PROTEK 
By 11.02.2014
Protek Group announces preliminary operational results for Q4-2013 and 12M-2013
Protek Group (PRTK: MICEX), one of the major pharmaceutical companies in Russia has announced its preliminary operating results for Q4-2013 and 12M-2013 according to the management accounts (unaudited).
Group Operating Highlights by segment:
Revenue, RUB mln. | Group | Distribution | Retail Sales | Production | Eliminations |
Q4-2013 | 39,022 | 32,868 | 5,587 | 2,620 | (2,053) |
Q4-2012 | 38,247 | 33,050 | 4,780 | 2,021 | (1,604) |
Change, 2013/2012, % | 2.0% | (0.5)% | 16.9% | 29.7% | |
12M-2013 | 139,305 | 118,818 | 19,895 | 7,892 | (7,300) |
12M-2012 | 125,502 | 109,275 | 16,405 | 6,216 | (6,394) |
Change, 2013/2012, % | 11.0% | 8.7% | 21.3% | 27.0% |
- In Q4-2013, the consolidated revenue of the Group* increased by 2.0% y-o-y to RUB 39,022 mln.
- In 12M-2013, the Group's consolidated revenue increased by 11.0% y-o-y to RUB 139,305 mln.
- The Group's revenue growth for 12M-2013 was driven by the Retail and Production Segments, each showing an uptrend.
Distribution Segment:
Key company of the segment is ZAO CV Protek.
Distribution Segment Operating Highlights:
Revenue, RUB mln. | |
Q4-2013 | 32,868 |
Q4-2012 | 33,050 |
Change, 2013/2012, % | (0.5)% |
12M-2013 | 118,818 |
12M-2012 | 109,275 |
Change, 2013/2012, % | 8.7% |
- In Q4-2013, the revenue of the Distribution Segment decreased by 0.5% y-o-y to RUB 32,868 mln.
- In 12M-2013, the segment's revenue increased by 8.7% y-o-y to RUB 118,818 mln. The Distribution Segment makes up 81% of the Group's total revenue**.
Retail Sales Segment
Key company of the segment is OOO Rigla.
- Total of 992 retail outlets were active as at December 31, 2013.
- In Q4-2013, 72 pharmacies were organically opened and 5 pharmacies were closed.
- In 12M-2013, 223 pharmacies were organically opened and 36 pharmacies were closed, the total growth being 187 pharmacies.
Retail Sales Segment Operating Highlights:
Revenue, | Traffic, '000 | |
Q4-2013 | 5,587 | 15,806 |
Q4-2012 | 4,780 | 14,506 |
Change, 2013/2012, % | 16.9% | 9.0% |
12M-2013 | 19,895 | 59,188 |
12M-2012 | 16,405 | 52,869 |
Change, 2013/2012, % | 21.3% | 12.0% |
- In Q4-2013, the revenue of the Retail Sales Segment increased by 16.9% to RUB 5,587 mln.
- In 12M-2013, the segment's revenue increased by 21.3% to RUB 19,895 mln. The Retail Sales Segment makes up 13.6% of the Group's total revenue**.
Like-for-Like (L-f-L) Sales***:
As at December 31, 2013, there were 580 Like-for-Like pharmacies in the Retail Sales Segment.
L-f-L Retail Sales Segment Operating Highlights:
L-f-L revenue change, % | Traffic change, % | Average ticket change, % | |
Q4-2013/Q4-2012 | 1.5% | (6.4)% | 8.4% |
12M-2013/12M-2012 | 7.2% | (2.7)% | 10.1% |
- In Q4-2013, the revenue of L-f-L pharmacies increased by 1.5%.
- In 12M-2013, their revenue increased by 7.2%.
"Bud Zdorov!" discount pharmacy chain expansion:
- As at December 31, 2013, Rigla's "Bud Zdorov!" discount brand was represented in 306 pharmacies.
- Over 12M-2013, "Bud Zdorov!" L-f-L pharmacy revenue increased by 7.6% y-o-y, traffic down 1.6%.
Private label expansion in Retail
- As at December 31, 2013, the Retail private label product line included 737 items, 13% up Q4-2013/Q3-2013.
- As at December 31, 2013, private label products comprised 3.7% and 9.0% of the segment's total revenue and gross profit, respectively.
Production Segment
Key company of the segment is ZAO PharmFirm Sotex.
Production Segment Operating Highlights:
Revenue, RUB mln. | Volume, mln. packages | Own brands revenue, RUB mln. | |
Q4-2013 | 2,620 | 14.54 | 1,494 |
Q4-2012 | 2,021 | 10.94 | 1,230 |
Change, 2013/2012, % | 29.7% | 33.0% | 21.5% |
12M-2013 | 7,892 | 38.42 | 4,242 |
12M-2012 | 6,216 | 27.57 | 2,716 |
Change, 2013/2012, % | 27.0% | 39.0% | 56.2% |
• In Q4-2013, the Production Segment's revenue increased by 29.7% y-o-y to RUB 2,620 mln.
• In 12M-2013, the segment's revenue increased by 27.0% y-o-y to RUB 7,892 mln. The Production Segment makes up 5.4% of the Group's total revenue**.
• In Q4-2013, own brand revenue grew by 21.5% to RUB 1,494 mln. against RUB 1,230 mln. in Q4-2012.
• For 12M-2013, own brand revenue surged by 56.2% to RUB 4,242 mln. against RUB 2,716 mln. for 12M-2012.
• In 12M-2013, own product sales was driven by the launch of new products and dosages: Chondrogard 2 ml, AnviMax Capsules, Sustaguard and Influnet.
• The 2013 revenue boost is due to increased own product sales. Products of AnviLab (AnviMax, Antigrippin products) and Sotex (Chondrogard, Cereton, Amelotex, Neurox) were the key revenue drivers. Among licensed products, Actovegin, Metipred and Synocrom showed a significant uptrend.
Vadim Muzyayev, President of Protek Group: "In 2013, Protek Group's revenue grew by 11%, our market cap up by over 60%. The Distribution Segment showed an 8.7% revenue growth in 12M-2013. The Distribution Segment's expansion is slowing down gradually, which is a sign of the growing market competition and reducing margins in the distribution business. The Group's revenue growth is mainly powered by Production and Retails Sales, having shown a strong uptrend in the reporting period (27.0% and 21.3%, respectively)."
*Unaudited management accounts of Protek Group for Q4-2013 and 12 M-2013, preliminary data.
**Calculated as the share of each segment in the total revenue (excluding unallocated revenue and eliminations).
***Like-for-Like data on the pharmacies opened or acquired over the 24 months immediately preceding the reporting period and not closed during the reporting period.
***
Matters discussed in this document may constitute forecasts and other forward-looking statements concerning future events or financial performance of the Company. The words "believe", "expect", "anticipate", "intend", "plan", "estimate", "aim", "forecast", "project", "will", "may", "might", "should", "could" and similar expressions (or their negative) identify certain of these forward-looking statements.
The Company warns that these forward-looking statements are but forecasts that may differ significantly from actual events and performance. The Company does not intend to supplement, amend, update or revise any of the forward-looking statements contained in this document to reflect any events or circumstances occurring after the publication of this document, or any extraordinary circumstances.
Multiple factors, including, in particular, overall economic conditions, competitive environment and many other risks inherent to the Company and its operations, may result in actual performance differing substantially from these forecasts and forward-looking statements of the Company .
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