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2008-10-23 Zentiva expects Jan-Sept sales at CZK 18bn

Pharmaceutical company Zentiva raised net sales by 18 percent year-on-year to some Kc13bn in January-September, according to preliminary unaudited data CTK got from the company's spokeswoman Vera Kudynova Wednesday.

Analysts polled by CTK expected a 25 percent increase to Kc13.93bn.

The sales were affected by the strong Czech crown. Without its influence, they would grow by 28 percent, the company's press release says.

Sales also grew thanks to the acquisition of Turkish firm Eczacibasi.

"We have made a big progress in Turkey again, our business activities in Romania are now in a much better condition and our sales in Russia still show an attractive growth pace. These achievements help us cope with the expected fall in sales in the Czech Republic," CEO Jiri Michal said.

Thanks to integration, the company also improved operating results.

Net revenue from the sale of drugs in the Czech Republic decreased by an expected 11 percent year-on-year. The company ascribes this to the introduction of fees.

As of January, people pay Kc30 when visiting a doctor and the same amount of money per item on prescription, Kc60 per day at a hospital and Kc90 for emergency treatment.

Net sale of medicines in Turkey reached Kc2.3bn in Q1-3. In Q3, sales increased by 22 percent.

Net sales in Romania decreased by 19 percent, mainly owing to the strong Czech crown. In local currency, sales would grow by 2 percent.

Zentiva's other markets and activities, including work on contract, grew by 16 percent year-on-year. Without the exchange rate fluctuations, they would jump by nearly 27 percent.

This was mainly thanks to results in Russia, Ukraine and other CIS countries, Bulgaria and other sales in Turkey.

The domestic pharmaceutical number one focuses on generics production.

The company has over 6,000 employees in total and has production plants in the Czech Republic, Slovakia, Romania and Turkey.

Zentiva's shareholder Sanofi-Aventis Europe of France has made a takeover bid for Zentiva.

Source: www.praguemonitor.com