SOURCE: Recordati

April 13, 2010 07:17 ET

RECORDATI : SHAREHOLDERS APPROVE THE 2009 ACCOUNTS. DIVIDEND EUR 0.275 PER SHARE (+10.0%)

MILAN, ITALY--(Marketwire - April 13, 2010) - Shareholders approve 2009 results: Consolidated revenue EUR 747.5 million (+8.4%), operating income (EBIT) EUR 162.2 million (+12.1%), net income EUR 110.6 million (+10.1%).

- Dividend to be paid EUR 0.275 per share, an increase of 10.0% over dividend paid last year. Overall dividend EUR 54.4 million.

- Authorization to buy-back Recordati shares renewed.

- New stock option plan covering the four year 2010-2013 period approved.

Milan, 13 April 2010 - Today the Annual Meeting of Recordati Shareholders was held.

Recordati's Annual Shareholders' Meeting approved the company's 2009 financial accounts which were prepared according to IAS/IFRS. In addition, the group's consolidated statements, which were also prepared according to IAS/IFRS, were presented. The tables attached contain a summary of the 2009 financial statements. As previously announced on 5 March 2010 revenues are EUR 747.5 million (+8.4%), operating income (EBIT) is EUR 162.2 million (+12.1%), and net income is EUR 110.6 million (+10.1%). International sales account for 71.5% of total sales.

As proposed by the Board of Directors, the shareholders approved a dividend of EUR 0.275 per share (EUR 0.25 the preceding year) to be paid to the shares outstanding as from 29 April 2009 (trading ex-dividend as from 26 April 2009), excluding those shares in treasury stock. The overall amount of the dividend to be paid is EUR 54.4 million compared to EUR 49.3 million paid the preceding year, an increase of 10.3%.

Furthermore, the Shareholders' Meeting renewed the buy-back authorization granted by the Shareholders on 7 April 2009 for a period ending with the approval of the 2010 accounts. The proposal to renew the authorization to buy back and dispose of Recordati shares grants the Board the possibility of using shares for equity acquisitions or as consideration for strategic agreements; of allowing the company the possibility of investing in its own shares; and of servicing current and future stock option plans with existing shares. The company would be allowed to purchase up to 20,000,000 Recordati existing ordinary (common) shares, which includes those shares held in Treasury stock at any given time, for a maximum cash outlay of EUR 120,000,000 million. The purchase price must be at least equal to the shares' nominal value (EUR 0.125) and must not exceed the average official Stock Exchange price recorded over the 5 trading days prior to the transaction, plus 5%. Possible purchases must comply with the Issuers' Regulations. No shares were purchased under the authorization granted by the Shareholders' Meeting of 7 April 2009. The company currently has 11,472,355 shares in Treasury stock which amounts to 5.486% of the current share capital.

The Shareholders' Meeting also approved a new stock option plan covering the four year 2010-2013 period, the details of which have already been published and communicated to the public and are available in the relative explanatory document as required by law. The explanatory document, which is the object of the Board's explanatory report on the third item of the agenda of the Shareholders' Meeting, can be found on the company's website at:

http://www.recordati.com/rec_en/investors/shareholders_meetings/.

First quarter 2010

Revenue performance in the first quarter 2010 is positive despite the expiry in January, in the main European countries, of the composition of matter patent covering lercanidipine. Group sales are EUR 186 million, an increase of 1.2% over those in the first quarter of the preceding year. Sales of lercanidipine in the first quarter decreased by 13,5% while those of the combined lercanidipine plus enalapril product grew by over 100%. Overall, sales of the lercanidipine franchise are EUR 51 million.

Recordati, established in 1926, is a European pharmaceutical group, listed on the Italian Stock Exchange (Reuters RECI.MI, Bloomberg REC IM, ISIN IT 0003828271),with a total staff of over 2,800, dedicated to the research, development, manufacturing and marketing of pharmaceuticals. It has headquarters in Milan, Italy, operations in the main European countries, and a growing presence in the new markets of Central and Eastern Europe. A European field force of around 1,400 medical representatives promotes a wide range of innovative pharmaceuticals, both proprietary and under license, in a number of therapeutic areas including a specialized business dedicated to treatments for rare diseases. Recordati's current and growing coverage of the European pharmaceutical market makes it a partner of choice for new product licenses from companies which do not have European marketing organizations. Recordati is committed to the research and development of new drug entities within the cardiovascular and urogenital therapeutic areas and of treatments for rare diseases. Consolidated revenue for 2009 was EUR 747.5 million, operating income was EUR 162.2 million and net income was EUR 110.6 million.

For further information:

Recordati website: www.recordati.com

Investor Relations Media Relations

Marianne Tatschke Claudio Rossetti (Echo Comunicazione d'Impresa)

(39)0248787393 (39)02 62694736

e-mail: inver@recordati.it e-mail: crossetti@echocom.it

Statements contained in this release, other than historical facts, are "forward-looking statements" (as such term is defined in the Private Securities Litigation Reform Act of 1995). These statements are based on currently available information, on current best estimates, and on assumptions believed to be reasonable. This information, these estimates and assumptions may prove to be incomplete or erroneous, and involve numerous risks and uncertainties, beyond the Company's control. Hence, actual results may differ materially from those expressed or implied by such forward-looking statements. All mentions and descriptions of Recordati products are intended solely as information on the general nature of the company's activities and are not intended to indicate the advisability of administering any product in any particular instance.

RECORDATI GROUP

Summary of consolidated results prepared in accordance with the International Accounting Standards and International Financial Reporting Standards (IAS/IFRS)

(thousands of EUR )

+-------------------------+-----------+-----------+----------+
|INCOME STATEMENT         |    2009   |    2008   |  Change %|
+-------------------------+-----------+-----------+----------+
|REVENUE                  |    747,524|    689,634|       8.4|
+-------------------------+-----------+-----------+----------+
|Cost of sales            |  (235,623)|  (222,196)|       6.0|
+-------------------------+-----------+-----------+----------+
|GROSS PROFIT             |    511,901|    467,438|       9.5|
+-------------------------+-----------+-----------+----------+
|Selling expenses         |  (223,724)|  (214,245)|       4.4|
+-------------------------+-----------+-----------+----------+
|Research and development |   (69,445)|   (58,860)|      18.0|
|expenses                 |           |           |          |
+-------------------------+-----------+-----------+----------+
|General & administrative |   (43,718)|   (39,372)|      11.0|
|expenses                 |           |           |          |
+-------------------------+-----------+-----------+----------+
|Other income (expenses), |   (12,810)|   (10,231)|      25.2|
|net                      |           |           |          |
+-------------------------+-----------+-----------+----------+
|OPERATING INCOME         |    162,204|    144,730|      12.1|
+-------------------------+-----------+-----------+----------+
|Financial income         |    (5,800)|    (6,584)|    (11.9)|
|(expenses), net          |           |           |          |
+-------------------------+-----------+-----------+----------+
|Other investments gain   |    (3,752)|          0|      n.s.|
|(loss), net              |           |           |          |
+-------------------------+-----------+-----------+----------+
|PRE-TAX INCOME           |    152,652|    138,146|      10.5|
+-------------------------+-----------+-----------+----------+
|Provision for income     |   (42,086)|   (37,717)|      11.6|
|taxes                    |           |           |          |
+-------------------------+-----------+-----------+----------+
|NET INCOME               |    110,566|    100,429|      10.1|
+-------------------------+-----------+-----------+----------+
|Attributable to:         |           |           |          |
+-------------------------+-----------+-----------+----------+
|Equity holders of the    |    110,560|    100,424|      10.1|
|parent                   |           |           |          |
+-------------------------+-----------+-----------+----------+
|Minority interests       |          6|          5|      20.0|
+-------------------------+-----------+-----------+----------+

+--------------------+---------+---------+----------+
|  EARNINGS PER SHARE|   2009  |   2008  |  Change %|
+--------------------+---------+---------+----------+
|  Basic             |    0.561|  ? 0.511|       9,8|
+--------------------+---------+---------+----------+
|  Diluted           |  ? 0.541|  ? 0.501|       8,0|
+--------------------+---------+---------+----------+
+--------------------+---------+---------+----------+

Earnings per share (EPS) are based on average shares outstanding during each year, 197,222,274 in 2009 and 196,667,301 in 2008, net of average treasury stock which amounted to 11,472,355 shares in both 2009 and 2008.

Diluted earnings per share is calculated taking into account new shares authorized but not yet issued.

+-------------------------+---------+---------+----------+
|COMPOSITION OF REVENUE   |   2009  |   2008  |  Change %|
+-------------------------+---------+---------+----------+
|Pharmaceuticals          |  720,636|  658,436|       9.4|
+-------------------------+---------+---------+----------+
| Pharmaceutical chemicals|   26,888|   31,198|    (13.8)|
+-------------------------+---------+---------+----------+
|TOTAL                    |  747,524|  689,634|       8.4|
+-------------------------+---------+---------+----------+
| - of which International|  534,836|  483,786|      10.6|
+-------------------------+---------+---------+----------+
+-------------------------+---------+---------+----------+

RECORDATI GROUP

Summary of consolidated results prepared in accordance with the International Accounting Standards and International Financial Reporting Standards (IAS/IFRS)

(thousands of EUR )

+-------------------------+------------+------------+
|ASSETS                   |  31.12.2009|  31.12.2008|
+-------------------------+------------+------------+
|Property, plant and      |      55,381|      57,969|
|equipment                |            |            |
+-------------------------+------------+------------+
|Intangible assets        |      96,512|      92,635|
+-------------------------+------------+------------+
|Goodwill                 |     303,653|     289,822|
+-------------------------+------------+------------+
|Equity investments       |       3,716|       7,532|
+-------------------------+------------+------------+
|Non-current receivables  |       3,804|       5,199|
+-------------------------+------------+------------+
|Deferred tax assets      |      21,793|      22,650|
+-------------------------+------------+------------+
|TOTAL NON-CURRENT ASSETS |     484,859|     475,807|
+-------------------------+------------+------------+
|Inventories              |      86,627|      83,087|
+-------------------------+------------+------------+
|Trade receivables        |     132,621|     137,015|
+-------------------------+------------+------------+
|Other receivables        |      22,990|      22,741|
+-------------------------+------------+------------+
|Other current assets     |       2,607|       2,346|
+-------------------------+------------+------------+
|Short-term financial     |      93,775|      94,951|
|investments, cash and    |            |            |
|cash equivalents         |            |            |
+-------------------------+------------+------------+
|TOTAL CURRENT ASSETS     |     338,620|     340,140|
+-------------------------+------------+------------+
|TOTAL ASSETS             |     823,479|     815,947|
+-------------------------+------------+------------+

+-------------------------+------------+------------+
|EQUITY AND LIABILITIES   |  31.12.2009|  31.12.2008|
+-------------------------+------------+------------+
|Share capital            |      26,141|      26,063|
+-------------------------+------------+------------+
|Capital in excess of par |      83,719|      81,320|
|value                    |            |            |
+-------------------------+------------+------------+
|Treasury stock           |    (59,103)|    (59,103)|
+-------------------------+------------+------------+
|Hedging reserve          |     (4,040)|     (2,532)|
+-------------------------+------------+------------+
|Translation reserve      |     (6,178)|     (7,096)|
+-------------------------+------------+------------+
|Other reserves           |      25,025|      25,733|
+-------------------------+------------+------------+
|Retained earnings        |     332,836|     280,920|
+-------------------------+------------+------------+
|Net income for the period|     110,560|     100,424|
+-------------------------+------------+------------+
|GROUP SHAREHOLDERS'      |     508,960|     445,729|
|EQUITY                   |            |            |
+-------------------------+------------+------------+
|Minority interest        |          19|          13|
+-------------------------+------------+------------+
|SHAREHOLDERS' EQUITY     |     508,979|     445,742|
+-------------------------+------------+------------+
|Loans due after one year |      79,990|      81,409|
+-------------------------+------------+------------+
|Employees' termination   |      19,895|      19,624|
|pay                      |            |            |
+-------------------------+------------+------------+
|Deferred tax liabilities |       5,661|       7,399|
+-------------------------+------------+------------+
|Other non-current        |       6,179|       3,189|
|liabilities              |            |            |
+-------------------------+------------+------------+
|TOTAL NON-CURRENT        |     111,725|     111,621|
|LIABILITIES              |            |            |
+-------------------------+------------+------------+
|Trade payables           |      81,751|      88,598|
+-------------------------+------------+------------+
|Other payables           |      48,406|      47,147|
+-------------------------+------------+------------+
|Tax liabilities          |      12,555|      10,278|
+-------------------------+------------+------------+
|Other current liabilities|         517|         385|
+-------------------------+------------+------------+
|Provisions               |      21,978|      15,094|
+-------------------------+------------+------------+
|Fair value of hedging    |       4,040|       2,532|
|derivatives (cash flow   |            |            |
|hedge)                   |            |            |
+-------------------------+------------+------------+
|Fair value of hedging    |       2,257|       1,505|
|derivatives (fair value  |            |            |
|hedge)                   |            |            |
+-------------------------+------------+------------+
|Loans due within one year|       2,419|       2,201|
+-------------------------+------------+------------+
|Bank overdrafts          |      28,852|      90,844|
+-------------------------+------------+------------+
|TOTAL CURRENT LIABILITIES|     202,775|     258,584|
+-------------------------+------------+------------+
|TOTAL EQUITY AND         |     823,479|     815,947|
|LIABILITIES              |            |            |
+-------------------------+------------+------------+

RECORDATI S.P.A.

Summary of results prepared in accordance with the International Accounting Standards and International Financial Reporting Standards (IAS/IFRS)

(thousands of EUR )

+------------------+---------+---------+--------+
|                  |   2009  |   2008  |  Var. %|
+------------------+---------+---------+--------+
|  Net revenue     |  256,076|  248,872|     2.9|
+------------------+---------+---------+--------+
|  Operating income|   48,144|   44,701|     7.7|
+------------------+---------+---------+--------+
|  Pre-tax income  |   91,329|   67,097|    36.1|
+------------------+---------+---------+--------+
|  Net income      |   76,068|   52,945|    43.7|
+------------------+---------+---------+--------+
+------------------+---------+---------+--------+

+-------------------------+------------+------------+
|                         |  31.12.2009|  31.12.2008|
+-------------------------+------------+------------+
|Non-current assets       |     383,069|     356,054|
+-------------------------+------------+------------+
|Current assets           |     149,399|     201,809|
+-------------------------+------------+------------+
|Total assets             |     532,468|     557,863|
+-------------------------+------------+------------+
|Shareholders' equity     |     300,830|     273,161|
+-------------------------+------------+------------+
|Non-current liabilities  |      94,539|      95,372|
+-------------------------+------------+------------+
|Current liabilities      |     137,099|     189,330|
+-------------------------+------------+------------+
|Total liabilities and    |     532,468|     557,863|
|Shareholders  equity     |            |            |
+-------------------------+------------+------------+

DECLARATION BY THE MANAGER RESPONSIBLE FOR PREPARING THE COMPANY'S FINANCIAL REPORTS

The manager responsible for preparing the company's financial reports Fritz Squindo declares, pursuant to paragraph 2 of Article 154-bis of the Consolidated Law on Finance, that the accounting information contained in this press release corresponds to the document results, books and accounting records.

This information is provided by HUGIN

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