Despite difficult environment, Stada Arz posts solid results

German generic and branded drugmaker Stada Arzneimittel (SAZ: GR) says that, in the first half of 2014, the group’s business development was characterized by difficult framework conditions in the two market regions of Commonwealth of Independent States (CIS)/Eastern Europe and Germany.

Nevertheless, group sales increased by 4% to slightly over 1 billion euros ($1.35 billion). Reported operating profit decreased in the half year under review by 6% to 121.2 million euros, while reported earnings before interest, taxes, depreciation and amortization (EBITDA) rose 5% to 192.1 million euros. Reported net income was – despite the high one-time special effects – at around the same level of the corresponding period of the previous year at 66.8 million euros (versus 66.6 million euros).

Sales of the core segment Generics decreased by 2% to 598.7 million euros in the reporting period, primarily due to the development in the markets of Germany and Russia. Generics thus contributed 59.7 % to group sales (versus 63.4% in first-half 2013).