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SALES

According to the unaudited standalone Income Statement, in the period January- September 2019, the sales reached the amount of MKD 6,305,476,687 - 14% up compared to the same period last year. Total consolidated sales reached MKD 8,266,092,980 – an increase of 15% compared to the same period last year.

SALES BY REGIONS AND COUNTRIES

Consolidated sales in the domestic market increased by 7%, while the total consolidated export of the company increased by 19%. Out of the total consolidated sales, 35% were realized in the domestic market, while the foreign markets account for 65%. The breakdown by region shows that the countries of South-East Europe account for 33% of the sales, 21% of the sales were realized in the countries from Western Europe (EU and EFTA), Russia and CIS – 9%, while the other markets account for 2% of the total consolidated sales.

Noticeable rise was seen in Great Britain reaching sales of MKD 278,615,173 - increased by 2 times, Russia with sales of MKD 538,437,567 – increased by 95% and the USA with sales of 194,055,288– increased by 69% compared to the same period last year. Growth in sales was also marked in the following export markets: Germany - 51%, Ukraine – 32%, Romania – 24%, Kosovo – 16%, Bulgaria - 15%, Monte Negro – 10%, Serbia – 9%, Slovenia – 9%, Croatia – 7%, etc.

SALES BY GROUP OF PRODUCTS

The breakdown of total consolidated sales by group of products shows that the best sellers are the products from the segment Pharmaceuticals – 86%, with OTC products accounting for 22%, cardiovascular products - 15%, antibiotics - 15%, neurological products – 13%, etc. The Chemistry Cosmetics Botanicals segment accounts for 14% of the total consolidated sales, or more precisely Chemistry – 2%, Cosmetics – 8% and Botanicals – 4%.

OPERATING RESULTS

Standalone earnings before interest, taxes, depreciation and amortization (EBITDA), which amount to MKD 1,308,826,329 marked an increase of roughly 22%, whereas the net profit amounting to MKD 764,835,749 rose by 25%.

Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA), which reached MKD 1,337,473,830 saw an increase of 22%, whereas the net consolidated profit amounting to MKD 738,604,635 went up by 26%.

The Group’s net profit margin for the first 9 months of 2019 was 8.9%, operating margin was 10.4%, while EBITDA margin was 16.2%.

INVESTMENTS

The total investments in non-current assets for the period January – September 2019 amounted to MKD 602,620,282, mainly allocated in production facilities.

In 2019 investments in expansion of production facilities begаn. The new production units will cover an area of 7.000 m² and,  similar to all other units, will be carried out in accordance with the strict requirements of Good Manufacturing Practice (GMP). All of this will increase production capacity by at least 50%, thus rising from the current capacity of almost 2 billion tablets and capsules annually to more than 3 billion pieces of solid pharmaceutical forms. The total investment is estimated at EUR 11 million. The completion of this investment, planned for the first half of 2020, will make conditions for the creation of about 200 new jobs in the Pharmacy segment.

EMPLOYEES

In the period January – September 2019 Alkaloid recruited 127 new employees in the Republic of North Macedonia. At the end of September 2019 there were 1,576 employees in Alkaloid AD Skopje and 536 employees in its subsidiaries and representative offices in the country and abroad, totaling 2,112 employees.

In March 2019 the management board of Alkaloid AD Skopje reached a decision on approval and payment of holiday allowances for its employees. The amount paid  was MKD 27,709 gross or MKD 24,938 net. In august 2019 a decision for net salary increase of 5.2% was reached for Alkaloid’s employees starting as of 01.09.2019, raising the average net salary for September 2019 to MKD 46,686.00.

SHARES

The shares of Alkaloid AD Skopje have been listed since 2002 and stand as one of the most traded and most liquid shares on the Macedonian Stock Exchange. The share price of Alkaloid AD Skopje ranged from MKD 8,200.00 to MKD 11,500.00, with an average of MKD 8,955.70 per share. Market capitalization reached MKD 16 billion.

BUSINESS PLAN 2019

The business plan for 2019 adopted by the Managing Board of Alkaloid AD Skopje at its session held on December 27th 2018, anticipates investment of around 16% of the consolidated sales in tangible and intangible assets from own sources, a growth in consolidated sales of at least 7% compared to 2018, as well as a growth in pre-tax consolidated profit of at least 7% in comparison with 2018.

Considering current results, if the conditions in the markets in which Alkaloid operates remain unchanged, the Management of the company estimates that the sales and profit for 2019 will exceed the plan for 2019.