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Press Release

Audited Financial Statements' Announcement for The Year Ended 31 December 2017

EastPharma Ltd
Posted on: 09 Mar 18


London, 9 March 2018 - EastPharma (EAST LI)  announces that it is releasing its audited financial statements for the year ended 31 December 2017 and a review of its main subsidiary DEVA Holding's audited financial statements for the related period.  

Management comment on the financial performance of EastPharma is provided in the attachment, and a presentation of the results will be available on the EastPharma website on 12 March 2018.

A conference call to review the financial performance for the year ended 31 December 2017 will be hosted by the management of EastPharma at 12:00-noon London time on 12 March 2018 (08:00am New York time / 01:00-pm Zurich time / 03:00pm Istanbul time). The dial-in details are provided below.

Conference call:

Dial-in Number (UK): 08003767425
Dial-in Number (US): 18668692321
Dial-in Number (Switzerland): 0800740368
Dial-in Number (Germany): 08000007416

Conference ID:  3178578

For further information, please contact:
Investor Relations:


According to IFRS results, revenue in 12M 2017 was USD 220.4mn, down 2.0% from the same period in 2016 (USD 224.9mn). ) In Turkish Lira terms, revenue increased by 18.8% in the same period (Net sales in 12M 2017 were TRY 802.8mn vs TRY 676.0mn net sales in 12M 2016).

The average US Dollar exchange rate strengthened by 20.8% against the Turkish Lira to 3.6445 in 12M 2017, which compares with an average rate of 3.0181 in 12M 2016. The USD/TRY exchange rate was 3.7719 on 31 December 2017, while it was 3.5192 on 31 December 2016, which corresponds to an increase of 7.2%.

EastPharma's sales decrease in US dollar terms was mainly due to depreciation of Turkish Lira against hard currencies. In 12M 2017 versus 12M 2016, Human Pharma revenues in US dollar terms decreased by 2.2% (from USD 209.2mn to USD 204.6mn). In TRY terms, increased by 18.7% (from TRY 627.8mn to TRY 745.1mn). Veterinary products revenues in US dollar terms increased by 2.8% (from USD 12.78mn to USD 13.14mn). In TRY terms, increased by 24.7% (from TRY 38.41mn to TRY 47.88mn).

Deva's Capital Markets Board (CMB) results show revenue in 12M 2017 was TRY 800.3mn, up 16.2% from the same period in 2016 (TRY 688.5mn).

Deva's sales increase was mainly achieved by both increased volumes at human pharma businesses and price increase which was effective as of 20 February 2017. In 12M 2017 versus 12M 2016, Human Pharma revenue increased by 15.8 % (from TRY 641.3mn to TRY 742.7mn). Veterinary business revenue increased by 24.7% compared to the 12M 2016 (from TRY 38.41mn to TRY 47.88mn).

EastPharma's gross profit in 12M 2017 was USD 104.8mn, up from USD 102.0mn in 12M 2016. The gross profit margin in 12M 2017 was 48% vs 45% in 12M 2016.

EBITDA in 12M 2017 was USD 55.6mn vs USD 55.8mn in 12M 2016 representing an EBITDA margin of 25.2% vs 24.8% in 12M 2016.

Operating expenses in 12M 2017 increased by 0.8%, from USD 63.17mn to USD 63.65mn. The ratio of operating expenses to revenues increased to 28.9% from 28.1% compared to 12M 2016. Sales and marketing expenses in 12M 2017 were 13.9% of revenues; general administrative expenses were 11.2% of revenues; research and development expenses were 3.8% of revenues. These expenses were 14.3%, 12.0% and 1.8% in 12M 2016, respectively.

Finance cost decreased by USD 1.38mn, from USD 33.70mn to USD 32.32mn in 12M 2017 compared to 12M 2016. Foreign exchange losses on borrowings and loss on derivatives increased by USD 0.78mn, bank loan and bond issued interests decreased by USD 0.78mn, amortization of discount on receivables decreased by USD 1.63mn and other interest expenses increased by USD 0.25mn. Average TRY interest rate increased to 12.9% in 12M 2017 from 11.9% in 12M 2016.

Receivable days at 31 December 2017 were 100 days, compared to 109 days as at 31 December 2016.

Philipp Haas, EastPharma's Chairman and CEO, stated;

'During 2017, we had to face many adverse events. First of all and most importantly, the Turkish Lira devalued by 21%. The weak Lira in turn led to significantly higher interest rates, both of which are hurting our business through pressure on margins and increase in finance costs. Turkish authorities took measures to restrict certain products, like some types of antibiotics, but also certain products which caused high expenditure to the state budgets, resulting in sharp sales losses and write offs of inventories in those products.  We also saw a marked increase in competition in our existing products, negatively impacting sales and margins.
We were able to counterbalance these negative impacts by launching new products and through continued strict cost management and efficiency improvement programs. Thanks to these efforts we were able to keep sales almost unchanged in US Dollar terms and we were also able to increase profits.

For 2018, most of the negative environmental factors may persist and we remain cautious. As we are running into more and more capacity restraints, our investment programs into new production capacity as well as into new products, will continue. As we still have a significant debt level, and given the high interest rates we are paying currently, it will be wise to reinvest profits and not to pay dividends. During 2017, we have used all of our tax loss carry forwards, and therefore, our tax rate will go up in 2018.'

EastPharma Ltd - a company active in the manufacturing and marketing of pharmaceutical products in Turkey and in other regional markets; for further information please visit

EastPharma Consolidated Financial Statements 31 December 2017
12M 2017 Results of EastPharma Ltd

This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.

The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: EastPharma Ltd via GlobeNewswire

Last updated on: 11/03/2018

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