STADA Arzneimittel AG — Earnings Release 2004

Nov 11, 2004

News Details

Corporate | 11 November 2004 07:25

STADA: Sales and earnings increased in Q3/2004 – Prospects improved as expected

Corporate-news announcement sent by DGAP. The sender is solely responsible for the contents of this announcement. ——————————————————————————– STADA: Sales and earnings increased in Q3/2004 – Prospects improved as expected In the third quarter of 2004, STADAs net income rose by +10% to EUR 12.8 million in comparison to the third quarter of 2003 (Q3/2003: EUR 11.6 million). Group sales in the third quarter of 2004 rose by +5% to EUR 195.7 million compared to the previous year (Q3/2003: EUR 187.2 million). Considering the first nine months of current fiscal 2004 cumulatively, net income including special items decreased by -6% to EUR 32.8 million compared to the first nine months of 2003 (1-9/2003: EUR 34.8 million), due in particular to the weak second quarter of 2004. During the same period, Group sales rose by +9% to EUR 592.3 million (1-9/2003: EUR 545.7 million). During the current fiscal 2004, STADA remains subject to severe healthcare policy burdens, for example in Germany as a result of the law on modernizing the public health insurance system (“GKV-Modernisierungsgesetz” or “GMG”), which came into effect on January 1, 2004. In addition, local challenges also arose in a few other national markets, such as Italy, Spain and the U.S. Therefore, 2004 continues to be a difficult year for STADA. In the opinion of the Executive Board, however, STADAs business prospects improved again in the third quarter of 2004 as expected. Despite all current burdens, measures introduced during the course of the year to improve earnings in combination with a significantly improved tax rate led to an increase in net income again in the third quarter of 2004 compared to the previous year. This should also lead to an improved situation in the current fourth quarter of 2004 as well as in fiscal 2005 compared to the previous year periods. The Executive Board continues to believe that the current targets for fiscal 2004 remain achievable: Following an increase in sales of +8% after the first ten months of the current fiscal 2004, double-digit percentage sales growth for 2004 as a whole is still possible. The Executive Board also expects that net income for the whole of 2004 will be in the range of last years level. The outlook for 2005 is optimistic. The measures to increase earnings will continue to have positive impacts in the next fiscal year. Operating business will be further strengthened by a continuous flow of product launches. From todays perspective, healthcare policy decisions in the German market made in the third quarter and in the current fourth quarter of 2004 should also significantly reduce the charges imposed by mandatory GMG discounts in 2005. Overall, the Executive Board believes that 2005 should see a return to STADAs traditional profit-oriented growth course, with double-digit percentage increases in both sales and earnings. The complete report on the first nine months of 2004 can be found on the STADA website at http://www.stada.com. Further information: STADA Arzneimittel AG / Corporate Communications / 61118 Bad Vilbel / Germany Ph: +49(0) 6101 603-113 / Fax: +49(0) 6101 603-506 / E-mail: communications@stada.de Or visit our website at http://www.stada.com end of message, (c)DGAP 11.11.2004 ——————————————————————————– WKN: 725180; ISIN: DE0007251803; Index: MDAX Listed: Amtlicher Markt in Düsseldorf und Frankfurt (Prime Standard); Freiverkehr in Berlin-Bremen, Hamburg, Hannover, München und Stuttgart 110725 Nov 04