Oct 31, 2023
ALKALOID – operating results for the January – September 2023 period
ALKALOID reached consolidated sales of EUR 202.7 million, increased the consolidated export by 15% and invested EUR 20.2 million in the period January - September 2023.
As the unaudited stand-alone Income Statement shows, in the January - September 2023 period sales increased by 13% and reached MKD 9,212,341,451 while total consolidated sales increased by 14% reaching MKD 12,483,936,387 compared to the same period last year.
Sales by region and country
Consolidated sales on the domestic market increased by 10%. The total consolidated export of the company grew by 15%. 30% of the total consolidated sales went on the domestic market, while foreign markets account for 70%. The breakdown by region shows that South-East Europe countries took 28% share of the sales, 22% of the sales went to the countries of Western Europe (EU and EFTA), Eastern Europe (CIS, UA…) took a 19% share, while other markets account for 1% of the total consolidated sales.
Sales in Canada had the highest growth where sales increased 40 times, followed by Italy increased 30 times, then South Africa 5 times, Austria where sales were quadrupled and Czech Republic and Chile where sales were tripled. Following next is Great Britain with an increase of 87%, then Armenia 64%, Romania 63%, Mongolia 26%, Albania 24%, Bulgaria 14%, Ukraine 12%, Croatia 11%, Bosnia and Hercegovina 8%, Serbia 6% etc.
Sales by product group
Broken down by product group, the highest share of the total consolidated sales belongs to the Pharmaceuticals segment with 90%, more specifically, antibiotics account for 28%, OTC products 19%, neurological products 12%, cardiovascular products 12%, etc. The Chemistry, Cosmetics and Botanicals segment has a share of 10% of the total consolidated sales, or more precisely Chemistry 2%, Cosmetics 7% and Botanicals 1%. Total sales are up in Pharmaceuticals and in Cosmetics segments compared to the same period in 2022. The Pharmaceuticals segment is up by 16% and Cosmetics 8%.
In the January – September 2023 period a total of MKD 1,240,857,214 has been invested in fixed assets which compared to 2022 is an increase of 47%. This increase in investments is due to ALKALOID's biggest investment project in the last 20 years – the new production department for the production of solid forms 2 – which increases the capacities for the production of solid forms by more than double.
Stand-alone earnings before interest, taxes, depreciation and amortization (EBITDA), which amount to MKD 2,096,790,692 marked an increase of roughly 9%, whereas net profits rose by 12% to MKD 1,299,694,920.
Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) reached MKD 2,222,310,580 - an increase of 12%, while net consolidated profit of MKD 1,295,368,737 grew by 14%.
In its operations ALKALOID AD Skopje engaged more than 1,000 domestic suppliers.
In the period January – September 2023 ALKALOID AD Skopje recruited 191 new employees in the R.N. Macedonia. In March 2023 the Management Board of ALKALOID AD Skopje decided to approve and pay holiday allowance to its employees in amount of MKD 36,500 net. The ALKALOID Group has 2,787 employees, of which 2,122 in the country and 665 in its subsidiaries and representative offices abroad.
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 price of ALKALOID AD Skopje shares ranged from MKD 17,199.00 to MKD 18,400.00 in the January-September 2023 period, with an average of MKD 17,682.15 per share. On 30.09.2023 5,448 individuals and companies held ALKALOID AD Skopje shares, while its market capitalization was MKD 25.2 billion.
Business plan 2023
The business plan for 2023, adopted by the Management Board of ALKALOID AD Skopje at its December 29th, 2022 meeting, anticipates investment of around 11% of the consolidated revenue in tangible and intangible assets, growth in consolidated sales of 10% compared to 2022, and growth in pre-tax consolidated profit of 7% in comparison to 2022.
The 2023 business plan is based on the expectations, forecasts and opportunities on the existing and new markets and products available to the Company at the time of drafting the plan. Circumstances and events in 2023 may vary from those taken into account in the Business Plan and so may actual results.
Expectations for the upcoming period
In the past period, the company has faced a number of internal and external challenges and emerging risks, generated by the energy and economic crisis. To date we have taken a number of measures to offset all negative effects without compromising the company’s successful operations.
In line with expectations, what dominated in 2022 and continued in 2023 is the noticeable rise of prices of many raw materials, fuel and energy, as well as the increase of transport prices globally, especially the significant extension of delivery deadlines.
All this has previously started to affect the inflation rate which reached a high level and reduced predictability. At the same time, interest rates in the regional and European markets have reached record high levels in the last few years, which further burdens the operational costs of operations. In addition to all that, the pronounced uncertainty of global economic flows has also led to the volatility of several national currencies, which significantly increases the risk of negative exchange rate differences in operations.
The biggest challenges and a top priority in the upcoming period remain employees’ health as well as maintaining current liquidity and financial stability and achieving planned goals.