Protek : announces preliminary operational results for Q3-2015 and 9M-2015

29.10.2015

Protek Group announces preliminary operational results for Q3-2015 and 9M-2015

Protek Group (PRTK: MICEX), a major Russian pharmaceutical company announces its preliminary operational results for Q3-2015 and 9M-2015 according to the management accounts (unaudited)*.

Group Revenue Highlights by Segment*:

Revenue, RUB mln.	Group	Distribution	Retail	Production	Eliminations
Q3-2015	50,544	44,524	7,309	1,900	-3,189
Q3-2014	38,067	32,281	5,777	1,900	-1,890
Change, Q3-2015 / Q3-2014	32.8 %	37.9 %	26.5 %	0%	68.7%
9M-2015	134,776	115,564	21,496	5,625	-7,909
9M-2014	109,342	92,633	16,977	5,167	-5,435
Change, 9M-2015 / 9M-2014	23.3 %	24.8 %	26 .6 %	8.9 %	45.5 %

• In Q3-2015, the consolidated revenue of the Group increased by 32.8% y-o-y to RUB 50,544 mln.
• In 9M-2015, the Group's consolidated revenue increased by 23.3% y-o-y to RUB 134,776 mln.
• The Group's revenue growth for 9M-2015 was driven by all the business segments, each showing an uptrend.

Distribution Segment:

Distribution Segment Revenue Highlights:

	Revenue, RUB mln.
Q3-2015	44,524
Q3-2014	32,281
Change, Q3-2015 / Q3-2014	3 7 .9 %
9M-2015	115,564
9M-2014	92,633
Change, 9M-2015 / 9M-2014	24 .8 %

• In 9M-2015, the Distribution Segment made up 81.0% of the Group's total revenue**.

Retail Segment

• Total of 1,387 retail outlets were active as at 30 September 2015.
• In Q3-2015, 88 pharmacies were organically opened and 26 pharmacies were closed.
• In 9M-2015, 239 pharmacies were organically opened and 54 pharmacies were closed.
• In 9M-2015, the Retail Segment made up 15.1 % of the Group's total revenue**.

Retail Segment Operating Highlights:

	Revenue, RUB mln.	Traffic, '000
Q3-2015	7,309	18,505
Q3-2014	5,777	16,531
Change, Q3-2015 / Q3-2014	26.5 %	11.9 %
9M-2015	21,496	54,682
9M-2014	16,977	48,540
Change, 9M-2015 / 9M-201 4	26.6 %	12.7 %

Like-for-Like (L-f-L) Sales***:
As at 30 September 2015, there were 819 Like-for-Like pharmacies in the Retail Segment.

L-f-L Retail Segment Operating Highlights:

	L-f-L revenue change, %	Traffic change, %	Average ticket change, %
Q3-2015 / Q3-2014	-1,5	-11.8	11.8
9M-2015 / 9M-2014	4.1	-8.5	13.8

'Bud Zdorov!' and 'Zhivika' low price pharmacies:

• As at 30 September 2015, Rigla's 'Bud Zdorov!' brand, was represented in 705 pharmacies and Zhivika brand in 176 pharmacies.
• In 9M-2015, 'Zhivika' pharmacies L-f-L revenue increased by 18.2% y-o-y, traffic L-f-L was up 2.5%.

Production Segment
Production Segment Operating Highlights:

	Revenue, RUB mln.	Volume, mln. packages	Proprietary brands ' revenue, %
Q3-2015	1,900	7.14	60.2
Q3-2014	1,900	9.48	58.7
Change, Q3-2015 / Q3-2014	0%	-24.7 %
9M-2015	5,625	17.45	67.8
9M-2014	5,167	23.77	58.3
Change, 9M-2015 / 9M-2014	8.9%	-26.6%

• In Q3-2015, the proprietary brands' revenue surged by 2.6% to RUB 1,144 mln. against RUB 1,115 mln. in Q3-2014.
• In 9M-2015, the proprietary brands' revenue surged by 26.6% to RUB 3,811 mln. against RUB 3,010 mln. in 9M-2014.
• The 9M-2015 revenue boost was due to a sales increase of proprietary products (Ñhondrogard, Eralfon, Enicsum, Cereton, Nemulex).
• In 9M-2015, the Production Segment made up 3.9 % of the Group's total revenue**.

Vadim Muzyaev, President of Protek Group: 'Consolidated revenue in 9M-2015 reached 134.8 billion Rubles, +23.3% y-o-y. In Q3-2015 revenue growth rate was even higher: 32.8%, total Group's revenue accounted for 50.5 billion. Rubles. Such positive results were stipulated by growth in Distribution segment (+24.8% for 9M-2015 and +37.9% for 3Q-2015 correspondingly) and Retail segment (+26.6% and +26.5% accordingly). Pharmaceutical market growth rate in Q3-2015 was 5.1% in value terms whereas in packages it fell drastically -7.8% according to DSM Group data'.

Contacts
Public Relations Department, Protek Group
Phone: [phone] (ext. 4512) e-mail: [e-mail]
[e-mail]
www.protek-group.ru

*

Unaudited management accounts of Protek Group for Q3-2015 and 9M-2015, 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.