Alkaloid – operating results for January – December 2019

28.02.2020

Alkaloid – operating results for January – December 2019

Alkaloid marked 13% growth in consolidated sales, 18% growth in consolidated net profit, investments of MKD 1 billion and 218 new employments in the period January - December 2019

Sales

According to the unaudited standalone Income Statement, in the period January- December 2019, the sales reached the amount of MKD 8,428,009,344 - 12% up compared to the same period last year. Total consolidated sales reached MKD 11,102,808,123 – an increase of 13% compared to the same period last year.

Sales by regions and countries

Consolidated sales in the domestic market increased by 8%, while the total consolidated export of the company increased by 17%. 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, 20% of the sales were realized in the countries from Western Europe (EU and EFTA), Russia and CIS – 9%, while the other markets account for 3% of the total consolidated sales. 

Noticeable rise was seen in the USA with sales of MKD 268,202,851 – more than double, Russia with sales of MKD 742,189,553 – increased by 91%, Germany with sales of MKD 75,689,421 - increased by 57% and Great Britain reaching sales of MKD 315,923,440 - increased by 56%, compared to the same period last year. Growth in sales was also marked in the following export markets: Romania – 42%, Ukraine – 35%, Bulgaria - 16%, Kosovo – 16%, Montenegro – 9%, Serbia – 7%, Slovenia – 7%, Croatia – 5%, 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 1,774,492,371 marked an increase of roughly 20%, whereas the net profit amounting to MKD 1,007,811,167 rose by 19%.

Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA), which reached MKD 1,857,857,478 saw an increase of 19%, whereas the net consolidated profit amounting to MKD 1,015,259,965 went up by 18%.

The Group’s net profit margin for 2019 was 9.1%, operating margin was 10.8%, while EBITDA margin was 16.7%.

Investments

The total investments in non-current assets for the period January – December 2019 amounted to MKD 1,091,631,671, 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.

In order to improve the energy efficiency and reduce the harmful emissions in the air, the project for gasification of Alkaloid’s site in Gjorce Petrov was started in 2019. The project is worth over 1 million euro and its finalization is expected in 2020.

Employees

In the period January – December 2019 Alkaloid recruited 218 new employees in the R.N. Macedonia. At the end of December 2019 there were 1,653 employees in Alkaloid AD Skopje and 574 employees in its subsidiaries and representative offices in the country and abroad, totaling 2,227 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 December 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 in 2019 ranged from MKD 8,200.00 to MKD 11,901.00, with an average of MKD 9,508.11 per share which is 18% up compared to the average price in 2018. Market capitalization in 2019 exceeded MKD 17 billion.

Business plan

Sales and profit for 2019 exceeded the business plan for 2019 adopted by the Managing Board of Alkaloid AD Skopje at its session held on December 27th 2018.

The business plan for 2020 adopted by the Managing Board of Alkaloid AD Skopje at its session held on December 27th 2019, anticipates investment of around 14% of the consolidated sales in tangible and intangible assets, a growth in consolidated sales of at least 7% compared to 2019, as well as a growth in pre-tax consolidated profit of at least 7% in comparison with projections for 2019.