by 22% compared to Q4-2011 totaling 329 (versus 270 as at 31 December 2011).
• In Q1-2012, private label products comprise 2.9% and 6.5% of the Segment’s total revenue and gross profit, respectively, with the Company continuing its efforts to expand the product line.

Production Segment

Key company of the segment is Sotex.

Production Segment Operating Highlights:

• In Q1-2012, the Production Segment’s revenue increased by 20.1% y-o-y reaching RUB 1,596 mln.
• Production Segment in the Group’s total revenue comprises 5%**.
• The number of own brands reached 40 items in Q1-2012 compared to 30 items in Q1-2011.
• Own brands in the Production Segment’s revenue increased by 164% over Q1-2012 reaching RUB 650 mln. compared to RUB 246 mln. in Q1-2011.

Mr. Vadim Muzyayev, the President of Protek Group, has commented on Q1-2012 results: “Over Q1-2012, the Group showed a major revenue growth, the top gainer being the Production Segment (20.1%) where sales improved over the period for all product groups including own brands. In the Distribution Segment, we focused mainly on expanding commercial segment sales, promoting operational excellence and increasing the market share driven by a favourable competitive environment. In the Retail Sales Segment, were active in organic development in line with the multi-format pharmacy strategy and also focused on improving return on the product range, specifically, through expanding our own brand product lines.

* Preliminary results based on Q1-2012 unaudited management accounts.
** Calculated as the share of each segment in the total revenue (excluding eliminations and retained earnings).
*** Like-for-Like data on the pharmacies opened or acquired over 24 months immediately preceding the reporting period and not closed before its end.