Slovakofarma '99 pre-tax profits up 60% to Koruna594m

12 May 2000 18:40  [Source: ICIS news]

PRAGUE (CNI)--Strong sales growth in key European markets, except Germany, enabled Slovak pharmaceutical company Slovakofarma to post Friday a 60% jump in 1999 pre-tax profits to Koruna594m ($12.5m/Euro14.0m).

Operating profits last year were 21% higher at Koruna806m on sales revenues 12% up at almost Koruna6bn.

It is looking to consolidate its position in central and eastern European markets, and then gradually expand its activities in western Europe and the US - possibly in tandem with a strategic partner.

Slovakofarma increased research and development (R&D) spend during the year by 7.6% to Koruna155m and also invested more in marketing and distribution efforts, with the spend up 13% to Koruna647m. Financing costs were down 28% to Koruna212m, contributing to net profits soaring 49% to Koruna339m despite a higher tax bill. The Hlohovec-based firm said that the corporate tax rate was slashed from 40% to 29% on 1 January 2000.

The firm, which employs more than 2100 workers, said the boost to profits resulted mainly from improved sales in its main territories with the exception of Germany, where sales were hit by the discontinuation of vitamin E substance production. Nearly half of company's non-consolidated sales are in the Czech Republic and about one-third of revenues come from the domestic market. Slovakofarma achieved its first, "strategically important" sales in territories such as the US and Austria.

By: Katka Krosnar
+44 20 8652 3214

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