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)