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Recordati: Board Approves the 2011 Accounts


March 7, 2012 - Milan, Italy


RECORDATI: BOARD APPROVES THE 2011 ACCOUNTS. REVENUE EUR 762.0 MILLION(+4.7%),OPERATING INCOME EUR 163.5 MILLION (+5.6%), NET INCOME EUR 116.4 MILLION(+7.2%).2011 DIVIDEND EUR 0.30 (+9.1%).


* Consolidated revenue EUR 762.0 million, + 4.7%.

* Operating income EUR 163.5 million, + 5.6%.

* Net income EUR 116.4 million, + 7.2%.

* Net financial position*: net debt of EUR 55.7 million.

* Dividend for 2011 EUR 0.30 per share, of which EUR 0.20 already paid.

* Targets for 2012: sales between EUR 810 and EUR 830 million,operating incomebetween EUR 160 and EUR 170 million and net income between EUR 115 andEUR 120 million.

* Annual Meeting of Shareholders convened for 19 April 2012, thesoleconvocation date.

Recordati's Board of Directors approved the consolidatedfinancial statements for the year 2011 as well as Recordati S.p.A.'saccountsand the corporate governance and ownership report as required by art. 123bis ofthe Consolidated Law on Financial Intermediation. The financialstatements atand for the year ended 31 December 2011, together with the aforesaidreport andthe reports issued by the independent and by the statutory Auditors will bemadeavailable at the company's head office and at Borsa ItalianaS.p.A. andpublished on the company's website www.recordati.com within the termsof thelaw.

Financial highlights

* Consolidated revenue in 2011 is EUR 762.0 million, up by 4.7% comparedto thepreceding year. Pharmaceutical sales are EUR 733.6 million, up by 4.5%andpharmaceutical chemical sales are EUR 28.4 million, an increase of 9.9%.

* Operating income, at 21.5% of sales, is EUR 163.5 million, a growthof 5.6%compared with the preceding year.

* Net income at 15.3% of sales is EUR 116.4 million (+7.2%), growing at afasterrate than operating income due to the lower incidence of financialcostsand taxes.

* Net financial position*at 31 December 2011 records net debt ofEUR 55.7million as opposed to net cash of EUR 46.0 million at 31 December 2010afterhaving acquired the Turkish company Dr. F. Frik Ilaç and the newproductProcto-Glyvenol® in addition to the payment of dividends.Shareholders'equity further increased to EUR 594.5 million.

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

Business development news

The achievements recorded and initiatives pursued in 2011 representimportantsteps for the international development of the Group.

To begin with, 100% of the share capital of Dr. F. Frik Ilaç A.S., aTurkishpharmaceutical company with headquarters in Istanbul, was acquired.Thevalue of the transaction (enterprise value) is of around $ 130 millionofwhich $ 74,5 million were paid at the closing in September. Of theremainingbalance a portion will be paid in trancheson future due dates and aportioncomprises the company's debt. This is the second acquisition Recordatihasmade in Turkey, where it acquired Yeni Ilaç in December 2008. Thecompanyhas a core portfolio of original prescription products both in primarycareand specialist areas and employs 350 personnel, of which around 260aremedical representatives. The acquisition of Dr. F. Frik Ilaç is animportantstep forward in our strategy to increase our business in theemergingmarkets of Central and Eastern Europe, where the pharmaceutical marketisgrowing at rates significantly greater than those of the WesternEuropeanmarket. With this acquisition Turkey becomes our third most importantmarketafter Italy and France.

The marketing authorizations, the brand and the rights to theproductProcto-Glyvenol® were acquired from Novartis Consumer Healthfor thefollowing countries: Poland, Russia, Turkey, Romania, CzechRepublic,Slovakia, Ukraine, Portugal, the Baltic countries and Cyprus.Procto-Glyvenol® is indicated for the localized treatment of internal andexternalhemorrhoids and is currently on the market in the countries included intheagreement.

The European roll-out of Livazo® (pitavastatin) started with itslaunches inSpain, by Recordati España and its co-marketer Esteve, and inPortugal, byJaba Recordati and its co-marketer Delta. Pitavastatin, availablein1mg, 2mg and 4mg tablets, is a novel statin indicated for the reductionofelevated total and LDL cholesterol in adult patients withprimaryhypercholesterolaemia and combined (mixed) dyslipidemia when responsetodiet and other non-pharmacological measures is inadequate. Thismedicinalproduct promises to be an effective new treatment for dyslipidemia,acondition associated with an increased risk for heart disease andstroke.The launch of Livazo® and Alipza® in Spain and in Portugalrepresents thefirst step in the commercialization in Europe of this new specialty.

Orphan Europe, the group's wholly-owned subsidiary dedicated totreatmentsfor rare diseases, received an approval to extend the use ofCarbaglu®(carglumic acid) to treat hyperammonaemia due to any of the threemainorganic acidaemias (isovaleric acidaemia, methylmalonic acidaemiaorpropionic acidaemia). Carbaglu® has orphan drug designation andsince2003 is indicated in the treatment of NAGS deficiency. Organicacidaemias(OA) are usually diagnosed in infancy, can be fatal, and affectespeciallythe central nervous system. They are a group of inherited raremetabolicdisorders which disrupt physiologic amino acid degradation causing abuild-up of organic acids, which in turn may inhibit the urea cyclefunction,leading to hyperammonaemia. Acute hyperammonaemia due to OA representsatrue medical emergency and Carbaglu®, by restoring the urea cycle andthusreducing blood ammonia levels, prevents brain damage.

Subsequent events and business outlook

Group consolidated sales during the first two months of 2012 are in linewiththe company's expectations for the whole year which target sales betweenEUR 810and EUR 830 million, operating income between EUR 160 and EUR 170million and netincome between EUR 115 and EUR 120 million.

Dividend

Based on the results obtained, the Board of Directors of the parent companywillpropose to the shareholders a dividend of EUR 0.10 per share, in fullbalance ofthe interim 2011 dividend of EUR 0.20, to be paid to all shares outstandingat ex-dividend date, excluding those in treasury stock, as from 26 April 2012,withex-dividend on 23 April 2012. The full 2011 dividend is therefore of EUR0.30 pershare (EUR 0.275 per share last year).

Further Board resolutions

The Board of Directors approved the following deliberation proposalsto besubmitted to the Annual and Extraordinary Meeting of Shareholders:

the renewal of the authorization to buy back and dispose of Recordatisharesuntil the Annual Shareholders' Meeting which will approve the 2012financialstatements;

the examination of the remuneration policy pursuant to article 123-terofLegislative Decree 58/98;

the renewal of the current five-year authorization to the Board ofDirectors- which expires on 11 April 2012 - pursuant to articles 2443 and 2420-terofthe Civil Code to effect share capital increases, against paymentand/orgratuitously, for a maximum nominal value of EUR 50 million, and toissuebonds convertible into ordinary shares and/or cum warrant, for amaximumamount of EUR 80 million. The current authorization was never exercised bytheBoard.

The objective of the proposal to renew the authorization to buy back anddisposeof Recordati shares until the Annual Shareholders' Meeting which willapprovethe 2012 financial statements is, as in previous years, to grant theBoard thepossibility: of using shares for equity acquisitions or asconsideration forstrategic agreements; of allowing the company to invest in its ownshares; andof constituting a stock of own shares to service current and future stockoptionplans. The company would be allowed to purchase up to 20,000,000Recordatiexisting ordinary (common) shares, which includes those shares held inTreasurystock at any given time, for a maximum cash outlay of EUR 150,000,000million.The purchase price must be at least equal to the shares' nominalvalue (EUR0.125) and must not exceed the average official Stock Exchange pricerecordedover the 5 trading days prior to the transaction, plus 5%. Possiblepurchaseswill be made on regulated markets and must comply with article132 ofLegislative Decree 58/1998 and with article 144-bis, comma 1.b) of theIssuers'Regulations as approved by CONSOB's resolution 11971/1999 and withmarketpractice allowed and recognized by CONSOB. At 7 March 2012 thecompany has9,780,790 shares in Treasury stock which amounts to 4.677% of the currentsharecapital. A total of 1,000,000 shares were purchased under the sharebuy-backprogram announced on 22 September 2011.

The Board of Directors also approved the Remuneration Report pursuant toarticle123-ter of the Legislative Decree 58/98, the first part of whichis theRemuneration Policy to be submitted to the Annual Shareholders'Meeting. TheRemuneration Report will be made available to the public within the termsof thelaw.

Call to an Annual and Extraordinary Shareholders' Meeting

The Board of Directors resolved to convene the Annual andExtraordinaryShareholders' Meeting to be held at the company's offices on 19 April2012 at10.00 am, the sole convocation date, with the following agenda:Annual Meeting

1. Annual Report of the Board of Directors; Statutory Auditors' Report;2011Financial Statements; inherent and consequent resolutions.

2. Remuneration policy pursuant to article 123-ter of the LegislativeDecree58/98; inherent and consequent resolutions.

3. Authorization proposal to buy back and dispose of Recordati shares;inherentand consequent resolutions.

Extraordinary Meeting

1. Authorization to the Board of Directors pursuant to articles 2420-ter and2443 of the Civil Code respectively for a maximum amount of EUR80,000,000 and EUR50,000,000; consequent modification of article 6 of the company's by-laws;inherent and consequent resolutions.

The convocation notice and the documents relative to the agendawill bepublished in the manner required and within the terms prescribed by currentlawsand regulations.

Recordati, established in 1926, is a European pharmaceutical group,listed onthe Italian Stock Exchange (Reuters RECI.MI, Bloomberg REC IM,ISIN IT0003828271), with a total staff of over 3,000, dedicated to theresearch,development, manufacturing and marketing of pharmaceuticals. It hasheadquartersin Milan, Italy, operations in the main European countries, and agrowingpresence in the new markets of Central and Eastern Europe. A Europeanfieldforce of over 1,500 medical representatives promotes a wide range ofinnovativepharmaceuticals, both proprietary and under license, in a number oftherapeuticareas including a specialized business dedicated to treatments forrarediseases. Recordati's current and growing coverage of theEuropeanpharmaceutical market makes it a partner of choice for new product licensesfromcompanies which do not have European marketing organizations.Recordati iscommitted to the research and development of new drug entitieswithin thecardiovascular and urogenital therapeutic areas and of treatments forrarediseases. Consolidated revenue for 2011 was EUR 762.0 million, operatingincomewas EUR 163.5 million and net income was EUR 116.4 million.

Statements contained in this release, other than historical facts, are"forward-looking statements" (as such term is defined in the PrivateSecuritiesLitigation Reform Act of 1995). These statements are based oncurrentlyavailable information, on current best estimates, and on assumptionsbelieved tobe reasonable. This information, these estimates and assumptions may proveto beincomplete or erroneous, and involve numerous risks and uncertainties,beyondthe Company's control. Hence, actual results may differ materially fromthoseexpressed or implied by such forward-looking statements. Allmentions anddescriptions of Recordati products are intended solely as informationon thegeneral nature of the company's activities and are not intended toindicate theadvisability of administering any product in any particular instance.




RECORDATI GROUP

Summary of consolidated results prepared in accordance with the
International
Accounting Standards and International Financial Reporting Standards
(IAS/IFRS)
(thousands of EUR)

+--------------------------------------+-----------+-----------+----------+
| INCOME STATEMENT | 2011 | 2010 | Change % |
+--------------------------------------+-----------+-----------+----------+
| REVENUE | 762,036 | 728,134 | 4.7 |
| | | | |
| Cost of sales | (259,977) | (240,065) | 8.3 |
| +-----------+-----------+----------+
| GROSS PROFIT | 502,059 | 488,069 | 2.9 |
| | | | |
| Selling expenses | (232,160) | (216,478) | 7.2 |
| | | | |
| Research and development expenses | (55,956) | (68,841) | (18.7) |
| | | | |
| General & administrative expenses | (45,386) | (44,026) | 3.1 |
| | | | |
| Other income (expenses), net | (5,080) | (3,940) | 28.9 |
| +-----------+-----------+----------+
| OPERATING INCOME | 163,477 | 154,784 | 5.6 |
| | | | |
| Financial income (expenses), net | (3,465) | (3,787) | (8.5) |
| +-----------+-----------+----------+
| PRE-TAX INCOME | 160,012 | 150,997 | 6.0 |
| | | | |
| Provision for income taxes | (43,566) | (42,417) | 2.7 |
| +-----------+-----------+----------+
| NET INCOME | 116,446 | 108,580 | 7.2 |
+--------------------------------------+-----------+-----------+----------+
| Attributable to: | | | |
| | | | |
| Equity holders of the parent | 116,434 | 108,571 | 7.2 |
| | | | |
| Minority interests | 12 | 9 | 33.3 |
+--------------------------------------+-----------+-----------+----------+


+-------------------+---------+---------+----------+
| EARNINGS PER SHARE| 2011 | 2010 | Change % |
+-------------------+---------+---------+----------+
| Basic |EUR 0.584|EUR 0.548| 6.6 |
| | | | |
| Diluted |EUR 0.556|EUR 0.524| 6.1 |
+-------------------+---------+---------+----------+

Earnings per share (EPS) are based on average shares outstanding duringeachyear, 199,369,542 in 2011 and 198,170,113 in 2010, net of average treasurystockwhich amounted to 9,755,614 shares in 2011 and to 10,955,043 shares in2010.Diluted earnings per share is calculated taking into account stockoptionsgranted to employees.

+------------------------+---------+---------+----------+| COMPOSITION OF REVENUE | 2011 | 2010 | Change % |+------------------------+---------+---------+----------+| Total revenue | 762,036 | 728,134 | 4.7 || +---------+---------+----------+| Italy | 221,603 | 199,531 | 11.1 || | | | || International | 540,433 | 528,603 | 2.2 |+------------------------+---------+---------+----------+

Pending completion of independent and statutory audits.


RECORDATI GROUP Summary of consolidated results prepared in accordance with theInternationalAccounting Standards and International Financial Reporting Standards(IAS/IFRS) (thousands of EUR)

+---------------------------------------------------+----------+----------+|ASSETS |31.12.2011|31.12.2010|+---------------------------------------------------+----------+----------+|Property, plant and equipment | 55,397| 53,017|| | | ||Intangible assets | 149,649| 113,512|| | | ||Goodwill | 365,719| 305,741|| | | ||Equity investments | 1,977| 1,930|| | | ||Non-current receivables | 1,282| 2,485|| | | ||Deferred tax assets | 22,494| 20,221|| +----------+----------+|TOTAL NON-CURRENT ASSETS | 596,518| 496,906|| | | || | | || | | ||Inventories | 108,251| 85,190|| | | ||Trade receivables | 141,231| 126,575|| | | ||Other receivables | 21,311| 26,734|| | | ||Other current assets | 3,198| 2,825|| | | ||Fair value of hedging derivatives (fair value | | || hedge) | 1,791| 1,164|| | | ||Short-term financial investments, cash and cash | | ||equivalents | 105,164| 161,680|| +----------+----------+|TOTAL CURRENT ASSETS | 380,946| 404,168|+---------------------------------------------------+----------+----------+|TOTAL ASSETS | 977,464| 901,074|+---------------------------------------------------+----------+----------+ +---------------------------------------------------+----------+----------+|EQUITY AND LIABILITIES |31.12.2011|31.12.2010|+---------------------------------------------------+----------+----------+|Share capital | 26,141| 26,141|| | | ||Capital in excess of par value | 83,719| 83,719|| | | ||Treasury stock | (53,215)| (52,579)|| | | ||Hedging reserve | (4,227)| (4,299)|| | | ||Translation reserve | (8,232)| (592)|| | | ||Other reserves | 26,600| 25,733|| | | ||Retained earnings | 445,745| 389,284|| | | ||Net income for the year | 116,434| 108,571|| | | ||Interim dividend | (38,525)| -|| +----------+----------+|GROUP SHAREHOLDERS' EQUITY | 594,440| 575,978|| +----------+----------+|Minority interest | 40| 28|| +----------+----------+|SHAREHOLDERS' EQUITY | 594,480| 576,006|| +----------+----------+| | | || | | ||Loans due after one year | 137,518| 96,767|| | | ||Employees' termination pay | 16,692| 19,259|| | | ||Deferred tax liabilities | 6,049| 5,699|| | | ||Other non-current liabilities | 2,062| 606|| +----------+----------+|TOTAL NON-CURRENT LIABILITIES | 162,321| 122,331|| | | || | | || | | ||Trade payables | 98,678| 93,068|| | | ||Other payables | 58,335| 53,536|| | | ||Tax liabilities | 12,091| 9,691|| | | ||Other current liabilities | 348| 620|| | | ||Provisions | 21,813| 21,413|| | | ||Fair value of hedging derivatives (cash flow hedge)| 4,227| 4,299|| | | ||Loans due within one year | 11,616| 16,604|| | | ||Bank overdrafts | 13,555| 3,506|| +----------+----------+|TOTAL CURRENT LIABILITIES | 220,663| 202,737|+---------------------------------------------------+----------+----------+|TOTAL EQUITY AND LIABILITIES | 977,464| 901,074|+---------------------------------------------------+----------+----------+

Pending completion of independent and statutory audits.

RECORDATI S.P.A.

Summary of consolidated results prepared in accordance with theInternationalAccounting Standards and International Financial Reporting Standards(IAS/IFRS)(thousands of EUR)

+------------------+---------+---------+--------+| | 2011 | 2010 | Var. % |+------------------+---------+---------+--------+| Revenue | 272,243 | 241,442 | 12.8 || | | | || Operating income | 43,642 | 33,617 | 29.8 || | | | || Pre-tax income | 93,976 | 81,038 | 16.0 || | | | || Net income | 78,462 | 67,892 | 15.6 |+------------------+---------+---------+--------+ +--------------------------------------------+------------+------------+| | 31.12.2011 | 31.12.2010 |+--------------------------------------------+------------+------------+| | | || | | || Non-current assets | 495,511 | 388,585 || | | || Current assets | 174,749 | 225,178 || +------------+------------+| TOTAL ASSETS | 670,260 | 613,763 |+--------------------------------------------+------------+------------+| | | || | | || Shareholders' equity | 307,644 | 321,151 || | | || Non-current liabilities | 173,299 | 110,301 || | | || Current liabilities | 189,317 | 182,311 || +------------+------------+| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 670,260 | 613,763 |+--------------------------------------------+------------+------------+

Pending completion of independent and statutory audits.

DECLARATION BY THE MANAGER RESPONSIBLE FOR PREPARING THE COMPANY'SFINANCIALREPORTS

The manager responsible for preparing the company's financial reportsFritzSquindo declares, pursuant to paragraph 2 of Article 154-bis of theConsolidatedLaw on Finance, that the accounting information contained in this pressreleasecorresponds to the document results, books and accounting records.

Recordati: : BOARD APPROVES THE 2011 ACCOUNTS:http://hugin.info/143644/R/1592036/500538.pdf

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

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

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

Source: RECORDATI via Thomson Reuters ONE

[HUG#1592036]

For further information:

Recordati website: www.recordati.com

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

Media Relations
Ketchum Pleon
Cristina Risciotti,
(39)0262411919
Email Contact

Marzia Ongaretti
(39)0262411915
Email Contact

MarketWire

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