DJ DGAP-Adhoc: STADA: Net profit significantly improved - dividend set for further increase based on good preliminary results for 2009 - Positive outlook for 2010
STADA Arzneimittel
AG / Dividend/Preliminary Results
01.03.2010 16:25
Dissemination of an Ad hoc announcement according to § 15
WpHG, transmitted by
DGAP - a company of EquityStory
AG.
The issuer is solely responsible for the content of this announcement.
=--------------------------------------------------------------------------
Today, on March 1, 2010, the Executive Board of STADA Arzneimittel
AG,
during an Executive Board meeting, based on the good preliminary results of
financial year 2009 available to date, made a resolution to increase the
dividend for the past financial year. The Executive Board also adopted a
generally positive outlook for financial year 2010.
According to the preliminary results submitted at the Executive Board
meeting, it is expected that all reported key earnings figures of the STADA
Group increased in financial year 2009, by a significant level. Despite
difficult framework conditions and an associated planned moderate sales
decrease, STADA has thus, in the view of the Executive Board, achieved a
good result which provides the basis for a dividend increase.
Specifically, according to these preliminary results, it is expected that,
respectively, compared to the previous year:
- Net income recorded growth of approx. 32% to approx. EUR 100.4 million
(previous year: EUR 76.2 million)
- Earnings per share recorded an increase of approx. 32% to approx. EUR
1.71 (previous year: EUR 1.30)
- Earnings before interest, taxes, depreciation and amortization (
EBITDA)
recorded an increase of approx. 10% to approx. EUR 280.1 million (previous
year: EUR 255.4 million)
- Operating profit recorded growth of approx. 9% to approx. EUR 191.9
million (previous year: EUR 176.4 million)
- Earnings before interest and taxes (
EBIT) recorded an increase of approx.
10% to approx. EUR 192.5 million (previous year: EUR 175.2 million)
- Earnings before taxes (
EBT) recorded growth of approx. 34% to approx. EUR
141.5 million (previous year: EUR 105.5 million)
The earnings increase was achieved against the backdrop of planned
decreased Group sales; preliminary Group sales in the reporting year 2009,
at approx. EUR 1,568.8 million (previous year: EUR 1,646.2 million), were
approx. 5% lower than the previous year. However, adjusted for
non-operational effects from portfolio changes and currency effects, the
Group recorded sales growth of approx. 4% in 2009.
Adjusted for one-time special effects (net burden in 2009 in the amount of
EUR 17.3 million before or EUR 12.5 million after taxes; previous year: net
burden due to one-time special effects in the amount of EUR 40.1 million
before taxes or EUR 26.2 million after taxes) and non-operational effects
of currency influences and interest rate hedge transactions (net burden in
2009 in the amount of EUR 4.2 million before or EUR 2.8 million after
taxes, previous year: net burden due to non-operational effects from
currency influences and interest rate hedge transactions in the amount of
EUR 19.2 million before or EUR 13.5 million after taxes), the earnings
level from the previous year in 2009 was presumably almost achieved. The
corresponding preliminary adjusted net income of approx. EUR 115.8 million
(previous year: EUR 116.0 million) was at the level of the previous year.
The moderate drop in preliminary adjusted
EBITDA by approx. 2% to approx.
EUR 287.5 million (previous year: EUR 294.3 million) was in the planning
area; the minimum goal formulated at the beginning of the year of an
adjusted
EBITDA of EUR 250 million was thus significantly exceeded.
Preliminary adjusted operating profit decreased slightly by approx. 5% to
approx. EUR 211.1 million (previous year: EUR 221.4 million), preliminary
adjusted earnings before interest and taxes (
EBIT) by approx. 4% to approx.
EUR 210.8 million (previous year: EUR 219.0 million) and preliminary
adjusted earnings before taxes (
EBT) by approx. 1% to approx. EUR 163.0
million (previous year: EUR 164.8 million).
As intended, the Group's net financial liabilities have presumably been
considerably reduced in 2009 to approx. EUR 899.0 million (December 31,
2008: EUR 1,015.7 million). The financial liabilities to
EBITDA ratio thus
presumably improved to 3.2 (previous year: 4.0), and the financial
liabilities to adjusted
EBITDA ratio presumably improved to 3.1 (previous
year: 3.5).
The Executive Board is currently hesitant to again increase the Group's net
debt in order to finance external growth, without, however, ruling out
taking advantage of special opportunities. More importantly, the Executive
Board is striving for a return of the net debt to adjusted
EBITDA ratio to
a maximum value of 3; at the same time, the long-term refinancing structure
of the Group to increase liquidity security should
be optimized, without
borrowing additional equity.
For larger projects such as acquisitions or cooperations with a significant
capital investment, however, appropriate capital measures continue to
be imaginable if such acquisitions or cooperations too strongly burdened the
equity-to-assets ratio.
Cash flow from operating activities is expected to have increased in 2009
to approx. EUR 250.5 million, adjusted for influences outside of the period
at that time to EUR 261.2 million (previous year: EUR 129.3 million
adjusted for influences outside of the period at that time: EUR 151.0
million) and thereby achieved the highest value in the company history.
Against the backdrop of the good preliminary results, STADA's Executive
Board today resolved to recommend to the 2010 Annual General Meeting for
financial year 2009 an increased dividend in the amount of EUR 0.55 per
common share (previous year: EUR 0.52 per common share). This corresponds
to an increase in the dividend of 3 cent or 6% in relation to the previous
year and an expected distribution ratio of approx. 32% (previous year:
approx. 40%) in relation to the Group's expected net income in financial
year 2009. With this proposed resolution to increase the dividend, the
Executive Board aims to give shareholders a share in the increased reported
Group earnings, without placing too great a restriction on the Group's
financial flexibility for further growth or calling into question the
mid-term goal of further decreasing net debt.
In addition, at its meeting today, the Executive Board fundamentally
confirmed its generally positive outlook for the further development of the
STADA Group. This is, on the one hand, characterized by the continued
existing structural and operative growth opportunities; on the other hand
there is also a continued operationally challenging environment and
possible burdening non-operational effects such as currency effects.
In the operating business, in the Executive Board's assessment,
far-reaching regulatory interventions, intensive competition and
significant margin pressure will always occur in individual national
markets. The latter applies in particular to the increasing volume of
business in the Generics segment characterized by tenders.
Furthermore, the Group will, also in the future, have to deal with
non-operational influence factors, particularly specific effects from the
global financial and economic crisis. Thereby, also in financial year 2010,
the development of the STADA Group will depend to a large extent on
currency relations, particularly those of the Russian ruble and Serbian
dinar to the euro.
Thus, the sales and earnings development of the STADA Group will, also in
the current financial year 2010,
be characterized by differing and
partially contradictory factors in the various national markets. From the
expected sales increase for the Group expected by the Executive Board in
2010, however, positive influences on earnings development should also
be anticipated.
The Executive Board continues to expect that the current 'STADA - build the
future' project for the optimization of the Group structures will allow
additional earnings contributions to
be achieved, which with the
implementation of the individual measures, will amount to annual savings in
the double digit million area. However, from today's perspective, after
decisions on the implementation of the measures anticipated in the first
half of 2010, rising investments as well as burdens on the income statement
due to project-related special effects must
be expected.
Against the backdrop of these factors influencing the Group's earnings
development, the Executive Board in its overall assessment expects that in
the 2010 financial year operationally there is the opportunity for earnings
growth and at least a stabilization of operating margins.
Overall, from today's perspective it should
be possible in the 2010
financial year to
be able to achieve growth in terms of sales and also in
terms of all operational key earnings figures, i.e. adjusted for one-time
special effects.
STADA's final business results for 2009 will
be published on March 30,
2010.
Further information:
STADA Arzneimittel
AG / Corporate Communications / Stadastraße 2-18 /
61118 Bad Vilbel, Germany / Phone: +49(0) 6101 603-113 /
Fax: +49(0) 6101 603-506 / E-Mail: communications@stada.de
Or visit our website at www.stada.com
01.03.2010 16:25 Ad hoc announcement, Financial News and Media Release distributed by DGAP.
Media archive at www.dgap-medientreff.de and www.dgap.de
=--------------------------------------------------------------------------
Language: English
Company: STADA Arzneimittel
AG Stadastraße 2-18
61118 Bad Vilbel
Deutschland
Phone: +49 (0)6101 603- 113
Fax: +49 (0)6101 603- 506
E-mail: communications@stada.de
Internet: www.stada.de
ISIN: DE0007251803, DE0007251845,
WKN: 725180, 725184,
Indices:
MDAX Listed: Regulierter
Markt in Frankfurt (Prime Standard), Düsseldorf;
Freiverkehr in Berlin, Hannover, München, Hamburg, Stuttgart
(MORE TO FOLLOW) Dow Jones Newswires
March 01, 2010 10:25 ET (15:25 GMT)
