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Egis Q2 profits edge down on forex losses

Hungarian drugmaker Egis, majority-owned by France's Servier, had net profit of HUF 4.54 billion in the second quarter of its business year started October 1, down 4% from the same period a year earlier as foreign exchange losses weighed, the company's consolidated IFRS report shows.

Profits were over the HUF 4.06 billion estimate of analysts in a poll by

Sales were up 10.0% at HUF 31.57 billion as domestic sales climbed 5.1% to HUF 8.05 billion and exports rose 11.8% to HUF 23.52 billion. Cost of sales inched up just 1% to HUF 13.28 billion, lifting gross profit by 17.6% to HUF 18.29 billion.

Operating profit jumped 48.5% to HUF 5.96 billion but a HUF 1.81 billion net foreign exchange loss caused net profit to fall.

The forint firmed about 0.2% to the euro and 5.6% against the dollar in the twelve months to the end of March 2011, Econews calculated.

In a breakdown of export revenue, Egis said sales in Eastern Europe fell 2% to €33.2 million. Sales in Poland were flat at €16.4 million, sales in the Czech Republic slipped 3% to €4.5 million, Slovakian sales were down 18% at €3.3 million and sales in Romania edged up 2% to €4.2 million. Sales elsewhere in the region came to €4.7 million, up 1%.

Sales in Russia jumped 29% to €29.3 million but sales in Ukraine fell 28% to €6.8 million. Sales in other CIS markets were up 16% at €6.3 million.

Sales in Egis's other markets around the world were up 17% at €5 million.

For the first half of its business year, Egis booked net profit of HUF 9.22 billion, up 4.1% from the same period a year earlier.

First-half revenue rose 13.2% to HUF 63.49 billion. Cost of sales was up 11.5% at HUF 27.79 billion and gross profit rose 14.5% to HUF 35.70 billion.

Operating profit increased 36.4% to HUF 10.34 billion in H1, but a HUF 1.34 billion forex loss hit the bottom line.

Egis had total assets of HUF 178.08 billion on March 31, 2011, up 10.1% from twelve months earlier. Net assets rose 11.5% to HUF 157.16 billion. Non-current liabilities increased 2.6% to just HUF 4.07 billion.