RECORDATI
milan : REC

May 06, 2011 06:40 ET

Recordati Sales and Income Increase in the First Quarter 2011; 3 Year Business Plan Updated

MILAN, ITALY--(Marketwire - May 6, 2011) -


* Consolidated revenue EUR 197.8 million, + 6.4%.

* Operating income EUR 44.3 million, + 2.9%.

* Net income EUR 31.4 million, + 4.8%.

* Net financial position*: net cash of EUR 37.5 million.

* Procto-Glyvenol® acquired from Novartis Consumer Health

* 2011-2013 Business Plan updated.


Milan, 6 May 2011 - The Board of Directors of Recordati S.p.A. approved the Group's consolidated results for the first quarter 2011 prepared in accordance with International Accounting Standards and International Financial Reporting Standards (IAS/IFRS) and in particular as per IAS 34 requirements for interim reporting. These financial statements are available at the company's offices, at Borsa Italiana S.p.A. and on the company's website: http://www.recordati.com/rec_en/investors/reports/

Recordati presents its First quarter 2011 results and its updated 2011- 2013 Business Plan, which was approved by the Board of Directors, to the financial community and specialized press today at 4.00 pm at Borsa Italiana. The complete presentation will be placed on the company's website at the following address: http://www.recordati.com/rec_en/investors/presentations/

Financial highlights

* Consolidated revenue in the first quarter of 2011 is EUR 197.8 million, up by 6.4% compared to the same period of the preceding year, despite sales of lercanidipine down by 19.7% as a result of the entry of generics into the market following this product's patent expiry in January 2010 .

* Operating income, at 22.4% of sales, is EUR 44.3 million, an increase of 2.9% over the same period of the preceding year. Selling expenses increase by 8.5% mainly to support the launch of the new products.

* Net income is EUR 31.4 million, an increase of 4.8%, higher than that recorded by operating income thanks to a lower tax rate.

* Net financial position* at 31 March 2011 records net cash of EUR 37.5 million, a decrease of of EUR 8.5 million as compared to 31 December 2010 due to the acquisition of the new product Procto-Glyvenol® and the purchase of own shares. Shareholders' equity increased to EUR 599.1 million.

* Cash and short-term financial investments net of bank overdrafts and medium/long-term loans which include the measurement at fair value of hedging derivatives (fair value hedge).

Business development news

The marketing authorizations, the brand and the rights to the product Procto- Glyvenol® were acquired from Novartis Consumer Health for the following countries: Poland, Russia, Turkey, Romania, Czech Republic, Slovakia, Ukraine, Portugal, the Baltic countries and Cyprus. Procto-Glyvenol® is indicated for the localized treatment of internal and external hemorrhoids and is currently on the market in the countries included in the agreement.

Business plan update

The development of the Recordati group will continue to be focused on the European pharmaceutical markets, both in Western and the emerging CEE countries. The group will develop its business through the growth of its product portfolio, which includes the launch of its new approved products, the acquisition of new product licenses, the enhancement of its pipeline of products in development and by entering new markets.

Excluding the contribution of further acquisitions which may be completed within the period under analysis, our financial performance expectations for the 2011-2013 period are the following:

* Expectations for the full year 2011 are confirmed: revenues of around EUR 750 million, operating income of around EUR 160 million and net income of around EUR 110 million.

* Targets for 2012: revenues of around EUR 810 million, operating income of around EUR 170 million and net income of around EUR 120 million.

* Targets for 2013: revenues of around EUR 875 million, operating income of around EUR 185 million and net income of around EUR 132 million.

Management comments

"The results of the first quarter and the Business Plan that we have just presented show that we are starting a new growth cycle, thanks to the quality of our product portfolio and the development of our business in the new emerging markets. Our new plan includes an acceleration of sales growth from 5% to 8% over the period and an increase of around 10% per year in the 2012 and 2013 net income" declared Giovanni Recordati, Chairman and Chief Executive Officer. "Furthermore, we will continue with our policy to acquire new products to develop as well as new geographical presence in order to enhance both sales and profits growth."

Conference Call

A simultaneous translation into English of the proceedings, which will start at 4.00 pm, is available via conference call. Dial-in numbers for the call in English and access ID are:

Italia               +39 064 521 7063
UK                   +44 (0) 20 7136 2058
USA                  +1 718 247 0884
Francia              +33 (0) 1 70994301
Germania             +49 (0) 69 5007 1309

ID to access the call in the English language: 3380664

A set of slides which will be referred to during the call will be available on our website: http://www.recordati.com/rec_en/investors/presentations/

Callers are invited to dial-in 10 minutes before conference time. If conference operator assistance is required during the connection please digit * followed by 0 or call +353 23 8832493. A recording of the conference call will be subsequently placed on the website: http://www.recordati.com/rec_en/investors/presentations/

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 2010 was EUR 728.1 million, operating income was EUR 154.8 million and net income was EUR 108.6 million.

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.

SALES AND INCOME INCREASE IN THE I QUARTER 2011. 3 YEAR BUSINESS PLAN: http://hugin.info/143644/R/1513274/449065.pdf


This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that:

(i) the releases contained herein are protected by copyright and other applicable laws; and

(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: RECORDATI via Thomson Reuters ONE

[HUG#1513274]

Contact Information

  • For further information:

    Recordati website: www.recordati.com

    Investor Relations
    Marianne Tatschke
    (39)0248787393
    e-mail: Email Contact

    Media Relations
    Claudio Rossetti (Echo Comunicazione d'Impresa)
    (39)02 62694736
    e-mail: Email Contact