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Egis lowers revenue targets for CIS, Eastern Europe

Hungarian drug maker Egis is lowering its projections for revenue in Russia and the CIS as well as on the Eastern European market, deputy-CEO László Marosffy said at a press conference, a day after the company published its Q2 report.

Egis sees full-year revenue in Ukraine falling 30%-40% in dollar terms, more than the 10% decline expected earlier, Marosffy said. It is lowering the target for revenue growth in Russia to 5%-10% from the earlier 10%, and to 8%-10% from the 15% growth target announced in February for the rest of the CIS, he added.

Egis is lowering its growth target for Eastern Europe to 5% from 12% in euro terms, but it is standing by its projection for 20% growth in Poland, calculated in zloty.

Egis's earlier target for 2% growth in Hungary can still be achieved, Marosffy said. However, if a reduction of some state drug subsidies from April 1 causes turnover to fall, domestic revenue growth could slow to 0%-2%, he added.

Egis targets growth on all markets in the next, 2009/2010 business year, Marosffy said.

Egis, majority-owned by France's Servier, had net profit of HUF 5.13 billion in the second quarter of its financial year started October 1, up 68pc from the same period a year earlier, boosted by a big foreign exchange gain, the company's unconsolidated IFRS report published on Monday shows.

Sales rose 11% to HUF 26.87 billion. Domestic sales climbed 10% to HUF 7.34 billion and export sales rose 11% to HUF 19.23 billion.

Egis's bottom line was helped by financial profit of HUF 2.74 billion, largely the result of a HUF 3.68 billion net foreign exchange gain. (MTI – Econews)