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2009-03-25 Czech: Zentiva produces strong 2008 operating results

Zentiva N.V., a leading CEE pharmaceutical company that develops, manufactures and markets modern branded generic pharmaceutical products announces its 2008 results. Zentiva’s 2008 results clearly show that the Company has delivered on its two key targets, top line growth and enhanced operating profitability. In 2008 Zentiva’s sales increased by 10.2% to CZK 18,377.9 million driven by the Eczacibasi-Zentiva business, which was acquired in Turkey in July 2007. Sales in 2008 would have increased by 20.0% on comparable basis despite the more difficult economic background, particularly in the latter part of the year.

Zentiva achieved higher sales in Turkey, Russia, the Ukraine, the other countries of the CIS, and Bulgaria in 2008. In 2008, Zentiva increased EBIT by 49.9% to CZK 3,251.4 million1 and free cash flow2 by 44.6% to CZK 2,117.6 million due to a significant improvement in all operational aspects of its business, including the integration of its recently acquired Turkish operations.

Our operating results for 2008 clearly show the strengths of Zentiva’s organization which is now well diversified across the markets of Central and Eastern Europe. As expected, we have achieved a significant increase in operating profit, despite the increasingly difficult market environment. This improvement in operating profits has been driven by our sales growth and the excellent progress we have made in improving our overall efficiency. This strong operating performance has also contributed to a much improved cash flow that has allowed us to strengthen our financial position. Our excellent operating performance in 2008 demonstrates the strength of the much enlarged, better balanced Zentiva organization that was created in 2007. This larger regional platform has given us access to a much increased patient population and provides us with important opportunities to generate economies of scale. Over the course of the last year we have started to benefit from our increased scale as we have worked hard to improve the efficiency of all aspects of our business, said Ji?í Michal, Chairman of the Board and CEO of Zentiva.

Izabela Klockowska
Source: www.zentiva.cz