Challenging 1st-qtr 2015 for Stada Arzneimittel

German drugmaker Stada Arzneimittel (SAZ: GR) posted first-quarter 2015 results, with group sales down 4% at 486.2 million euros ($551.8 million). Net income (reported) was down 39% to 21.2 million euros, with earnings per share falling 40% to 0.35 euros.

In the first quarter of 2015, Stada said it was still confronted with challenging framework conditions particularly in the market region CIS (Commonwealth of Independent States/Eastern Europe. Furthermore, the group had to report one-time special effects in connection with currency translation effects recorded in the income statement resulting from the weakness of the Russian rouble and the strong devaluation of the Ukrainian hryvnia in the total amount of 11.1 million euros before or 9.1 million euros after taxes.

“In view of the significant challenges, particularly in the market region CIS/Eastern Europe, we expected a difficult business development for the first quarter of 2015. In the market regions Central Europe, Germany and Asia/Pacific & MENA, however, sales development was positive. Adjusted free cash flow therefore improved substantially,” said Hartmut Retzlaff, chairman of the executive board of Stada Arzneimittel.